Natuzzi Reports 1st Quarter Sales, Income Gain

May 24, 2006  by in UnCategorized   

By Home Furnishings Business in Leather Upholstery on May 2006 Italian leather upholstery specialist Natuzzi reported first quarter net sales of $226.5 million for the quarter ended March 31, compared with the $218.4 million reported during the first quarter of 2005.

Net earnings for the quarter were $8.2 million, compared to a net loss of $4.6 million in the first quarter of 2005.

During the first three months of 2006, upholstery net sales were at $201.4 million, up from $192 million reported for the same period last year. Net sales in the Americas were $76.8 million for the quarter, compared with $78.5 million reported in the same period last year.

The company reported that its sales to the Natuzzi-owned chain of Divani & Divani by Natuzzi stores and Natuzzi stores were $41.2 million, as compared to $39.3 million reported a year ago. During the quarter, the company opened six stores and closed 16 bringing the total number of stores to 280 at the end of the quarter.

“The positive performance achieved in the first quarter 2006 is an encouraging sign for the near future,” said Pasquale Natuzzi, chairman and chief executive officer. “However, we are aware that rising energy prices, the current unfavorable level of the Euro against the U.S. dollar, as well as upward trending interest rates, will continue to challenge consumers’ discretionary spending and, as a consequence, the furniture industry. In consideration of this we consider the current restructuring process of our operations and the improvement of retail activities fundamental for the competitiveness of the company.”