Natuzzi Slashes Loss in 2016 Despite 6.4% Sales Drop

March 31, 2017  by Larry Thomas in Economic News, Industry   

Worldwide sales totaled 457.2 million Euros, or about $493.2 million, in 2016, down from 488.5 million Euros, or about $526.9 million, in 2015.

The loss totaled 6.1 million Euros, or about $6.58 million. That was well below the 2015 loss of 16.5 million Euros, or about $17.8 million.

Gross margin improved to 34.3% from 31.6% in 2015.

The company said its largest top-line hit came in its Softaly private-label division, which registered a 10.6% sales decline from 2015. However, Natuzzi officials said the decline was due largely to "the difficulties experienced with one of our major customers in North America." 

Not including this customer, which the company didn't name, Softaly sales "would have shown a significant increase in revenues," officials said.

The company said sales from its company-owned retail stores, which feature the upper-end Natuzzi Italia line, shot up 39% due to several store openings. Same-store sales 6.9%.

Natuzzi retail stores in Spain, China and the United States, where it has nine stores, showed sales increases. 

"The company continues its actions on costs and efficiency to lay the foundations for growth," said founder and CEO Pasquale Natuzzi. "We will continue to follow our vision and strategy for the future aggressively based on two parallel paths to gain new market share: Natuzzi Branded Retail Business and private label business. In pursuing the growth, Natuzzi will leverage on the unique and global sourcing and commercial platform we have been building for the last six decades.”

For the fourth quarter of 2016, sales fell 5.4% to 124.6 million Euros, or about $134.4 million. The company recorded net income of 500,000 Euros, or about $539,300. In the final quarter of 2015, net income was 1.9 million Euros, or about $1.94 million.