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| Statement |
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| Also this quarter has been positive from the operation |
| And hopefully, that will be also translating in a positive outcome from that geography that is still witnessing a very, very, very conservative consumer after the pandemic |
| We are building a business case, which privilege resilience and solidity of our fundamentals |
| I would say that when I step back and the real estate [talent, the store design] (ph) against, let's say, a lot of our legacy locations, I think we're very proud of the work |
| So we feel good about the direction that with our partner, we're giving to the business |
| If, as we discussed before, some of those non-recurring sales of strategic asset happen that will provide a strong acceleration |
| And that resulted in the backlog that during 2022 helped us to keep busy the top-line |
| But I think we believe we've built great additions to the US fleet here |
| We will have a better profit on our asset and cash conversion |
| So that's to say the strength of the brand |
| And this, again, is a proof that our model is resilient even under extreme circumstance like the one we're witnessing |
| I must admit and be transparent that we see -- we do still see a significant opportunity in improving our furnishing because it's a recent, let's say, direction |
| This means in including point, which is a really iconic location with a fantastic heritage designed by Marubeni, which is still one of the most famous and respected architect still living of 1,200,000 square feet |
| I think we should be celebrating our capacity of increasing resilience and managing cost because this has been achieved during a period of unsaturated capacity, and we achieved higher marginality, which is not obvious, increasing by some 10 percentage points compared to 2019 |
| Just to name the last addition, we started a collaboration with a gentleman called Brian Waidelich which come from Mitchell Gold and Bob Williams, that didn't make it through this crisis, but it was definitely a very good retailer |
| And we're definitely seeing that our stores ramp to fully mature and typically year two is stronger than year one, both historically and what we've seen over the last couple of years |
| I believe for Natuzzi that it will be always stronger |
| So I believe that directionally give you a sense that we are working to strengthen our operating model and to lower our breakeven, so that when growth come back, and we are likely working for that, and have no doubt that will happen |
| So you can imagine that, that can provide a significant acceleration of turbo boost |
| We opened a really fantastic store in Manhasset |
| As you can imagine, we're really focusing on ensuring resilience and the strength of our balance sheet and our cost structure |
| What we will do is those proceeding materialize? Again, a very consistent journey |
| Well, that's -- it's helpful to just understand the cadence of revenue recognition and that we have a nice opportunity in front of us |
| So I believe that is still an area of opportunity |
| So I use this as an example to ensure that we are working to make our business more efficient |
| Clearly, the brand is much larger than today's revenue |
| As you, of course know, the heritage and the strength of Natuzzi is in the living room in the poster where Mr |
| I think it's too early to say if that is structural, let's say, turning point, but I believe it's encouraging to see that now for 19 weeks, we are reducing that |
| Another element, which I believe is important, is to testify that the marginality, so our gross margin has been at 35.4%, which is again above the average over the last three years |
| When we open a new store, there is a very careful process, which include a geo-market study to make sure that the catchment area, the agency in terms of other brands are really what constitute a solid base for operating a store |
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| As you've seen, sales in the third quarter have been significantly below what we reported in the last year same period and 15% below what we reported in 2019 that we keep using as a parameter of comparison given the seasonality of the last cycle |
| As you will remember, due to the unprecedented spike in demand in the aftermath of the COVID, we struggled as all the industry did in fulfilling the demand |
| So this is, I would say, the highlight of a quarter where, as everybody in the industry, we are still witnessing a soft demand |
| So the market is still challenging |
| We have been also affected |
| The sum of those, let's say, element of the equation, led to loss -- operating loss in the quarter of EUR1.3 million |
| I would say not only the furniture, but we say all the branded even high end and luxury, they are being very, let's say, gloomy this year |
| For instance, that loss of EUR1.3 million reported achieving EUR74.9 million in sales compared with a loss of EUR8.7 million reported in 2019 but with EUR88.1 million sales |
| And that interrupted a cycle of 15 months where the fresh orders were below the same period of the previous year |
| This is -- and I will spot some more, a confirmation that despite the unprecedented times we live, we are not deviating from our long-term strategy, which is to become a brand-wide company |
| This comes as a consequence of our restless focus on pricing discipline and cost management, which compensated to a large extent the disadvantage we reported in absorbing the fixed cost with lower volumes because that's absolutely what happened with our factory |
| And then the last question, Antonio, if -- you called out specifically that written orders have flipped to positive versus the last 15 months |
| If we need to sell financing, those openings, leaving apart way to increase our capital available apart from selling non-strategic assets, of course, the speed of development is lower |
| It's always in circumstances where the market still for everyone, and I believe you read the press release of our peers, is not providing obvious sign of recovery |
| This year, we are losing EUR1.3 million with EUR14 million less |
| The second key message for me is that we are not deviating from our long-term strategy, which is focusing on branded retail and accelerating the restructuring environment |
| Of course, is below what we report in previous year because as I mentioned that a few times, the balance between liquidity and fixed asset has been moving more in direction of fixed assets because they invested in inventory as, which we are now managing, but the group has been accruing cash |
| So that means that in 2019, adding EUR14 million more sales, we were losing EUR8.7 million |
| Obviously, actual results might differ materially from those in the forward-looking statements because of risks and uncertainties that can affect our results of operations and financial condition |
| So how we are equipping ourselves to make sure that Natuzzi, which has 65 years heritage that's been through a series of moment of glory, more difficult, can continue and get out of this crisis even stronger |
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