Financial Data and Key Metrics Changes - The company has improved its gross margin this quarter, surpassing levels recorded in the first two quarters of the year, attributed to a more favorable sales mix [4][5] - Sales of Natuzzi Italia grew by 18% compared to the third quarter of last year, while sales of unbranded products decreased by 20% [5] Business Line Data and Key Metrics Changes - The company is focusing on supporting branded sales that offer higher margins, while unbranded products, which are not core to the business, have seen a decline [5] - SG&A costs remain high relative to the current revenue base, despite decreases in wages and transportation expenses this quarter [5][6] Market Data and Key Metrics Changes - Foot traffic in stores, particularly in the United States and Europe, continues to lag, although there are improvements in conversion rates [4] - Consumer confidence remains weak, impacting overall sales despite marketing investments [4][19] Company Strategy and Development Direction - The company plans to rationalize its factory operations in Italy, reducing production from six factories to three, which requires government and union agreements [12] - The company is committed to reducing costs while improving margins and sales, with a focus on enhancing consumer confidence [19][20] - The company is investing in international trade events and enhancing in-store experiences to attract customers [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging business environment and the impact of geopolitical situations on consumer confidence [4][19] - There is a commitment to work on cost reduction and improving margins, with expectations for better sales in 2026 compared to 2025 [19][20] Other Important Information - The company is actively pursuing government aid to improve quality and reduce transformation costs at its Italian factory [6] - The company is treating its contract trade division as a startup, with a conservative forecast for 2026 revenue between EUR 5 million and EUR 10 million [26][27] Q&A Session Summary Question: What are the expectations from the upcoming meeting with the government? - Management is working on a restructuring plan that includes rationalizing factory operations and potentially reducing the workforce with government assistance [11][12] Question: Will the company be profitable at current revenue levels? - The target is to achieve profitability around EUR 28 million to EUR 29 million per month, with various measures being discussed to avoid cash burn [16][17] Question: Update on the commercial division's progress? - The company is making significant investments in the trade contract business, with ongoing projects in Dubai and Jerusalem, but forecasts for 2026 are conservative [22][24][26] Question: Status of the CEO selection process? - The decision on the new CEO is ongoing, with interviews being conducted over weekends, and management hopes to provide updates soon [28]