Italian furniture group Natuzzi reported first quarter 2026 revenue of €59.5 million, down 23.8% year-on-year from €78.1 million, as weak consumer demand, geopolitical instability and a soft housing market continued to weigh on the business.
Gross margin declined to 32.9% of revenue from 34.1% a year earlier, primarily due to lower delivered sales and less efficient absorption of fixed industrial costs. However, raw material consumption improved to 33.2% of revenue from 35.8%.
Natuzzi reported an operating loss of €2 million, compared with €0.8 million in the prior-year period, while net loss widened to €4.7 million from €4.1 million. Results included €6.6 million of other income, including a €6 million capital gain from the disposal of an Italian photovoltaic asset. Higher trade duties on goods manufactured in Europe and delivered to North America added €1.2 million to selling expenses.
Cash and cash equivalents stood at €13.8 million on March 31, 2026, down from €20.3 million at December 31, 2025. The company used €13.8 million of cash in operating activities, partly offset by €7.8 million from investing activities, including €7.1 million from the photovoltaic asset sale.
Restructuring
Natuzzi has begun an industrial reorganisation aimed at reducing its cost base and aligning production with current demand. Production in Italy has been concentrated in two plants since the beginning of July, compared with five previously, while Natuzzi Editions production serving North America is being relocated from Italy to Romania. The company said 120 employees have signed expressions of interest under voluntary exit agreements.
The group has also received a binding and irrevocable offer for the sale of an industrial asset, with the proposed transaction potentially transferring around 40 employees to the buyer. Natuzzi is reviewing its retail network through targeted disposals, early closures and lease renegotiations, while planning 18 new international store openings during 2026.
Outlook
Natuzzi said store traffic and written orders remain below management expectations, with the challenging market environment continuing to discourage consumer demand. The company is pursuing a negotiated crisis settlement procedure in Italy, with an independent expert appointed by the Chamber of Commerce to facilitate negotiations with stakeholders and monitor restructuring measures.
The company also warned that its ADRs could face NYSE delisting proceedings if its average global market capitalisation falls below US$15 million over a consecutive 30-trading-day period. As of August 4, Natuzzi’s market capitalisation was US$14.6 million, with a 30-day average of US$17.6 million.
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