Natuzzi Navigates Luxury Furniture Slump: Restructuring and Sustainability as Key to Recovery

NEW YORK, NY – November 19, 2025

Natuzzi S.p.A., the renowned Italian design and luxury furniture company, today announced its second quarter and first half 2025 financial results, revealing a challenging period marked by declining sales and profitability. While the broader luxury furniture market exhibits growth, Natuzzi faces headwinds from macroeconomic pressures, supply chain disruptions, and shifting consumer preferences. The company is responding with a comprehensive restructuring plan centered around cost reduction, production flexibility, and a renewed emphasis on its ‘Made in Italy’ heritage, alongside a continued commitment to sustainability.

Financial Performance and Market Context

Natuzzi reported a 7.2% decline in second-quarter sales, reaching €78.3 million, and a steeper 5.7% decrease in first-half sales, totaling €156.4 million, compared to the same periods last year. The company posted a net loss of €6 million for Q2 and €10.1 million for H1 2025, a significant widening from the losses reported in 2024. The decline in profitability is attributed to a combination of factors, including lower order intake, increased production costs—partly related to shifting production of the Natuzzi Editions line from China to Italy to avoid U.S. tariffs—and unfavorable currency fluctuations.

Despite the challenges, the global luxury furniture market continues to grow, projected to reach nearly $39 billion by 2034. However, this growth is unevenly distributed, with Asia-Pacific leading the way and Europe remaining a dominant force. Competition is fierce, with established European brands and emerging players vying for market share. “The luxury consumer is increasingly discerning,” notes an industry analyst. “They’re looking for quality, craftsmanship, and brands that align with their values.”

Restructuring for Resilience

In response to the unfavorable financial performance, Natuzzi has unveiled a comprehensive restructuring plan aimed at restoring profitability and long-term growth. The plan focuses on several key areas. First, the company intends to aggressively cut fixed costs through streamlining operations and optimizing its cost structure. Second, it aims to enhance production flexibility by investing in new technologies and processes. Third, Natuzzi plans to divest non-strategic Italian assets to free up capital for reinvestment. Finally, the company is seeking to strengthen its capital structure and is in discussions with its majority shareholder for a €15 million credit facility, which could be converted into equity.

The restructuring is a critical step toward stabilizing the company and positioning it for future success. However, it won’t be without challenges. “The restructuring process is never easy,” cautions a financial consultant specializing in the furniture industry. “It requires difficult decisions and a willingness to adapt to changing market conditions.” The company is also searching for a new CEO to lead the turnaround, signaling a desire for fresh leadership during this critical period.

'Made in Italy' and the Value of Craftsmanship

Natuzzi’s commitment to ‘Made in Italy’ craftsmanship remains a central pillar of its brand identity. The company emphasizes the use of high-quality materials, skilled artisans, and traditional manufacturing techniques. While this approach comes at a higher cost, it allows Natuzzi to differentiate itself from competitors and appeal to discerning consumers who value authenticity and exclusivity.

“Consumers are increasingly interested in the story behind the products they buy,” states a design expert. “They want to know where things are made, who made them, and what materials were used.” Natuzzi's focus on Italian craftsmanship resonates with this trend, offering a compelling narrative of quality, heritage, and artistry. The shift of production for Natuzzi Editions from China to Italy is a testament to this commitment, despite the short-term impact on margins.

However, maintaining ‘Made in Italy’ production in a globalized world requires continuous innovation and adaptation. Natuzzi is investing in new technologies and processes to improve efficiency and reduce costs while preserving the quality and craftsmanship that define its brand.

Sustainability as a Competitive Advantage

Natuzzi’s commitment to sustainability is another key differentiator. The company holds several internationally recognized certifications—including ISO 9001, 14001, 45001, and FSC® Chain of Custody—demonstrating its dedication to environmental responsibility, workplace safety, and responsible forest management. This commitment is increasingly important to consumers, who are becoming more aware of the environmental and social impact of their purchasing decisions.

“Sustainability is no longer a niche trend; it’s a mainstream expectation,” explains a sustainability consultant. “Consumers are willing to pay a premium for products that are made ethically and sustainably.” Natuzzi’s certifications and sustainable practices provide a competitive advantage, attracting eco-conscious consumers and enhancing its brand reputation.

The company is also exploring innovative materials and manufacturing processes to reduce its environmental footprint. This includes using recycled materials, reducing waste, and minimizing energy consumption. Natuzzi’s commitment to sustainability aligns with the growing demand for eco-friendly luxury goods and positions the company as a leader in responsible manufacturing.