Natuzzi (NYSE:NTZ) Q2 2025 Earnings Call November 20, 2025 10:00 AM ET Company ParticipantsPasquale Natuzzi - Executive Chairman and Interim CEOCarlo Silvestri - CFOPiero Direnzo - Industry RelationsConference Call ParticipantsNone - Analyst 1Operatorand gentlemen, please stand by. Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Natuzzi S.p.A. second quarter 2025 financial results. As a reminder, interested persons can join this conference also via telephone by dialing in the follo ...

Financial Data and Key Metrics Changes - The company reported significant impacts from the Chinese and American markets, with a notable decline in sales due to ongoing tariff conflicts [10][12] - The company closed 77 stores in China while opening 30 new stores, indicating a strategic shift in retail operations [11][14] - The gross margin for the last quarter was reported at 34%, with expectations for improvement post-restructuring [28][30] Business Line Data and Key Metrics Changes - The company is actively restructuring its operations, focusing on optimizing costs and enhancing retail business flexibility [24][25] - New product initiatives and merchandising efforts are being pursued to stimulate brand interest and sales [14][22] Market Data and Key Metrics Changes - The company faced a crisis in the Chinese market, which has historically been a significant area for both distribution and production [12][19] - Despite challenges, the company continues to invest in trade fairs and design shows to maintain market presence and customer engagement [15][20] Company Strategy and Development Direction - The company is committed to investing in new projects and enhancing its brand presence despite facing headwinds [22][30] - A multi-year restructuring plan has been approved to strengthen the capital structure and support operational efficiency [24][25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future growth potential, citing ongoing investments and strategic initiatives [22][30] - The company is focused on achieving profitability through operational efficiencies and improved sales strategies [30][32] Other Important Information - The company has engaged in significant marketing and promotional activities, including participation in international design shows and congresses [15][20] - A credit line of $15 million has been extended by the majority shareholder to support short-term needs and financial stability [23][26] Q&A Session Summary Question: What are the terms of the $15 million credit line? - The credit line is a zero-interest loan aimed at supporting the restructuring plan and ensuring financial stability [26] Question: Can you quantify the value of non-core assets? - The total net asset value is around $70 million, with the tannery valued at $5 million [29] Question: What is the expected gross margin post-restructuring? - The goal is to improve gross margins through operational efficiencies and increased sales [30][31] Question: What are the internal goals for annual run rate in commercial revenue? - The company is in a startup phase for commercial contracts, with expectations for growth as more projects are developed [34][35] Question: Any updates on the permanent CEO search? - The search is ongoing, with candidates being evaluated for their experience in managing high-end brands and retail operations [37] Question: How have written orders changed since the last quarter? - Management referred to the press release for detailed information on the company's direction and performance [39]