Natuzzi S.p.A. (NYSE:NTZ) Q2 2023 Earnings Call Transcript

U.S. is the other market, is the [indiscernible] is the second [indiscernible]. U.S. is our potentially largest single opportunity has been very central to the story of the success of this group. And we believe it can go back to be as important as it has been. To ensure, we are closer to our business, we’re really focused on the two channels with very talented manager. I already anticipated in the last press release that we were very pleased to have Scott Kruger, joining us to lead the wholesales and gallery business which is still predominant in terms of business — total business in North America. Jason, by now every one of you knows him, fully respect for his retail competencies drive, we focus entirely on retail, where is the future in terms of future growth, especially Natuzzi Italia.

To make sure that the service provided to these two business units are really sharpened. We ask a senior manager from the group of Ottavio Milano to take on the role of President, really overseeing the staff function, which includes finance, customer care, HR, really to provide streamlined and more agile services to Scott Kruger and Jason Camp, who remain the person in charge for running and building business. So in closing — and sorry, on North America, we’ll ask Jason to comment, but even in a year, which as you see has been difficult, we didn’t decelerate in terms of new openings. We opened seven new stores, of which six of Natuzzi Italia located really in primary location for our city development strategy, which include San Diego, there’s been a location in Miami Fort Worth, Manhasset, Atlanta and Houston, and we opened one Natuzzi Editions in Frisco.

Our brand has kind of elevated specially Natuzzi Italia and so we are doing with our retail. So we’re looking really for locations, which are flagship and which are a good Cathedral (ph) for, let’s say, our brands. If we have a chance, I invite you to visit our new European Store in Manhasset, which really is a great example of the strategy is located in the Miracle Mile in Manhasset. So the part of Long Island that goes to the Hamptons is 10,000 square feet on two floor, we have a signature location, a signature design, and this is the kind of quality we aspire from the location. So in conclusion, it’s evident that the current situation is unlikely to change in the next week or next month. We see differently the situation to perdure until the end of the year and potentially is something we need to come from trade with also the beginning of the year.

Our strategic direction is more clear than ever. We aim to invest in our brand with a focus on organic growth and retail in our core market, which I remind you is China, is U.S., and in Europe, is Italy and U.K. At the same time, we want to continue and accelerate the work to reduce cost and enhance the agility of our organization. So you know that we don’t provide guidance, but I want to tell you that we are highly confident in the strength of our brand and our long-term growth potential. We’re talking with a brand which has more than 60 years of heritage and the heritage is something a brand that cannot buy a copy and we believe this is a central and it would be an important element that eventually will bring us to achieve our midterm plans.

Having said so, I stop for potential questions at this level, with Carlo, we’re definitely going to be providing more detail on the restructuring effort, which keeps us extremely busy. But let me stop here for a potential question on this initial strategic introduction.

Operator: Thank you. [Operator Instructions] Your line is now live.

David Kanen: Good morning. David Kanen, thank you for taking my questions. Are you guys able to hear me clearly?

Antonio Achille: We do. At least I do.