Italian furniture maker Natuzzi S.p.A. (NTZ) is navigating global market shifts with a bold reallocation strategy. Amid rising tariffs and shifting demand, the company closed its Shanghai plant in 2024 and relocated North American production of its Natuzzi Editions line to Romania and Italy. This move enhanced cost efficiency and supply chain resilience, with European factories now central to its operations.
© Natuzzi
Despite a 3% revenue decline to €318.8 million in 2024, gross margins rose to 36.3%, or 37.7% when excluding severance costs. NTZ cut over 1,100 jobs since 2021, streamlined operations, and avoided trans-Pacific shipping risks.
Sales in North America rose 3% to €98.2 million, boosted by new direct-operated stores. However, sales in Greater China fell 14.6% due to the Shanghai closure, with recovery dependent on the new Quanjiao facility. European sales declined 3.6%, reflecting broader economic stagnation.
NTZ now operates across six countries, balancing risks from geopolitical volatility. Analysts note improved margins and cost discipline but remain cautious. The company's future hinges on stabilising European performance and reviving growth in China.
While volatility remains, NTZ's strategy marks a significant shift towards long-term resilience and profitability in a challenging global market.
Source: www.ainvest.com