P letter chain full#

Our branded business continues gaining share on our total business: today it represents 90% of our total business, compared to 84% of one year ago. We will continue working to bring our backlog to a normal level also in the coming weeks and months. This allowed us to improve our service level to final customer: in August, 86% of the overall orders were delivered within the date requested by customers. The order portfolio at the end of June was reduced at €102.0 million from €114.4 million at the beginning of the year. This has led them to postpone purchases of “new stock” products, while they are focusing on de-stocking.Īs a result, since April we are reporting a slow-down in our orders, chiefly from the Wholesale channel.Īlso in response to slower new demand, during the quarter, we focused on reducing our backlog to improve the service level and provide customer with a shorter and more reliable delivery time. In our retail, in fact, we see in general lower traffic and consumers being more prudent in closing an order.Īt the same time, also our retail partners, especially in North America, have in general witnessed a softer demand versus a very strong 2021. Rising inflation, higher interest rates, prospects for global economic slowdown, persisting high energy costs and geopolitical uncertainty continue to impact our industry, globally.Īfter a first part of the year marked by a stronger than expected demand for our products, we have seen a softer trend in the business since April. The overall context in which we operate remains challenging. In addition, 18 points of sales in China were closed from the end of March through the end of May.

P letter chain full#

The impact in terms of missed production can be estimated in €15 million for the quarter, as the factory was completely closed from the end of March till the beginning of May when it resumed its operations albeit at 20% of its capacity and only during the first week of June the factory was allowed to run at full capacity.

Our Chinese factory produces Natuzzi Editions chiefly for the APAC and North America Regions. Indeed, as previously anticipated during the second quarter our operations in China were affected by the strict lockdown measures imposed by the local Chinese authorities for most of the quarter in response to the resurgence of COVID-19 in some regions, including Shanghai where our own factory is located. We are onboarding the key management team that will support the CEO in the transformation of the Group.”Īntonio Achille, CEO of the Group commented: “ In a quarter characterized by external adverse conditions, we were able to deliver the sixth consecutive increase in sales in addition to a positive operating result. This market context encourages us to accelerate the transformation of our Group, that is on the way, to become more agile and cost effective.

Since April, the business environment has been more challenging because of multiple external factors, such as the high level of inflation globally, the war in Europe, the continuing presence of COVID-19. Pasquale Natuzzi, Chairman of the Group commented: “We have been able to deliver sales above 2021 in the first part of the year, notwithstanding the closure of our Chinese factory which impacted negatively the second quarter. (NYSE: NTZ) (“we”, “Natuzzi” or the “Company” and, together with its subsidiaries, the “Group”), one of the most renowned brands in the production and distribution of design and luxury furniture, today reported its unaudited financial information for its second quarter and first half ended June 30, 2022. SANTERAMO IN COLLE, Bari, Italy-( BUSINESS WIRE)-Natuzzi S.p.A.