<body><div>Natuzzi closed its second quarter ended June 30 with a number of increases, year over year.Overall invoiced sales were €84.4 million, up 1% from €83.5 million last year. Branded sales also rose, up 2.5% to €76.4 million compared with the year-ago report. The company noted it completed its transition to a branded retail group and that branded sales accounted for 93.2% of total sales for the period.“The second quarter closed above 2023, in a context where not only our sector but also most of the durable and consumer goods sectors are facing prolonged and challenging market conditions,” said CEO Antonio Achille, in the company’s shareholder letter. “While we remain fully convinced that our brands and retail deserve — and will achieve — higher sales, we see these results as a testament to our company’s resilience and the strength of its brand-retail strategy.”With a gross margin of 38.1% for the period, Natuzzi noted an operating loss of €400,000, compared with breaking even for the 2023 quarter, which it attributed to severance-related costs of €1.2 million. During the period, the company continued its staff restructuring program, with 168 people leaving the company.Achille outlined several priorities for the company going forward: improve the quality of distribution to accelerate the retail-brand journey both with stores and galleries; accelerate efforts in the trade and contract business; expand margins; continue the restructuring program, improving revenue per employee ratio; and divest non-strategic resources to accelerate restructuring and retail strategies.In addition, Natuzzi announced the addition of Nicola Internullo as commercial HR director.As of June 30, Natuzzi had €28.2 million in cash, down from €33.6 million as of Dec. 31, 2023. As of the end of the second quarter, Natuzzi collections are sold in 681 stores worldwide, 607 of them franchised stories, as well as in some 600 galleries globally.For the full Natuzzi shareholder letter, click here.</div></body>

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Natuzzi starts to see results from retail, staffing strategies in Q2

Natuzzi closed its second quarter ended June 30 with a number of increases, year over year. Overall invoiced sales were €84.4 million, up 1% from €83.5 million last year. Branded sales also rose, up 2.5% to €76.4 million compared with the year-ago report. The company noted it completed its transition to a branded retail group and that branded sales accounted for 93.2% of total sales for the period.