The following is a summary of the Natuzzi S.p.A. (NTZ) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Natuzzi S.p.A. reported sales of EUR 84.5 million, essentially in line with the previous year.

• Gross margin improved to almost 37%, up by about 1.5 percentage points from 2023.

• Operating profit was EUR 0.6 million, compared to a loss of EUR 0.9 million in 2023.

Business Progress:

• Focused on a retail-centric strategy, significantly growing directly operated store sales, particularly in North America.

• Ongoing restructuring resulted in reducing the workforce by approximately 18% since 2021, enhancing operational efficiency.

• Emphasized on expanding margin and decreasing the breakeven point, with a notable improvement of seven percentage points in gross margin since 2019.

Opportunities:

• Continuation of expanding directly operated stores in North America and new partnerships for gallery agreements in North America and Europe highlight opportunities for market expansion and strategic partnerships.

• Leveraging brand strength and initiating new business avenues such as contract agreements in several sectors including hotels and branded buildings.

Risks:

• Dependence on global real estate markets, notably impacted by high interest rates affecting consumer spending and investment in home furnishings.

More details: Natuzzi SPA IR

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