Italian furniture maker Natuzzi reported a narrower operating loss for 2024, driven by cost-cutting efforts and improved margins, despite a dip in annual revenues and a challenging global market. By ilm.

Full-year revenue declined 3% to €318.8 million, down from €328.6 million in 2023. Branded sales, which made up nearly 93% of total revenue, fell slightly to €287.9 million. The company attributed the decline to weaker consumer demand and a slow second half of the year, exacerbated by macroeconomic and geopolitical uncertainties.

Natuzzi posted an operating loss of €6.3 million, improved from a €9.5 million loss in the prior year. Without restructuring charges, the loss would have narrowed to €1 million. The company undertook significant workforce reductions, cutting 638 jobs in 2024, including the closure of its Shanghai plant, as part of a long-term effort to transition to a value-driven model.

Sales from directly operated stores (DOS) increased 4.1% year-over-year to €76.1 million, with strong growth in the U.S. partially offset by strategic store closures in Europe. Franchise store sales and wholesale revenues declined, reflecting a broader shift in distribution strategy.

In the fourth quarter, revenue dropped 10.9% to €74.9 million due to production changes and factory relocations ahead of anticipated U.S. trade tariffs. The quarterly operating loss narrowed to €2.6 million from €7.3 million.

CEO Antonio Achille noted ongoing progress in streamlining operations and integrating design and retail functions into a single commercial platform: “Our strategic focus on value creation is starting to show through improved efficiency and better margins.”