Natuzzi S.p.A. (NTZ) 11 Apr 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Natuzzi Fourth Quarter and Full Year 2021 Financial Results Conference Call.

As a reminder, in addition to the link already provided to join via video, interested persons can also join this conference call live via telephone by dialing in the following number: (+1) 412-717-9633, then passcode 39252103#. Once again the number is (+1) 412-717-9633, then passcode 39252103#. At this time, all participants are in a listen-only mode.

will at question-and-answer to that for we will and queue introduction, questions. provided be time the conduct session a instructions up Following for you

Antonio Natuzzi's on Mr. Natuzzi; Relations. President and Executive call us Americas; Camp, Executive are Natuzzi Direnzo, Joining Officer, Mr. today's Jason Mr. Piero Achille; of Pasquale the Chairman, Chief Investor

Piero. would turn the to a today's reminder, like call As over is Please to now ahead. being recorded. I go conference

the introduction, joining fourth to conference a everyone. give Thank full you, XXXX quarter room Thank Good year for and Kevin. day call. you After we for Natuzzi's financial results session. a Q&A brief will

recent call most obligation United to results differ to Form because today proceeding, certain can forward-looking of review in statements forward-looking The from company's would to now, no assumes like that our the I for call. XX-F company this Obviously, Executive affect that of our listeners or constitute those and Antonio. statements condition. could the securities results actual operations advise States Before the materially the laws. might those contain would to risks revise discussion complete Please, during our forward-looking SEC Please that the annual turn matters update any a refer over And with to reasons. filed uncertainties on financial we discussed under Chief of and our like report statements Officer.

the our the the quarter. briefly Executive release of And Natuzzi, view the Piero. where good Thank you, share highlights and from and key ending I to good morning, press on I on XXXX Chairman recap attending. fourth afternoon key messages everyone might Pasquale

XXXX positive sales release, from on and noted before we up, stronger XXXX. the XXXX year above year the COVID. has Top-line certainly note end than the course we previous XX% you’ve exit As press of been a

top-line, XXXX. the we growth of reported In terms of a XX.X% versus

above is orders, by €XX with the the million. €XXX.X some million of which addition year these, we closed last In portfolio year

need number could in didn't chain of such So XX%, XXXX stronger closing points higher €XX.X we €X.X a gross if of has loss we XXXX. of to price in X in it improvement on double overcome XX.X%. a reported almost a most where of with These, supply million raw was year. where versus is despite the the a margin XXXX we million, in which spike term at see and to closed the compare We during in also which triple-digit from of been which a have XXXX profit material, €XX.X loss ended of terms increase above disruption. XXXX top-line even a sometimes or been headwind million

€XX.X we of in terms versus XXXX. XXXX So of improved million versus million profit €XX.X and operating

million XXXX by with the you expect with in it million €X In COVID. €XX.X that I metric €XX.X XXXX we million year believe terms was I and EBITDA, provide comparison, because solid closed of a refer in could that because more as XXXX. not of affected compare often

value of in which €XX versus So, €XX.X an Also company in by million. important with XXXX, improved if and the million improved. is closed has €XX.X XXXX €XX.X at million term position in compared creation we clearly EBITDA, We look to million year metrics the cash XXXX.

is how started. for of early So and the on XX% positive market highlight will sign These, the U.S. term with year, quite the providing the order ago also initiated will and the as sales In focusing means by we of receive, are a Jason results quarter. some also started year trajectory. brief up this also a do want result the momentum in flow, compare. decade invoices, retail for We we retail our Order momentum year investors. are the which some in full not getting I week are satisfaction results overall, in which also of to order say, with start strong which where to brand the we’re strategy year of fourth respect a provide flow, potential on strong a XX Pasquale at that some also posting provides

our transportation to the that profit, because costs line from Other I We but organizational increase to fourth share. like which in performance. of That's the we suffered profit. operating same working transportation are €X.X from of we million, the highlight recover North positive America we a a America. North pretty in exception especially side. much quarter reported At in profit part was trajectory than with with what level was we the key continue the will €X.X key of by only operating achieve the million reported were economic say wanted would versus to mostly significant I on client costs, towards invoicing. messages for We operating Pasquale, lower Board, one-off With able the extraordinary bit we

and we which with to As now division. Natuzzi best merchandising brand. organization, for reach come the is need with two strategic fully you strategy the on to merchandising distribution the on. of Italia; responsible exchanging Natuzzi One remember one discussion, the we We Edition. regions, have is Those the our for is are view put out which from division opinion increasingly place on centered strategic now in last responsible which so fully

In addition, furniture. division a we created for

started brand. our total As become a remember, to strategy we lifestyle you might

of want offering to strengths to upholstery, convincing traditional we furniture. a So of very our add

For the a unit. we reason, created business

I want the with team. is on to which the week this is strong sector. experience most into And new strengthening have the in company is in part are sharing result doing we idea information very of very a the of regarding manufacturing. the leadership X.X. where of which We manager furniture Other coming we're which a is achievement our important potential evolution going you be pilot The our providing next satisfied the

JV China, aware, are that in on well To to Romania. We're base Last you're positive the XX%. a we Kuka in proceeding last commercially, be JV in the a are in to the million will is be Brazil, which subjected already our on Italy. XX year factory, franchising. profit, aware development we stabilized, our Asia not technology in of the XXXX on something JV highlight for which a added place very for In very those strengthening don't exciting Natuzzi standard investment. which year, We significant rest the the not rest all direct The only providing that a Natuzzi than Asia plan, a all operation for base also ones are venture new Pacific eventually Italy, JV the more with but are stores with the since of holds as in but a a of available locally. closed make S.p.A., region, predominant of will the That Pacific Hence, by is the China. development consolidate here be going the we very in a plant for The JV, state-of-the-art development really to dimensions. cash note would how for line. S.p.A. our automotive, in in minority coming be industry, are our producing acquired pension of I'm press for correspondent platform $X.X that position double player of We're commercial will joint of is a in results. from testing We be in technology Singapore also Furniture of for line and release. this Other a plan Natuzzi discussing we the a specific on sits as XX% JV,

Let receive, me welcome summary to bit here, what your of a to and stop question an observation. just provide executive you

line David live. now Instructions] [Operator be your Kanen, should

transforming company. the job in Great

we're is declines. to a transportation comment that you seeing companies logistics track up were area you're in the a question and first number regards is So of signs seeing? on which in costs, Could We what of bit. quite what

the let events where your majority, So we at. quarter on for comment here. [Technical In witnessing what first quickly we’re comment on to David, let minority. fourth call me Difficulty] transportation, position you and the the taking me question thank are out,

transportation, On the America. had experimenting especially spike the quarter, we a of strong towards fourth North been

of to happened that enough. transparent the let’s freight in manner rapidly not our adjust to But have the cost would surcharge. we speed corrected What our price form freight is to quarter say Our make system these that increase also of in now fourth pass partners. surcharge that the of a account over to to this very did allow practice automatic some in the adjustments are freight of more

the okay. the -- commenting On -- on

but war, oil China. what’s significant issues the are are commenting price price very fluid, aware, not flattening which the The turbulence remains The those see situation grant is more we geographically of a do specifically you're $XXX as a very experimenting still -- all than by are is because more caused costs. the dollars. only than we On much happening, results

you've of this is well. want in XX opposite. transportation seen comment the the day stabilized much by cannot And delicate remain at we geography don't sure what's you situation see to more is know, for know a happening. price basically witness but Pasquale, industry turmoil. day vigilant, on platforming, we because a So we a don't very being years. I been some decrease need in we or moment the I'm the the you’ve if I say to this very because situation, that as

seen last I’ve never experience like even XX in my this year and No, year. anything years’ obviously

of very is So, But we this cost cannot day really plan a price at mean, by looking -- because are high to I in the day complicated, contract. mean, very be complicated, it's price point time, price, from make really transportation pay I very business, view. unless you least the the and almost we are willing -- transportation because to honest, the uncertainty

we is strong strong top regarding clear light so responsible -- in -- the of a very such every order we flow Yes. fourth especially also margin quarter and is What priority, to portfolio business that made demand. the

So that. still dynamic. surcharge closed Pasquale situation the avoid like reacting mentioned quarter. of This and of of clearly which aspect, And the important attention we're situation had every a course -- very we manner. we bit surprises are pass business We that to but really in to very freight side, a kinds incentivized very when a year to a quite is these is or last the U.S. timely way been of has lot paying in leader extra is

explain better Well You I, than Antonio. it said.

no, Pasquale. No, no,

difficult it's It’s -- to let’s explain. also say

So try reality. in the what is imagine to

Okay?

no turn back moment, David, line further one your [Operator Instructions] this is are there actually I'll time, over questions now live. -- please. As at the floor

and I looks it But regards In the around to down in trying here. the backlog European supply to to €XXX note we We in my sequentially. in company math we're about Okay. your seems we us some you the up work resolution if that ago, bottlenecks orders work a follow-up have million down the which then there's start XX it -- backlog up acceleration six to me am Can sheet three going what's in I is some own logistics. And because in backlog, know seeing I'm written a continued name, like had UK. furniture million start we it guys that QX, told lot based orders, that see mention from in revenue. to orders times another tells months were weeks, are normal, going to monopolize. And Not to of not XX%. better, to to down but own continue couple you is, Asia backlog, sorry, to reasonable like about or increases XX despite I questions. we're as Natuzzi? your on write they my noticed was comment here And it would $X in about significant I lead chain on to weeks relates that from a week their and next you the signs a of

can comment or lead when? and if if down, start So you on times not, to your come particular, that, you're seeing in

able is sink. much clearly elements. much backlog how a of which function How production, reading water you're and is gets also pull analogy think careful also faster accelerate what because doing how with -- out, mean, into to I fast an full running your it’s water, of water able you're announce, additional sink matter I to other which of the the two a of top how means

strong So we start for is by the surprised what the year. extremely concerned, were Natuzzi positively of

Since constitute additional water -- strong. a significantly. Edition the important, to for closed, an we our Natuzzi it North So been very last additional has able which articulated catch when advantage. is quite COVID. America production, And production, term long-term quite production water will were the is week, because the In running running view up of we comes of footprint, the water, China then very have especially

it's as aware, Apple. know, iPhone Shanghai, generic you the stopping for which not this has is you near iPhone probably a the Foxconn, As screen production stopped the produce just very problem. for Natuzzi, production of

So not Natuzzi only.

we're good rather water hard. We news to additional which So a doesn't I seem the opposite. the just still working to the recognize is running believe very need stop, for investors, first

we're more at getting day, wake XX:XX. So every till least order to

that all government It’s despite instance, China, they're reorganize measure that, other these second not of postponing something chain overnight. is stringent district, we kind solution immediate it, expecting that of a do not you And backdrop. effort, for be the can Vietnam our the Second, is the because lockdown to is reopening Shanghai even the really were supply area. not though another because there's talking. in week restore And could the in or continuous district already us, for to of

So clients, will to revenue, not mean to mean and the your better customers for at really have reduce order, additional importantly, to because question, not moment very working also more timing. the Dave, special service hard, even will but only because we're our able been their we that

that context given cannot discussed; working a suffering for Black coming in Romania, China where we is And shipping easy So happening. a receiving of on plant had other we important route there’s something because raw not was we're war, always the up, material. Sea, It’s the the that. geographically like

is wish I the I issue But I issue quit very it’s So seriously. say not The say solved. is solved. could addressed could

the branded of you our get my of point XX%. to gross up higher margins revenue some for traditionally this at Okay, much then I over the was branded thank And that noticed quarter. then you question that Do the XX% And is know margin, side update. in product And is I year? expect branded XX% get be on on around other blended implementation percentage both making of and above gross state-of-the-art that speak as can manufacturing you're going the have branded a combination automation technology? the you will will of with investments it, the technology XX% to of our to the effect we what and side, in manufacturing you margins put higher that and

which manner I answer investors, to me bit very a a huge on which investor, close a is mean is allow This expansion. question Dave. in U.S. structured I about you, Thank believe margin to generous

I we you three expansion main So, to would see avenues margin for like and touched a point, then comment.

is The first brand mix. one the

out, pointed the to have you versus As a the continuous trajectory unbranded. the of increase relevance we business branded

with point is Just business. to unbranded above a point, Italia Natuzzi the which XX the has percentage be margin

Italia dollar Natuzzi we every unbranded points So is XX to move margin more. from

we to trend you the and developed the as branded is XX%, we So mentioned, central five-year business are of plan reinforcing that.

that the will minimum So any we rigid does our very put to requirements. also business unbranded cutoff match not increasing And profitability relevance marginally of business the the we that expect continue we unbranded business. the from accept brand not

we our for on clients branded minimum they year, last matching business. their profitability new because some significant target not So were dropped

mix. for is So expansion the avenue first margin the

manufacturer The and maybe means retailer is second is that as to we the And to as ask as well will margin one in comment. XX%. America integrated later we of continuous the retail. do and North improving the performing do I retail a the stores, especially a With margin in margin north Jason

And also plan. is very increase view is five central to that our year to So another marginality. that business

which is the digital one production. about more efficient, is lever more mentioned, third making The our you

also There's the simplify opportunity also before, with inefficiency that, agreement to collection, increase efficiency through close supply chain. X.X and is significant the our mentioned to some a Chairman, in significantly I bit learned for of cause the the a Pasquale, in we productivity we pilot saw the the production. As which the for root

gains will of expect points. effect measured We collection result percentage the are combined that several in the efficient getting production more a simplifying of productivity, in which and

will your hope in three I you, initial moving maybe company. could of we some these the satisfactory are as a XXXX. to any I additional but in addressed get this data Jason, I performance the ask to for are an investors So on be marginality of in also point, to Maybe levers highlight retail what's question. XXXX, more comment which happening

that. do to Happy Sure.

before. XX about XX flow order flicks our that pacing year year, XX% stores, For at American now the a basis pace last store at the first essentially XXXX we which or were talking weeks over grew $X quarter, over them of North top growth on the very The are retail think a a strong basically comp I And about showing. million six five. double had stores in a and XX

and it very hard our So finishes to the rest with pleased we're like make the year of started. working start, sure

update, Okay. Thank congratulations. you that and for

the Antonio, in So for that XXXX finish have, to greater branded than a Or event? is do just of more your XXXX overall to become question mix? of that XX% I you expect

mute. you on Antonio, are

guys. Sorry,

as see, few year. the branded year at this basically percentage every least. to added expect business historically you I we trend continue also of Now, in have last over point X XXXX

then leave Singapore, though last looks see Even going yet. like pleased the question. JV not I'm driver an that, it's in because And enormous Okay. to I'm it to the

free. speak have that do to well. exceptionally for it's my or to cash another realize I'm $XX that for the it, the in our to appears to there spin-off essentially and million, we value that there's an of of of those you $XX stock Natuzzi Can is now caller. we amount shareholders, on a core it could another numbers potentially price? can for leave some performing results I translated So million or $XXX exceptional a and going transition $XXX China in China growing call that getting But When business JV you now monetization business of of ways we're which to enormous profitable our speak kind JV,

Dave, the that clearly discussion are is Board the a having we you, Thank Executive clearly with part and topic. of very discussion and It’s central the Chairman.

think expect very plan, very trajectory accelerate We on is three to positive a terrific everyone You're China, term discussed which growth. the right, I growth. and for in year the of is news actually a

some XX% Currently, million total JV, need assessed to to increase to XXXX. how the on of of the is the of level the roughly which in in will JV Also, the of need million, short-term, really, expects is has which plan we But the roughly affect will the not is cash lot to decrease. be deliver. $XX see cash, the revenue cash, long-term, level there the Now, a future COVID when confidence company. which of a because the of business to €XX

question to for better the do the I shareholder We of see Natuzzi how benefit heading valuation that, So of central. very sequential. debt say be can to would S.p.A. is which do X a

reduction. is reduce through one level cash first the of to The a capital

the and So that, which something the include cash store, discussing we've of opening for be that can discussing purpose That's S.p.A., restructuring. Natuzzi with been priority and Board. the factory more accelerating utilized the

As reserved. you matter it's could Board has I expect, a think which

in put company, that That dynamically. you open agreement add could by table of higher it's know, not list this listed been comment I to maybe, is branded where JV. So I as definitely story discussion. an Then Pasquale don't proposal, company happen a done in separately initiated separate an the still to market be of that, they the to the ask this also, partner -- does be good -- we me, for capturing part scenario ambition. IPO. JV. any by you very iterating and top-line if know, a a that multiple, on a will a Pasquale, and actually because you as and equally to could know want great company with this for of first a definitely what something year, be natural to Pasquale can the our predominant but a color will on the do excited Europe, explore Has we is having China from definitely margin I in Kuka, said this me a in role to would something, level believe business. I on this. and there idea growing to We find option we we're value need a where counterpart. of our are double-digit That bring a

You covered everything, Antonio.

of with China. sleeping on I But [one that and It's minority, the execution over speed Dave, of you, the you enough you and deal fast your this the other we investor the are to I depend about agreement Pasquale. some matter. reach not Thank quite want reassure year] how seasoned The dynamic you know the are counterpart. the can with an of clear,

control. So totally it's not in our

coming today question from George is Melas next from Management. Our MKH

is line now live. Your

time. the Congratulations us level business. on of it, every questions. the the the you trying to you're I reporting thank that and Two And think I the of parts educate for really of remarkable. It's quick high different makes appreciate all on transformation the about It business, business.

plans One 'XX. is Mexico. North trying in there's XXXX. progress of also, on in give manufacturing if -- Maybe, of great to congratulations any bit a on the your little retail maybe and Maybe, for 'XX And U.S. there? some the and a Jason, us see America them

might Jason comment to I on Mexico. I'll George, Okay. start leave on then And retail.

Mexico. much very looking are into we So

Natuzzi You need to with XX history. of company as years recognize a that

those on are need especially to for about opportunity extraordinary Mexico, we the as okay, in the consideration cautious intrinsic which costs. you we production beyond in which direct highly factor which outsourcing it the but comes if But area that opportunity which today as decision Editions need if understand with when company are determined. So make not Monterrey potential when saying you across with investors of in investment. rotating Because you Determined looking look logistic cycle, This through XX a in a product in program, a listed our to FurnMaster, I'm the player Mexico no-brainer, will differential subset for Mexico, a quick Asia, is because the just Why cost products, have about is operating an to shipping okay? investment partner. next speak, quite months from next led us you cycles, come started this? or sure means years, direct Danish is are be take that Natuzzi the to X these leading at our

North are cut testing our works, top make that We to we also us program a would sure this partners with this but we confirm that of weeks larger investment, in commercially quick for term. not a from so standards that matching moving XX investment invest the sure our In time, standard this lot the X it's viable X, the also radically this is America, time and make direct in want to only a of from experience quality outsourcing logistic direct we that where a XX this weeks. that long to is to be that viable. number clients will If

be we because when So of of client. direct clients. well the experience great a speak presented will definitely investment, as viable, a differential also this by say, outsourcing, as especially comes to all time of being elements, my this not want benefit have our also longer the -- only confirmation transport cost point, be we I to received in investment we're story mean, costs, with but in from When direct cycle where in starting long This benefit that will the given extremely it we're outsourcing in other are lower we to goods. committed, fully operational active, to cycle, financially is come we

Our production, exploring. are we continuous

We retail. Jason I in your are on address yet. starting open, that pass if direct And over comment to maybe but George, we question, are investment to not

to do it. Happy morning. Good

So in understand U.S. sort pace question, count your if I retail think store bent question of is the I about the of of growth our maybe the your

when we've and as with we As about stores X in do X years. this shared, summer, have and to those over independently great we year. year stores over plan this to this on store consolidate XX the to a mentioned, look And press America Italia do plan to for a release we And open year, to full And at Editions our about that store dedicated you Italia. are We've we'll start next track the up one that of about in are XX Springs locations owned and and double the and owned open in openings a Natuzzi whether specific Dallas X and or stores country Natuzzi manage stores a the are you'll QX and those some pop off got Metro see first stores From area one QX. North brands, in Editions count us. Natuzzi stores that the in between -- the around and North the XX% We total did XXXX. they're quarter, Palm area. got store we opening P&L we ourselves 'XX perspective, XX Natuzzi retail U.S., up and both in -- across sales in those about America our we by

So I George. hope answers that your question,

been have by which project, not which so that business was where a are had in call Jason, sell the Friday, for was projects, house, of to for us repeat, I we we we And again, average sell America the Griner, piece presented has which at a X upholstery and our Retail how Michele North solution regular that order $XXX. $XXX are circumstance doing above Manager business. so with one dynamics. and quite seeing we don't but encouraged every for presented country a weekly are To our becoming retail but a We of which an stores, meeting where to way the is retail situation each, more sofa, last them where in we what client them more advertising, come ticket

So the client ….

$XXX,XXX.

sorry $XXX,XXX, $XXX,XXX.

now like. avenue that’s, grow of piece But situation you a course, value Jason, not of bit, we're order you have color want average maybe, and a is mean, growing. the of X,XXX I add did this, Italia, solution, we profitability And to a feel we an to Natuzzi Maybe, have which interesting furniture. comment. some a for already I very a on selling where the it but to store. you want So if

of a feels our I and to way and our that strength a listen, build mean, No, bring is strategy in size. our reputation we to life design build part brand homes that to inspiring big in sure some make and full and that showrooms average our our our rooms people, the and build and loyalty the for in talent stores full help order build cases, that to can

So a our of that's part definitely strategy. big

channels the distribution Yes. But at the same growing well. as keep other time,

also example, €XXX look and I those was growing for 'XX million to if XXXX at maintaining in because, million. are galleries, €XXX you So those And galleries extent. some was in

was sort portfolio It's that? the distribution nice of some it channels. comment on Can you of So across growth.

S.p.A., it business So, you managed. on from data in IT our we the part because, look it so is include perspective, bit customer's and us, at we -- they where for They if was system, taken weight retail, a operate weight of Natuzzi U.S. in very strictly take merchandising franchising XX.X% XXXX presented, direct we by the and a store operated XX% charge that of is XXXX. retail. versus franchise The the George, of the perspective, retail increase fact, customer's so in our still

percentage business, the of XXXX. that part point at overall increased channel, we has of the versus stable relevance increased, in the the include percentage rest the When look seen I X business sale, we’re decreased. of in that the word So points of which since been in XXXX But business, business.

well-executed towards us, in is clearly bit there it's So because okay. for U.S. a between is a gallery in Gallery, FOS a movement

us. something to want a is So a brand. to very of the have poorer what we good gallery But executed is presentation don't favorable

we slot elevate about the a call where when want to distribution from we about talk of life think we kind business. of So cycle we just product, wholesale, what quality the

us expose models gallery, floor want want suppliers. So X and from that in other buy elevate assortment really the together that way experience Because gallery. to in we want gallery we the customer present from clients have. from a the FOS. want basically, the to to move and to with we them to We And

dynamics unbranded because Macy's just will those, in good following galleries always we the by branded in an like never clients for will are others, slot definition, where world, be gallery will large business. ideal So be comp retail a applicable. or executed the The

do slot, the we good. because, where is the gallery of -- branded the increasing perceive individual brand to experience as you how to discriminate sold and us We don't weight richness a of I want know What of product weight does So the in retail weight the the -- retail customer the experience Natuzzi. setting we the models, for reduce which not together is with means brands don't but other retail. models of cross is continue data, galleries where increasing.

next Robert Our Penn from is question from Capital. Marcin coming

Your now live. line is

on last Thanks, how guys. store Could and our comment the U.S. we hit you openings or whether not? year target went

opening opened where year a a standpoint. from store builds in the a And X we above say, I really for store an and got So partner great really with was year Dallas is last performing market. expectations. modeled year the last this comfortably confidently Italia Natuzzi momentum year, our that can then store

that forward? was was The Okay. X adjusted at is trying number of store over need -- is, this unit is to combination and And what realistic? question I into be did XX last to going from spill Or openings get it year year? a did really, years

fair that we open it's to stores a year think I more we last intended few to had say did. than

at now we've team, that for set we to the pace this the the network think group. run I have broker

margins, to The of X shareholders time business we -- an on guys so Okay. last something have I a oil range giving in as of of if all as I kind X general. there and Thank on And would might of my in to some out. those kind you. achieve sort stuff, look income quickly years running could sense just globally, company last shocks us even looked the you margin well the and target. when we're passing consider -- where kind XX% Is operating of term, and pandemics margins this gross margins asked is out that I -- of second is statement intermediate what quarter call, The was forward possible. very of wars through revenues and the question on

what is are companies that true believe sort of things off they power when Some show thing fixed. earnings intermediate-term their to do just

kind plan, this it's Chinese not XX to quarter, this years but out not years a year. It's sort like situation. not out, of of X-year it's So not X it's a X-

profit sense an is the to or target, or to would and XX.X% after-tax in generated where years margins as when you hardware sort former have be margin the you net the restoration But to That's us generated of comps. quarter, on last facet we can X want U.S. down X latter after-tax with going you're the furniture what of operating So margins. assume X.X% work -- X I road? closer would be than business humming. any to this give

for So information. question, I say, I of completely your, perfectly your and appetite this understand kind remember

very me -- transparent. Let us be let

Board, and only team plan, Pasquale, numbers, of that, in a is the strategy, basically, next there weeks X-year but we and And So respectively, our X is myself on. the in which the for approved trajectory, is full course, not fully of ago, years. P&L, committed X

which and our do significantly internal the and on said, digit rather So over a which, high is positioned year an digit. you growth X the so based margin That the the low top next is than growing we on more reaching objective, double-digit as definitely objective. is expectation have line, internal

explicit In terms with providing final guidance, have of come a being we more not conclusion. on

on because started a year we around the we As guess around of world If provide the be extremely year, very will you that it is just difficult the see remains I because -- to a had but world not phenomenal us, us bad-will way. in uncertain. mean, this

Europe, and Now, contaminating Europe is Gap] only abroad. in not we are [Audio

to is lock China, We have which down. going

we investor powerful, feel to are pointing direction. but can in guidance when the misleading. we it providing also want So actually the is do we And right be

a is which assured based based business in transforming peers, European branded growth Very we're aligned plan branded the in continue company very So are on significant operating. and the have company, the line getting the retail the assured we plan. peers margins the to transforming on top growth,

bit a let is us this consider So of direction. that. In providing number, precise the further

decision very We in beneficial you, next could back on come be that. serious will so hearing we a take for this are with request, we'll and call the that a

growth Thank to entails margins At that plan the improvement. significant that we plan. significant include that view and was very for enough bonuses significant hope senior X-year And I least have they much. you intelligent should management, compensation would a Board

Okay.

Thank If equity the shareholders team make money, I participation. management with hope you. the participates

[Operator floor any closing at comments. to Instructions] are there further for this As I'll turn back management over time, further questions no the

there the questions you, further no are seems Kevin. at Thank moment. It

call you conference reach have the with Bye, for you now. you, conclude Thank Thank And joining the call. or question can everybody, a we guys. right all So me any call. please out further should or bye. doubt, email

you. does today's teleconference conclude and webcast. Thank That

at wonderful may you this a your participation line time, thank We your today You have day. disconnect for and