SANTERAMO IN COLLE, Bari, Italy - Luxury furniture manufacturer Natuzzi said revenues fell four percent during the first quarter, but the results were worsened by an adverse legal settlement.
The company, which is opening U.S. stores and had traded on the New York Stock Exchange, had to set aside €9.3 million (about $10.4 million) after losing in Italy's Supreme Court in a case brought by laid off workers. Workers are protected during layoffs under government regulations.
An operating loss of €10.2 million resulted compared to an operating income of €1.1 million in the prior year.
Net sales were €115.9 million for the quarter ended March 31, 2017, down 4 percent from the year prior.
"The first quarter of 2017 was disappointing, but not discouraging," Chairman and CEO Pasquale Natuzzi said. "Our industry, like most retail, faced very difficult challenges caused by the global political environment which in turn caused consumers to hold back their spending."
Have something to say? Share your thoughts with us in the comments below.