The Natuzzi Group, a global leader in luxury furniture, reported financial results for the first nine months of 2024, reflecting steady performance amidst challenges. Total net sales stood at €243.9 million, a marginal decline of 0.3% compared to the same period in 2023. Branded sales, which account for 93% of the total, rose by 0.3% year-over-year and 3.1% compared to 2019, indicating resilience in the core segment.
| Metric | 9Months of 2024 (€M) | YoY Change | Compared to 2019 |
|---|---|---|---|
| Total Net Sales | 243.9 | -0.3% | N/A |
| Branded Sales (93% of total) | 226.8 | +0.3% | +3.1% |
| DOS Sales | 57.4 | +6.3% | +20.8% |
| Gross Margin | 35.8% | Flat | N/A |
| Adjusted Gross Margin | 37.4% | Improved | N/A |
| Operating Loss | (3.6) | Deeper | N/A |
| Adjusted Operating Profit | 1.2 | Positive | N/A |
| Net Finance Costs | (7.4) | +32.1% | N/A |
Key Figures (Q3 2024):
| Metric | Q3 2024 (€M) | YoY Change | Compared to 2019 |
|---|---|---|---|
| Net Sales | 75.0 | Flat | N/A |
| Branded Sales | 68.8 | +0.3% | +4.6% |
| Gross Margin | 31.8% | Decline | N/A |
| Adjusted Gross Margin | 35.7% | Stable | N/A |
Directly Operated Stores (DOS) delivered €57.4 million in sales, marking a 6.3% increase from the prior year and a robust 20.8% growth from 2019. This success was largely fueled by strong performance in the U.S. market, including the opening of a new store in Denver.
The company continued its restructuring efforts, incurring €4.8 million in severance costs as 538 employees exited during the period. Since 2021, Natuzzi has reduced its workforce by 26%, while making strategic hires in retail, marketing, and merchandising to support growth.
Gross margin remained stable at 35.8%, comparable to 2023. Adjusted for severance costs, the margin improved to 37.4%, highlighting operational efficiencies. However, the company recorded an operating loss of €3.6 million, deeper than the €2.2 million loss in 2023. Excluding one-off costs, an operating profit of €1.2 million was achieved, suggesting potential for recovery.
In the third quarter of 2024, net sales reached €75 million, remaining flat year-over-year, with branded sales rising 0.3% from 2023 and 4.6% compared to 2019. Gross margin for the quarter was 31.8%, which improved to 35.7% when adjusted for severance costs. A strategic move during this period included the closure of the Shanghai plant and the relocation of production to Quanjiao.
Natuzzi also faced rising net finance costs of €7.4 million, up from €5.6 million in 2023, driven by higher interest expenses and unfavorable currency movements. Despite this, the company invested €5.4 million in upgrades to Italian factories and retail stores in the U.S. and Italy, demonstrating its commitment to long-term growth.
