Natuzzi SpA, one of the world's most recognised luxury furniture brands, has released unaudited financial results for the second quarter ending 30 June 2025, alongside plans for a comprehensive restructuring aimed at restoring efficiency and profitability.
Chairman and interim CEO Pasquale Natuzzi described a "challenging operating environment," citing geopolitical instability, a weak U.S. housing market, a stronger euro, high interest rates and ongoing U.S. trade tariffs, which collectively weakened consumer confidence and slowed demand for durable goods. Dealers have prioritised reducing inventory rather than placing new orders, putting pressure on revenue and margins.
© Natuzzi
Group sales for the quarter totalled €78.3 million, down 7.2% year-on-year, while the gross margin contracted to 34.0% from 38.1%. The decline reflects lower sales and the planned shift of Natuzzi Editions production for the North American market from China to Italy. Operating loss widened to €2.7 million, compared to €0.4 million a year earlier. Financing costs rose to €3.2 million, driven mainly by adverse currency movements.
Despite the difficult backdrop, the company maintained €22.8 million in cash as of 30 June, supported by proceeds from the sale of non-strategic assets in Romania and High Point, U.S. During the quarter, Natuzzi invested €4.3 million in upgrading its Italian manufacturing facilities.
In response to the challenging conditions, management has outlined a far-reaching restructuring plan focused on significantly reducing fixed costs, increasing production flexibility, outsourcing low–value-added activities, divesting non-core Italian assets and evaluating measures to strengthen the company's capital structure. Italy has granted the Group "National Strategic Interest" status, and negotiations with local institutions regarding labour-related challenges are progressing.
The majority shareholder will provide up to €15 million in interim financing to support liquidity and the transformation process, with the option to convert future transactions into equity.
Natuzzi continues its search for a new CEO with restructuring expertise to succeed Pasquale Natuzzi, who will remain interim CEO and retain his role as Chief Commercial Officer during the transition.
While consumer demand remains soft, the company points to encouraging results from new collections, global marketing initiatives and growing opportunities in Italy, Africa and the Middle East.
Source: HFBusiness
