An Italian furniture manufacturer reported a decline in net sales for 2024, with figures falling 3% to €318.8 million compared to €328.6 million in 2023. Branded sales totalled €287.9 million, representing 92.7% of total sales, while direct-operated store (DOS) sales rose 4.1% to €76.1 million, driven by a 14.6% increase in the US.
Natuzzi Italia invoiced sales reached €120.5 million, up slightly from €119.3 million, while Natuzzi Editions, including Divani&Divani by Natuzzi, dropped to €167.4 million from €176.6 million. Fourth quarter sales declined 10.9% to €74.9 million, partly due to industrial restructuring including the closure of the Shanghai plant and the relocation of production to Quanjiao and European sites. These changes were made in anticipation of new US import duties.
In 2024, Natuzzi closed three underperforming stores – two Natuzzi Italia locations in Spain and Switzerland, and one Divani&Divani store in Italy. The group also undertook workforce reductions, with 638 exits, including 331 related to the Shanghai closure, partially offset by new hires in retail, marketing and merchandising.
Operating loss for the year stood at €6.3 million, improving from a €9.5 million loss in 2023. Excluding €5.3 million in severance costs, the loss would have been €1.0 million. Gross margin rose to 36.3%, up from 34.3%.
Investment totalled €7.1 million, focusing on factory upgrades in Italy and DOS improvements in the US and Italy.
Executive Chairman Pasquale Natuzzi stated that the group had made progress in retail and marketing transformation, adding: 'We remain committed to product innovation, digital transformation, and operational excellence.'
Source: www.bigfurnituregroup.com