Italian furniture brand Natuzzi reported first quarter 2025 revenue of €78.1 million, down 7.6% from €84.5 million in the same period last year. By ILM.

The decline was attributed to weaker consumer confidence and ongoing geopolitical and economic pressures.

Gross margin fell to 34.1% from 36.9%, primarily due to the continued transition of Natuzzi Editions’ production for the North American market from China to Italy. This shift, aimed at reducing reliance on Chinese manufacturing amid rising trade tensions, temporarily impacted service levels and increased labour costs.

Upholstery and home furnishings sales were down 5.4% in the first quarter in North America to €22.9 million. The decline in Greater China was 3.3% to €5.5 million, while West and South Europe fell 13.6% to €24.9 million.

Emerging Markets had a decline of 8.5% to €11.4 and the Rest of the World was down 5.7% to €10.5 million.

The company recorded an operating loss of €0.8 million, compared to a profit of €0.6 million in Q1 2024. Net finance costs rose to €2.9 million, affected in part by unfavourable currency movements. Overall, Natuzzi posted a net loss of €4.1 million for the quarter.

CEO Antonio Achille said: “The uncertainty surrounding U.S. trade duties poses a significant challenge for the entire industry, especially for companies like ours with deep commercial ties to the U.S. market, as it has created a volatile environment in which consumers and retailers tend to postpone their purchasing decisions.

“In light of persistent economic and geopolitical uncertainty, including the recent escalation of the conflict in the Middle East, we anticipate continued market volatility. We are therefore adopting a disciplined, risk-aware approach in planning for the coming quarters.”