Natuzzi posts lower revenue in Q1

Worldwide
Published:  30 May, 2017

The premium Italian leather sofa manufacturer has reported total revenue of €115.9 million in the first quarter of 2017, down -4% from the same quarter in 2016.

Consolidated net sales were €115.9 million for the quarter ended March 31, 2017, against €120.7 in the same period the prior year, meaning a decrease of 4%. Revenues in Natuzzi’s core furniture business (sofas, beds and furnishings) are reported to have reached €109.1 million, -4.3% year-on-year. The manufacturer’s branded revenues were €81 million in the quarter, down -0.5% from the first quarter of 2016, and represented 74.3% of the core business revenues (71.5% in Q1 2016).

Within the core business, furnishings sales are reported to have grown at a double-digit rate; +37.5% over the same quarter in 2016, reaching €8 million and representing 22.1% of the Natuzzi Italia branded sales (Q1 2016: 18.3%). “This confirms our confidence in our product extension strategy”, says Natuzzi pointing out that the industry faced difficult challenges caused by global political environment resulting in consumers to hold back their spending.  However, the manufacturer says its overall price per seat increased 5.4% over the same period in 2016, despite an unfavourable retail environment; helping curb the decline in its branded revenues (-0.5%) in the first quarter of 2017.

Direct retail operations generated sales of €12.1 million in the period, increasing 13.8% over 2016; representing 11.1% of Natuzzi’s core business revenues; +9.3% over the first three months of 2016. Positive results from the Directly Operated Stores (DOS) were recorded in the UK, Spain, Switzerland, China and the U.S. As part of the retail expansion programme, Natuzzi opened three new DOS; in Paramus, NJ (U.S.), Zaragoza (Spain) and Shanghai (China). It also acquired three stores were in Mexico from a long-standing local partner for the distribution of Natuzzi products.

Natuzzi's advert campaign