Natuzzi sees no light, as it waits for reshoring to Italy to bear fruit. Further explanation was provided in the first quarter 2025 financial results of the Apulian upholstered/furniture multinational, which explained that sales were negatively affected (once again) by the negative combination of U.S. duties and war tensions in the markets.
Natuzzi sees no light
Natuzzi S.p.A. published a report on March 31, 2025 showing sales of 78.1 million euro, down from 84.5 million euro for the same period of 2024. The sales’ decline in the North American market amounts to -5.4%, -3.3% in the Chinese region, and -13.6% in Europe, compared to the first quarter 2024. Heavy numbers, which Natuzzi aims to counter with new managers and the presentation, especially in the Chinese market, of collections created for the Salone del Mobile. Turnover in Western and Southern Europe, according to the analysis Natuzzi’s report, reflects a generalized difficult macroeconomic situation, especially for some mature European markets, as well as the loss of consumer disposable income due to high interest rates and inflation recorded in 2024.
Geographic differences
In North America, the slight increase in sales of own-brand products was offset by the performance of non-branded products. Emerging markets, particularly in Eastern Europe and the Middle East, remain held back by deteriorating international relations and ongoing regional conflicts. In China, consumer caution tied to purchasing durable goods, along with a weak housing market, aren’t helping the purchase of furniture and sofas.
“Operation reshoring”
America remains a strategic priority for Natuzzi: to address this market, a new sales organization has been launched, headed by Justin Christensen, who comes from 25 years of experience in the fashion world (Brioni and Ralph Lauren), and for HR, overseen by Sharri McIntyre, formerly in corporate HR at Louis Vuitton. CEO Antonio Achille highlighted the completion of the transfer of Natuzzi Editions production for North America from China back to Italy, following the closure of the Shanghai plant. The move aims, according to Natuzzi’s board of directors, to reduce costs related to customs duties, increase the use of Italian plants, and contain excess labor costs. However, a transition has resulted in delivery delays and an initial drop in service levels. An improvement program is underway to increase quality, efficiency and sustainability of Italian production.
Significant changes
“In the first quarter of 2025, we made significant changes to production allocations for Natuzzi Editions, while Natuzzi Italia has always been entirely produced within our industrial district in Italy”, Achille recalls, “Natuzzi Editions, entirely designed by our Style Center in Puglia, is being manufactured through a diversified network of production centers, mainly located in China, Romania and Brazil. Allocation decisions are based on several criteria, including production costs, customs duties, logistics costs and delivery times”. The Quanjiao plant will now exclusively serve the Chinese market. A strategic decision, having no products from there going to the U.S. market, useful in light of the Duties imposed by Trump.
The words of the CEO
“The decision to transfer the production of Natuzzi Editions to our Italian plants also took into account their lower saturation, compared to our Romanian plant”, Natuzzi’s CEO stressed, “as we were determined to avoid labor costs associated with unused production capacity in the Italian plants, which would have had a particularly negative impact on our results. Consequently, starting at the end of 2024, we began to transfer the production of Natuzzi Editions for the North American market to Italy, completing the transition in the first quarter of 2025″.
The situation according to Pasquale Natuzzi
In 2024, Natuzzi returned to the Salone del Mobile in Milan, “after a five-year absence due to the pandemic and post-pandemic period”, Pasquale Natuzzi points out. “We presented the new Natuzzi Editions collections, and, during Milan Design Week, we also presented the Natuzzi Italia “Comfortness” and “Circle of Harmony” collections, which reflect our evolution into a global lifestyle brand, true to our tradition. Natuzzi Italia collections have been enriched through collaborations with international designers such as Andrea Steidl, Karim Rashid, Marcantonio and Mauro Lipparini“.
Photos from Natuzzi
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