Natuzzi (NTZ) Q1 2026 earnings summary

Executive summary

• First quarter 2026 revenue was €59.5 million, down 23.8% year-over-year, reflecting weak consumer demand, geopolitical instability, U.S. tariffs, and a soft housing market.

• Gross margin declined to 32.9% from 34.1%, with an operating loss of €2.0 million and a net loss of €4.7 million.

• Internal restructuring is underway, including reducing Italian plants, relocating production to Romania, and a voluntary exit program with 120 employees.

• Received a binding offer for the sale of an industrial asset, potentially transferring up to 40 employees.

Financial highlights

• Total net sales fell to €59.5 million from €78.1 million year-over-year, with gross profit at €19.6 million, down 26.5%.

• Operating expenses decreased to €21.6 million (36.3% of revenue) from €27.4 million (35.1%).

• Net finance costs remained stable at €2.9 million.

• Cash position at March 31, 2026 was €13.8 million, down from €20.3 million at year-end 2025.

Outlook and guidance

• Management expects restructuring actions, including production relocation and cost reductions, to improve margins and operational efficiency in the second half of the year and beyond.

• Confidence expressed in the foundation for sustainable and profitable growth through commercial transformation and operational discipline.

• Store traffic and written orders remain below expectations, with continued market headwinds anticipated.