1Q 2026: Highlights<\/span><\/b><\/p>\n SANTERAMO IN COLLE, Bari, Italy–(BUSINESS WIRE<\/a>)– \nPasquale Natuzzi, Chairman and Chief Executive Officer ad interim<\/i> of the Group, commented: \u201cOur results of operations continue to reflect a persistently challenging market environment, marked by geopolitical instability, weak consumer confidence and a soft housing market. In this context, the Group\u2019s current business infrastructure is no longer sustainable under prevailing demand conditions. Accordingly, we have launched a comprehensive review aimed at significantly reducing the Group\u2019s cost base and aligning its overall structure with current demand levels, thereby supporting more efficient production planning and margin improvement. At the same time, we continue to rationalize our product offering, strengthen our commercial and business development capabilities in strategic markets, and position Natuzzi to capture future opportunities, particularly in Emerging Markets and Trade & Contract.<\/i><\/p>\n The Company has already taken steps to streamline its operations, with a particular focus on its Italian manufacturing footprint. Since the beginning of July, production has been concentrated in two plants, compared with the five facilities previously in operation, with the aim of reducing fixed costs and improving operational efficiency. At the same time, the Company has initiated the transfer of Natuzzi Editions production lines serving the North American market from Italy to Romania, in order to better align margins with the positioning of the brand. These actions form part of the Company\u2019s restructuring plan are intended to contribute to reducing the Group\u2019s cost base and supporting long-term sustainability of the business.<\/i><\/p>\n Consistent with our strategy, we recently received a binding and irrevocable offer from a third-party buyer for the sale of a local industrial asset. The proposed transaction also contemplates the transfer of approximately 40 employees from the Company to the buyer.<\/i><\/p>\n The Company continues to review its store network with the objective of optimizing its retail footprint and reducing losses through targeted store disposals, selective early closures, and lease renegotiations. At the same time, Natuzzi is consolidating its international retail presence through 18 new openings this year, including the recently inaugurated Natuzzi Italia store in Beijing.<\/i><\/p>\n In parallel, Natuzzi continues to maintain a constructive dialogue with the Ministry of Enterprises and Made in Italy (MIMIT) and local authorities to address labor-related challenges at the Group\u2019s Italian operations. Potential measures include social safety net provisions funded by the Government, reduced working-hour schedules, outplacement initiatives, and voluntary incentive-based exit programs. In this regard, 120 employees have signed an expression of interest under the Company\u2019s voluntary incentivized exit program.<\/i><\/p>\n Our priority remains clear: returning gradually to operational profitability through a more agile structure. We believe this to be necessary for protecting the Group\u2019s assets and working toward improved financial sustainability. We remain committed to working closely with our shareholders, partners, employees, and all stakeholders as we navigate this phase of transformation.\u201d<\/i><\/p>\n *****<\/b><\/p>\n \nIn light of ongoing business and market challenges, including geopolitical developments, trade tariffs and labor-related matters, the Company\u2019s American Depositary Receipts (the \u201cADRs\u201d) have recently been under significant pressure.<\/p>\n \nAs of August 4, 2026, the Company\u2019s market capitalization and its average market capitalization over a consecutive 30 trading-day period were $14.6 million and $17.6 million, respectively.<\/p>\n \nIf the Company\u2019s average global market capitalization were to fall below $15 million over a consecutive 30 trading-day period, the New York Stock Exchange (the \u201cNYSE\u201d) would commence delisting proceedings pursuant to Section 802.01B of the NYSE Listed Company Manual. Accordingly, there can be no assurance that the Company\u2019s ADRs will continue to be listed on the NYSE due to the Company’s non-compliance with one or more applicable NYSE continued listing standards.<\/p>\n *****<\/b><\/p>\n Update on the negotiated crisis settlement procedure (\u2018Composizione Negoziata della Crisi<\/i>\u2019, or CNC) \u2013 <\/b>As part of the negotiated crisis settlement procedure initiated by Natuzzi S.p.A., the Chamber of Commerce has appointed Elbano de Nuccio as independent expert.<\/p>\n \nMr. de Nuccio is President of the Italian Council of Chartered Accountants and Professor of Business Economics at LUM University (Libera Universit\u00e0 del Mediterraneo). The appointment forms part of the Company\u2019s broader out-of-court restructuring framework previously disclosed, aimed at safeguarding business continuity and progressively restoring financial and economic equilibrium.<\/p>\n \nIn his capacity as independent expert, Mr. de Nuccio will facilitate dialogue between the Company and its stakeholders, support the negotiation process, and monitor the implementation of agreed restructuring measures.<\/p>\n \nThe procedure will continue under the oversight of the relevant governmental authorities, with the objectives of seeking to support production continuity and facilitate the Company’s restructuring process.<\/p>\n *****<\/b><\/p>\n Update on the Shareholders\u2019 meeting<\/b> – At the Annual General Meeting held on June 30, 2026, the shareholders approved the Company\u2019s stand-alone financial statements for the fiscal year ended December 31, 2025, and acknowledged the 2025 consolidated financial statements of the Natuzzi Group, that was authorized for issue by the Company\u2019s Board of Directors at a meeting held on May 14, 2026.<\/p>\n \nAt the same shareholders\u2019 meeting, the Company\u2019s shareholders ratified the resignation of Mr. Pietro Labriola as non-executive director.<\/p>\n \nLastly, with reference to the extraordinary part of the shareholders\u2019 meeting, the Company\u2019s shareholders resolved not to proceed with the reduction of the Company\u2019s share capital due to losses pursuant to Article 2446 of the Italian Civil Code, having availed themselves of the option provided under the rules governing the negotiated crisis settlement procedure to suspend the obligations arising thereunder.<\/p>\n *****<\/b><\/p>\n \nPasquale Junior Natuzzi, son of the Company\u2019s founder Pasquale Natuzzi, has been appointed Chief Commercial Officer of the Natuzzi Group, reporting directly to Mr. Natuzzi, who continues to serve as Executive Chairman of the Board of Directors and CEO ad interim<\/i>.<\/p>\n \nWith extensive experience across both commercial and creative functions – having previously served as Chief Brand Officer of Natuzzi Italia and as Chief Marketing and Creative Officer – Pasquale Junior brings a thorough understanding of the Group and its core values. He will also retain the role of Chief Project Division Officer, overseeing the development of Natuzzi\u2019s Trade & Contract division, working with designers and real estate developers.<\/p>\n *****<\/b><\/p>\n 2026 – FIRST QUARTER<\/span><\/b><\/p>\n CONSOLIDATED REVENUE<\/b><\/p>\n \nConsolidated revenue for 1Q 2026 amounted to \u20ac59.5 million, compared to \u20ac78.1 million in 1Q 2025, mainly as a result of a persistently challenging business environment.<\/p>\n \nSales from upholstered and other home furnishings products amounted to \u20ac57.7 million, compared to \u20ac75.3 million in 1Q 2025.<\/p>\n \nRevenues from upholstered and other home furnishings products are hereafter described according to the main dimensions of the Group\u2019s business: i) Branded\/Unbranded Business; ii) Key Markets; iii) Distribution.<\/p>\n I) Branded\/Unbranded business<\/b><\/p>\n \nThe Group operates in the branded business (with Natuzzi Italia<\/i>, Natuzzi Editions <\/i>and Divani&Divani by Natuzzi<\/i>) and the unbranded business, the latter dedicated to large-scale distribution.<\/p>\n \nThe table below sets out the contribution of each brand in terms of invoiced sales for 1Q 2026:<\/p>\n \n\u00a0<\/p>\n<\/td>\n 1Q 2026<\/b><\/p>\n<\/td>\n 1Q 2025<\/b><\/p>\n<\/td>\n Delta \u20ac<\/b><\/p>\n<\/td>\n Delta %<\/b><\/p>\n<\/td>\n<\/tr>\n \nNatuzzi Italia<\/p>\n<\/td>\n \n20.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27.7<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-7.3<\/p>\n<\/td>\n \n-26.4%<\/p>\n<\/td>\n<\/tr>\n \nNatuzzi Editions<\/p>\n<\/td>\n \n26.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n34.8<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-8.7<\/p>\n<\/td>\n \n-25.0%<\/p>\n<\/td>\n<\/tr>\n \nDivani&Divani by Natuzzi<\/p>\n<\/td>\n \n8.2<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9.5<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-1.3<\/p>\n<\/td>\n \n-13.7%<\/p>\n<\/td>\n<\/tr>\n \nUnbranded<\/p>\n<\/td>\n \n3.0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.3<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-0.3<\/p>\n<\/td>\n \n-8.7%<\/p>\n<\/td>\n<\/tr>\n Total<\/b><\/p>\n<\/td>\n 57.7<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 75.3<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n -17.6<\/b><\/p>\n<\/td>\n -23.4%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFigures in \u20ac\/million, except percentage.<\/p>\n II) Key Markets<\/b><\/p>\n \nBelow is a breakdown of upholstery and home-furnishings invoiced sales for 1Q 2026, compared to 1Q 2025, according to the following geographic areas.<\/p>\n \n\u00a0<\/p>\n<\/td>\n 1Q 2026<\/b><\/p>\n<\/td>\n 1Q 2025<\/b><\/p>\n<\/td>\n Delta \u20ac<\/b><\/p>\n<\/td>\n Delta %<\/b><\/p>\n<\/td>\n<\/tr>\n \nNorth America<\/p>\n<\/td>\n \n16.9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n22.9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-6.0<\/p>\n<\/td>\n \n-26.2%<\/p>\n<\/td>\n<\/tr>\n \nGreater China<\/p>\n<\/td>\n \n3.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.6<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-2.2<\/p>\n<\/td>\n \n-38.9%<\/p>\n<\/td>\n<\/tr>\n \nWest & South Europe<\/p>\n<\/td>\n \n19.9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n24.9<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-5.0<\/p>\n<\/td>\n \n-20.2%<\/p>\n<\/td>\n<\/tr>\n \nEmerging Markets<\/p>\n<\/td>\n \n9.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-2.3<\/p>\n<\/td>\n \n-20.7%<\/p>\n<\/td>\n<\/tr>\n \nRest of the World*<\/p>\n<\/td>\n \n8.4<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10.5<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-2.1<\/p>\n<\/td>\n \n-19.6%<\/p>\n<\/td>\n<\/tr>\n Total<\/b><\/p>\n<\/td>\n 57.7<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 75.3<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n -17.6<\/b><\/p>\n<\/td>\n -23.4%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFigures in \u20ac\/million, except percentage.<\/p>\n \n* Includes South and Central America, Rest of APAC.<\/p>\n III) Distribution<\/b><\/p>\n \nDuring 1Q 2026, the Group distributed its branded collections in 79 countries, according to the following table.<\/p>\n \n\u00a0<\/p>\n<\/td>\n \nDirect Retail<\/p>\n<\/td>\n \nFOS**<\/p>\n<\/td>\n Total retail stores<\/b><\/p>\n (March 31, 2026)<\/b><\/p>\n<\/td>\n<\/tr>\n \nNorth America<\/p>\n<\/td>\n \n23(1)<\/sup><\/p>\n<\/td>\n \n9<\/p>\n<\/td>\n 32<\/b><\/p>\n<\/td>\n<\/tr>\n \nGreater China<\/p>\n<\/td>\n \n16(2)<\/sup><\/p>\n<\/td>\n \n214<\/p>\n<\/td>\n 230<\/b><\/p>\n<\/td>\n<\/tr>\n \nWest & South Europe<\/p>\n<\/td>\n \n27<\/p>\n<\/td>\n \n91<\/p>\n<\/td>\n 118<\/b><\/p>\n<\/td>\n<\/tr>\n \nEmerging Markets<\/p>\n<\/td>\n \n\u2500<\/p>\n<\/td>\n \n79<\/p>\n<\/td>\n 79<\/b><\/p>\n<\/td>\n<\/tr>\n \nRest of the World*<\/p>\n<\/td>\n \n4<\/p>\n<\/td>\n \n89<\/p>\n<\/td>\n 93<\/b><\/p>\n<\/td>\n<\/tr>\n Total<\/b><\/p>\n<\/td>\n 70<\/b><\/p>\n<\/td>\n 482<\/b><\/p>\n<\/td>\n 552<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n (1)<\/sup> Included 3 Directly Operated Stores (DOS) in the U.S. managed in joint venture with a local partner. Since the Natuzzi Group does not have full control over each of these DOS, we consolidate only the sell-in from such DOS. \nBelow is a breakdown of upholstery and home-furnishings invoiced sales for 1Q 2026, compared to 1Q 2025, according to distribution channels.<\/p>\n \n\u00a0<\/p>\n<\/td>\n 1Q 2026<\/b><\/p>\n<\/td>\n 1Q 2025<\/b><\/p>\n<\/td>\n Delta \u20ac<\/b><\/p>\n<\/td>\n Delta %<\/b><\/p>\n<\/td>\n<\/tr>\n \nRetail DOS<\/p>\n<\/td>\n \n14.6<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n18.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-3.5<\/p>\n<\/td>\n \n-19.6%<\/p>\n<\/td>\n<\/tr>\n \nRetail FOS<\/p>\n<\/td>\n \n23.6<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n30.3<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-6.7<\/p>\n<\/td>\n \n-22.0%<\/p>\n<\/td>\n<\/tr>\n \nContract<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \nN.M.<\/p>\n<\/td>\n<\/tr>\n \nWholesale Gallery<\/p>\n<\/td>\n \n15.3<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n22.2<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-6.9<\/p>\n<\/td>\n \n-31.2%<\/p>\n<\/td>\n<\/tr>\n \nWholesale (Free market)<\/p>\n<\/td>\n \n4.1<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4.7<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n-0.6<\/p>\n<\/td>\n \n-12.2%<\/p>\n<\/td>\n<\/tr>\n Total<\/b><\/p>\n<\/td>\n 57.7<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 75.3<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n -17.6<\/b><\/p>\n<\/td>\n -23.4%<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nFigures in \u20ac\/million, except percentage.<\/p>\n \nN.M. = Not meaningful<\/p>\n GROSS MARGIN<\/b><\/p>\n \nGross Profit as a percentage of revenue (\u201cgross margin\u201d) was 32.9% in 1Q 2026, compared to 34.1% in 1Q 2025. Gross margin was adversely affected primarily by lower delivered sales in the quarter, resulting in a less efficient absorption of industrial fixed costs. Price list adjustments helped mitigate the adverse impact of lower sales volumes on gross margin.<\/p>\n \nDuring 1Q 2026, consumption of raw materials as a percentage of revenue was 33.2%, improving from 35.8% in 1Q 2025.<\/p>\n \nIn 1Q 2026, industrial labor cost was \u20ac16.3 million, or 27.3% of revenue, compared to \u20ac19.1 million, or 24.5% of revenue, in 1Q 2025. Despite the year-over-year reduction in euro terms, mainly concentrated in Italy, labor cost as a percentage of revenue increased due to lower delivered sales.<\/p>\n \n\u201cOther industrial costs\u201d amounted to \u20ac3.9 million, compared to \u20ac4.4 million in 1Q 2025. The decrease was mainly attributable to lower depreciation following the impairment of non-financial assets recognized at the end of 2025, as well as additional cost reductions associated with lower production volumes in 1Q 2026.<\/p>\n OPERATING EXPENSES<\/b><\/p>\n \nDuring 1Q 2026, operating expenses, which include selling expenses, administrative expenses, other operating income\/expenses, and the impairment of trade receivables, totaled \u20ac21.6 million, or 36.3% of revenue, compared to \u20ac27.4 million, or 35.1% of revenue in 1Q 2025.<\/p>\n \nWithin \u2018Other income\u2019, the Company recognized a capital gain of \u20ac6.0 million in 1Q 2026 from the disposal of the photovoltaic asset in Italy, compared with a capital gain of \u20ac1.7 million in 1Q 2025 following the sale of a building in High Point, NC.<\/p>\n \nWithin \u2018Selling expenses\u2019, the Company recorded a \u20ac1.4 million decrease in transportation costs and a \u20ac0.4 million decrease in sales commissions\u2014both reflecting lower revenue\u2014as well as a \u20ac0.1 million decrease in depreciation, following the rationalization of our direct retail network, and a \u20ac0.2 million decrease in salaries, mainly due to cost revisions at the Company\u2019s U.S. commercial subsidiaries. These reductions were partially offset by a \u20ac1.2 million increase in trade duties on goods manufactured in Europe and delivered to North America.<\/p>\n \nWithin \u2018Administrative expenses\u2019, the Company recorded a \u20ac0.5 million decrease in salaries, a \u20ac0.2 million decrease in depreciation, following the impairment of non-financial assets recognized at the end of 2025, as well as a generalized reduction in discretionary expenses.<\/p>\n NET FINANCE INCOME\/(COSTS)<\/b><\/p>\n \nNet Finance costs were \u20ac2.9 million, the same as in 1Q 2025.<\/p>\n CASH FLOW AND BALANCE SHEET<\/b><\/p>\n \nAs of March 31, 2026, we held \u20ac13.8 million in cash, compared to \u20ac20.3 million as at December 31, 2025. The difference in cash during the period is the result of the following:<\/p>\n \n\u2500 Net cash used in the operating activities of -\u20ac13.0 million; \nAs of March 31, 2026, we had a net financial position before lease liabilities (cash and cash equivalents minus <\/i>long-term borrowings minus <\/i>bank overdraft and short-term borrowings minus<\/i> current portion of long-term borrowings) of -\u20ac28.3 million, compared to -\u20ac32.2 million as of December 31, 2025.<\/p>\n \nOn March 31, 2026, the Company\u2019s majority shareholder formally expressed its irrevocable intention to convert the two loans made in favor of Natuzzi S.p.A., amounting to \u20ac2.5 million and \u20ac10.0 million and granted, respectively, in 2024 and 2025, into a capital contribution to be allocated to a future share capital increase, with the aim of strengthening the Group\u2019s equity position.<\/p>\n \n******<\/p>\n\n
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<\/b>\u2014 reduction in the number of operating plants in Italy;
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<\/b>\u2014 120 employees signed an expression of interest under voluntary exit agreements;
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<\/b>\u2014 relocation of Natuzzi Editions production from Italy to Romania.<\/b><\/li>\n
\nNatuzzi S.p.A. (NYSE: NTZ) (\u201cwe\u201d, \u201cNatuzzi\u201d or the \u201cCompany\u201d and, together with its subsidiaries, the \u201cGroup\u201d), one of the most renowned brands in the production and distribution of design and luxury furniture, today reports its unaudited financial information for the first quarter ended March 31, 2026.<\/p>\n\n
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(2) <\/sup>All directly operated by our joint venture in China. Since the Natuzzi Group owns a 49% stake in the joint venture and does not control it, we consolidate only the sell-in from such DOS.
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* Includes South and Central America, Rest of APAC.
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** FOS = Franchise stores managed by independent partners.<\/p>\n\n
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\u2500 Net cash provided by investing activities of +\u20ac7.8 million, which includes proceeds of \u20ac7.1 million from the sale of the photovoltaic assets located in Italy, and \u20ac0.6 million of government grants;
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\u2500 Net cash used in financing activities of -\u20ac2.4 million, mainly to repay lease liabilities;
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\u2500 Effect of movements in exchange rates on cash equal to +\u20ac0.6 million;
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\u2500 Net cash from bank-overdraft repayable on demand of \u20ac0.5 million.<\/p>\n
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