Italian furniture manufacturer Natuzzi has reported an uptick in fourth quarter sales, while full year revenues declined.
According to its latest trading update for Q4 2025, total net sales amounted to €77.5 million, up 3.4% from €74.9 million in Q4 2024.
Sales in North America fell 6.7% to €19.9 million, while China revenues rose 26.9% to €4.9 million. As for West & South Europe, sales rose 2.6% to €25.7 million and Rest of the World sales increased 2.1% to €10.7 million. The emerging markets division saw revenues rise 17.9% to €14.2 million.
Gross margin at 30.2% of revenue, compared to 38.1% in Q4 2024, primarily impacted by the planned production shift of Natuzzi Editions from China to Italy.
Loss for the period resulted at €15.5 million, compared to a loss of €3.9 million in Q4 2024.
Natuzzi said that store traffic and written orders “continue to remain below expectations, due to persistent geopolitical uncertainty and macroeconomic headwinds that continue to discourage consumer demand and, consequently, sales”.
As for the full year, total sales for the year ended 31 December 2025 resulted at €308.2 million, down 3.3% from €318.8 million in 2024. Pre-tax losses stood at €29.6 million, widening from a loss of €14.7 million.
Pasquale Natuzzi, Chairman and Chief Executive Officer ad interim of the Group, commented: “The global furniture market is navigating through one of its most challenging periods in the last twenty years. Trade tariffs, geopolitical instability, and softening consumer demand in key markets have placed the furniture sector under significant pressure.
“Furthermore, the escalation of the conflict involving the US, Iran and Israel this past March has introduced new uncertainties, which may likely lead to further discouraging consumers’ demand for semi-durable goods.
“Full-year results, which include asset impairments, reflect both the uncertainty surrounding the current business environment, and Company specific challenges. Notably, unexpected U.S. trade tariffs imposed on EU following the production shift of Natuzzi Editions from China to Italy offset the anticipated benefits of this relocation
To navigate these challenges, the Company has prepared a strategic plan aimed at streamlining our cost base and pursuing long-term sustainability. This plan reflects a necessary evolution of our organizational model as it includes the optimization of our manufacturing footprint in Italy to realign production capacity with current market demand and drive structural operational efficiency.
“This process will be further supported by overhead restructuring actions at HQ and certain commercial subsidiaries, the review of our direct retail network, the strategic outsourcing of selected non-core activities, tight control and revision of discretionary spending.
“In line with our strategy to enhance operational flexibility and focus on core business, we completed the sale of an asset earlier this year. The financial impact of this transaction will be reflected in our first quarter results for 2026.
“We remain committed to further optimizing our portfolio and are evaluating the potential divestiture of additional non-core assets in Italy that no longer align with our long-term strategic objectives.”
