Natuzzi S.p.A. (NTZ) 27 Nov 232023 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Natuzzi 2023 Third Quarter Financial Results Conference Call.

As a reminder interested persons can join the conference call by dialing +1 (412) 717-9633, then passcode 392-52103#, in addition to the link already provided to join the video webcast. [Operator Instructions]

Mr. are: today us Joining Antonio Achille, Officer; Chief Executive Mr. Natuzzi's of Group; Mr. Silvestri, Chief Natuzzi Officer Financial Carlo the Pasquale and Natuzzi, Founder Executive Chairman; Mr. and and Senior Camp, North Vice of Piero market; Retail Relations. Direnzo, Jason Investor for President American the

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

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

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

Officer. call And like would to Chief turn Antonio. to now the company's the Executive I Please, over

you, you, from I hope last good U.S. Thanksgiving Piero. our enjoyed and Thank Kevin, afternoon thank week. audience morning, Good to everyone. a joyful

development year, on focusing the this the of brief illustrate quarter. So let me third

a been given quarter that the year you XXXX what below As using reported same below in comparison, XX% the last have we keep significantly and we reported we of of sales third the the cycle. as period have what seasonality in last seen, parameter in

amount for EUR between XXXX benefited the equal previous million important XXXX from still a to detail backlog. quarter difference to It's XX.X because significant

demand you us XXXX a that industry busy remember, to unprecedented the as the we top COVID, to that in struggled will during in helped line. did backlog the And resulted all spike in the due of in aftermath fulfilling the the As demand. keep

quarter So the with, has compare up quarter been third XXXX, of XXXX normalized a if decrease we third let's say, XX%.

has with and that our The consistent us some very which unbranded is component strategy, much of our the is component but is clients business. business, clearly will of our I leaving more partially say of been because affected,

reminder the a might As of also not in But historically, branded participants was large group. brand is for Natuzzi. Natuzzi, the now which coming know those of the producing brand Natuzzi so that unbranded was with floor out retail depth retailer factory on so sold products, product it -- a without

at total, third sales, look we the in at branded If company branded XX% XXXX the of roughly. unbranded we and quarter closed

it almost the the say compare sales increase at XXXX, almost brand the percentage are an whereas third if was in quarter would entirely I of to points. so Natuzzi, XX%, we XX of done percentage happened what So under

retail This which is, not unprecedented despite a the become times confirmation branded we to strategy, and long-term is are I will spot we from that our some deviating company. more, live, a

That's the in Of the our fully is want why carry years -- marginality. to reason XX also leverage course, of the direction and business higher that we component invest. way the heritage of which

in in important flow, so that than of been order, order have we has weekly Another terms the in is resulted XX this would the fresh out XXXX. that like that year, a week flesh higher of sense I since year witnessed element we the previous change what to receive direction

same were the which reporting the sequence, fresh order XXXX now period flow So XX are is XX, period. previous for interrupted of that we where cycle week XX the we below weeks of in And or are previous orders right above a closing year. months

now I to it's early believe XX for turning we But let's weeks, structural, that. see point. that that is think say, reducing are to if say too it's I encouraging

Another focus XX.X%, as marginality, the This above been is in our management, so which gross happened our the is which extent again with important, margin, a at the restless cost that's a on absolutely I consequence has years. that volumes fixed discipline to pricing last element, which the disadvantage comes we X testify absorbing to compensated factory. large average because is believe over lower and of our with cost what the reported

of sum EUR of course, put it what to a the I achieve. which, equation to of in the in those, loss say, led let's operating not we X.X useful it's The perspective. elements wanted of loss, to million. believe still quarter

loss EUR of loss sales. of reported in sales million with that XX.X in EUR million achieving compared instance, million EUR but XX.X EUR X.X a million reported X.X For with XXXX

that more that EUR in X.X adding XX So were million we losing million. sales, EUR means XXXX,

year, This XX EUR losing EUR with million are less. we X.X million

growth our directionally a strengthen so So to for come we working actively cash lower and are model working have on doubts our have asset happen, to I that no believe better that we we and a that when better a that our breakeven give you back, and sense are profit will and that operating will conversion.

proof of even is, Also, in to been previous resilient it year. like the model EUR this circumstance positive. X.X has extreme cash. again quarter From we're under the operation, million, our EUR compared is self-financing. a by been has that witnessing. is to Talking negative one And million a way, which X.X a positive this cash of Resilient

X we and -- strategy. but quarter our later, And X.X from retail; in in continuing in deviating our we brand in and restructuring even not discuss this our this are our priority side, and one EUR us: the on yes, long-term even basically quarter, invested sorry, on retail long-term will EUR factory. modernization million are of We enhancing modernization of for factory, the other side, restructuring which million

for crisis we in which, are living contribute. in humanitarian I is, additional we industry, not the say, evident, are, East, are everybody this the witnessing demand. as which you very Middle quarter course, we a of soft where, as does the know, us believe So only addition, are a would for I still of in is highlight this not humankind, unfortunately, the but circumstances

equipping are ourselves this we a growing our even resilience ensuring of that the of ] that's monumental sure been imagine, XX has sheet Natuzzi, strength which or balance cost [ and years' heritage focusing can difficult, series get As and you how make on structure. out of stronger? through crisis really So continue to we're can and our

the We our are continuing units, force a which front. just by Since of of on quarter. reduced sense to XXXX, restructuring we XXX compared, working acceleration, past with XXX give the

is because in the X another our we that reduction, important So go people. we are XX net notice let I in to our meantime, organization. quarter, strengthening This think

we are So changing the blood.

million come name collaboration good started Williams, from make Just addition, the a Brian managing last it Mitchell this strengthening retailer. quarter crisis for in through retail. now a a $XX called business Gold very that a our approach gentleman with Retail quarter collaborated but Division actively this Bob definitely + of to didn't Brian and to here has stores And been Waidelich, we is keep with the was which XX with our Global

the efficient. to we the that an same example we use believe brands, make our time, growth at investing this in and since business are working uplift we But strengths ensure the competencies. as are, I to our more deeply of to So

decelerating The been the have retail front. has been other area where we not

from in you this of sorry, traditional investing I'm capacity keep of X million of to retail. feet retail players dimension, one apart, of opening the during So the a -- first in of square since I U.S. the crisis X.X course, year, somebody been X.X million commercial large open square But challenge or about we've surface. every meter has find that box. courage to that talking retail

strategy. know, still is America central As to you North our very

Diego, flagship, means X,XXX Natuzzi primary square We location present. In opened, been cities, where we not and were so inaugurated or Atlanta, fact, three five feet with of which has and new Houston new above. stores, Italia, surface San

a store with really we to Manhasset. connecting Hamptons, flagship. in Mile, I the fantastic hope a visit opened our one is the the chance locate [ a you It stores. Miami will ] have Miracle on it. And We

franchising opened XX we addition, In stores.

containment, on not on accelerating the focus for said, same at I as we what but the So platform growth meantime. cost the should be de-focusing time, in

the working asset. our is are dismissing we of of to increase strategic way investment capacity Another one

been past calls. those on explicit our have intent in We

us becoming real. really further been Board, light with have discussing are those our gives green to the continue which We which some discussions, of

heritage have is one As our this million before, selling, considering, give fields detail, X.X and further square that still I means most including Mario tannery, respected consider in Other we which architects still the that including some living, we famous mentioned fantastic might feet. of is by [indiscernible]. a assets are cannot and Bellini, and Natco, which designed the I of you location nonstrategic a we with which Point, really iconic High asset,

be accelerating really a potential been decision our that This buyers. active especially So core a ongoing consistent discussion that do geography, those where is main materialize? process What consensual America; which will with means we two Again, has going journey. proceeding restructuring. has priority very our been if in priorities: materialize, retail and that's again with our forward. our Board North If a that, and should there discussion proceedings

solar like of closing, quarter, from is the really to would takeaways the for this to I more key which give messages I perspective. would year, calendar closing, least this three are say me you In a of but going that at

obvious. market the still So is challenging. That is

some should celebrating capacity our we cost and not unsaturated because to been period and increasing XXXX. which marginality, capacity we be is increasing managing by of achieved of points think this higher a during I compared resilience has obvious, percentage XX achieved

is, don't which me not over-comment third branded a conversation are message consummating on which long-term that in are focusing from often for notice this same that period The numbers together. I point, believe, from restructuring. had is to key year, came we week strategy, is versus to XXXX, we the the and green previous again the And second is our that is I but reporting of we which XX the retail want encouraging deviating question

Piero, part third here you specific aspect and Q&A. Carlo some interesting stop let sheet. of illustration balance this So results. more on will of stop element But our for for provide questions let quarter me on initial with Then P&L here of initial me and we

do from Kanen we Wealth coming question [Operator from a Dave Instructions] have Kanen And Management.

"accelerating the statement the focus building to taking and on your you the me. American restructuring" sense then follow-up that makes which out perfect made, the appreciate DOS North is questions. footprint, you on I A

is think fund of the of time is that, you accelerate So Point? what in and in some non-core High of frame assets, the disposal my particular do to question order these

for and words your David, encouragement your you, question. Thank specific

due entering we And buyer. is potential we So potential which really in are if the are agree High we the the a moment, into disposal. are then close looking -- have with to diligence, on a At an Point, terms, market. a of entering discussion terminating diligence, which carefully being at we due is then we ongoing phase

So signed the been it the our terms as including right until Board High me, can through than Point we've full have right better for dismissal piece by decide of not of moment, to which Again, you paper, because, is going a to the approval of very a concrete, our you that both it know asset, not complete process, strategic the parties approved it. the opportunity. Board. is But the needs be course, is

scouting active for on is the we internally, But active discussion is the of in of situation. buyer. They assets. that meaningful of the details. potential part is we other market with step homework. are, are adviser least last we the in the But other potential this potential a our for this So disclose, bit behind. potential I done the terms transaction on think an At course, impact. a we are less buyer active asset, cannot there appointed with way, -- have asset I a the And are for on by both

Houston, Okay. I But in Diego, highlighted were of my advance the so questions, opened, you for the apologies in Manhasset. several San new monopolizing. Atlanta, some of -- that terms have stores

quantify pick what -- quarter did may contribute September, up -- incrementally? be ended you if average of many -- unit revenue volume, can the any $X assuming in the the in we seems that average I'm have QX the to if third these newer on stores new million and and stores stores these stores. to probably how $X So the an That million. not

be So if would there, helpful. that could color you me give

are When in really Okay. the we store. I will what agency area, or to operating include brands new other then store, very maybe make careful base study details. add the Jason ask for I a process, solid terms of and a will which geo-marketing is that a sure further start constitute a Piero that open to catchment there a

business plan, And strategic That plan, which a includes show our our For breakeven a is business our XX us, should that and months. between X-year very criteria. XX decision it's decision.

Initially, is phase there we the not always operating [ benefit a because have it's course, of ramp-up you the full Of operation ] the full of new have the while business. impact cost.

a that's So is principle. a bit

those stores, on [indiscernible] already are can raising So I'm maybe, But new some in ramp-up more five those you this you precise otherwise, provide, are in XXXX. if not they still phase. figures your hands, openings Jason,

Jason, could if that. you help on

like anything? I'd not model is, incrementality so how the contribute stores, Just new QX? of know did to what Just, I of the in going if could them many forward

Sure.

all So based important it's, import I think, stores on are first, largely special remember and order that a model. these to

and based into written months into the difference a definitely stocked begins more flow that to regular factory there's between opening model store on import our of So a feature time on really the any what orders we product our which X revenue, basis, in we quick would assortment. kind locally to call -- our of our delivered outside of versus X normal timing in

'XX of all North your models, I early think revenues. about as it's these to -- for you thinking be our should So thinking impact you're American really more openings, materially recent about

Okay.

five Jason. helpful, So stores, very those was that

what in you orders clarification, months or until shipped. in you're show taking when you're So later written don't but your Could they X right is is saying X product give now, -- revenue quantify plan? to if written and your for up the you give they're a seeing you're stores us to flavor -- us at Could the that orders or new helpful. very up that's performing

[indiscernible] think proud against, let's work. store the a I when estate Sure. step very the would I I that we're and locations, real say say, design of our back lot the of legacy

we're largely even mentioning, new when hiring written a enter was a Antonio we market, As team. the side, on new

than we're historically And year typically, X our that both stronger definitely mature. over And ramp seen of couple we've is what last and stores seeing to the fully X, year years.

disclosing store believe I I'm additions really great U.S. here. individual not volumes. that to we prepared haven't been think I'm the But do we that And we've So to fleet built today. sure

cadence question -- a could see of revenue, a that's bit. quite of to front Well, expense small. on Okay. it's Silvestri, -- we helpful soft us. if I was the and and I recognition pivot the have to appears administrative just encouraging then revenue it operating opportunity nice bright the in that is a guess, done for little of loss a understand I spot -- great you've And here such a selling job driving expenses And down

much theoretically, million, would you how give and increase? up next let's much you a okay, $XX million? Silvestri, that on understand we does increase, by million me, up? increase So back go revenues expense if $XX much to help to $XX how when me selling Could sense say, the selling do if $XX.X variable, million, revenues is expense How could

Okay.

our terms basis the same the it only all the in already the transportation expenses, So discipline, of related we sales, commissions show and the on part, rent including selling if the by let's fixed network, volume, will and part that in go say, the costs. today, as administrative increase numbers up cost all regarding if and sales increase so to the we the variable our of

of range. XX% it, by up go could they say let's So around that

a would $XX selling million if increase increase So about we revenue? expense XX% had in

because... Yes,

should expense administrative And flat? remain

Correct.

helpful. that's Okay,

to I there's So in financial that a on of quite generate profit. that shows the when get it mean, flow-through bit you leverage model revenue,

percentage the us the without months. -- to out last like give positive what versus have could being us granular, improvement little in Could Antonio, a magnitude? -- orders color last that you be give called question, XX of if looks more then And you completely specifically Okay. flipped you -- written that on or terms

recently, would more digit, the single but been if it's geography-wise, the versus consistent. it's branded has across say, digit, So I look stronger more we unbranded, And single it's dynamic. U.S.

-- America. been South they and more during not geography, market being other that been emerging the Central but an reason has because year, is The have of which are resilient

me say parting China, the going bit high COVID. all even being before consumer been branded, the which beyond know, This gives And comment would but furniture, as end I year. the you I through gloomy luxury, not product Dave, say only also are they say, let's very opportunity, different also when it affected. have ] would and is your very, to a China. this we [ to comes on question, an a goes

company. The thing working as is integrated are we important changes that increasingly an

minority. As you the know, we have

and way which to has and we led autonomous more way more merchandising creation and operate this So now of the the an integrated brand historically, organization working been in retail we're a choices.

that will very good our the still geography about outcome hopefully, witnessing partner, business. positive in to after feel a consumer very, we So that we conservative that giving And also the translating the is be with pandemic. very, a direction are from that

questions. little cash I'm Okay. cash? that now? our what on in in topic, right is is of JV But I'm in some this cheating the much list, On bit, I guess, asking accessing How a And or was flexibility more my that optionality China.

cannot I figure, So before Piero. cash, on the to can technically, disclose it know I we the but to XX-F. I to be refer the I right? to refer that sure Technically, want it suspect need now, we

listed You're we because so Antonio. also they disclose. right, company, cannot you're disclose are right, We a cannot

Okay.

the since of disclose increasing have cash. So I the beginning cannot been, the the figure. year, They

invested cash. they in our, below assets has the times, the respect group more previous fixed asset liquidity because in cannot inventory I, moving which Natuzzi in between mentioned managing. of of now balance direction we it's also I listed. few year, and what a give been fixed being report course, partners say -- let's unfortunately, of because we at But figure Italia Of as And has again, ], accruing or the are both been [ you because

the -- question easier other to is aspect answer. other The

of members, form the which by Natuzzi being Executive and Chairman, are So need dividend. distribution the of to Board Both Natuzzi two majority five, cash can the being myself. unanimity authorized by appointed appointed Mr. and in be and Pasquale or a happen three the shareholder, KUKA, capital reduction dividend or being by of our

the approved So to both reduce let's say, and the dividend, which unanimity by -- by options both is be capital of to, cash reduction the so cash, need JV. Board

on then I into would this question, Antonio. get a seems this, that to the as living room, focused that but like well the go dining appeal particular strategic room. I thoughts the space visit falls the see they Jason's like I And I and broader quick to the home. very stores, you're when have domain, When bedroom a living maybe Okay. within And it as competitors, your on of your room,

focused these large so product where talk for or into lining opportunity building Natuzzi you -- building rooms the other this And silver in guess, double that average are But high-quality, you're our unit even goes focused designing probably Could the longer I the footprint. triple your also terms a desirable we volumes on focus now? you there? team are could do I be have out American and you. is so of is term, that know on you North focused

having Natuzzi presentation in No, On for a living. we're lifestyle Natuzzi really David, store Natuzzi needs direction the And going specific and really be here spot you Italia, Editions. with the in of I are total the a answer Italia to on. believe

Mr. preserve it, and Natuzzi upholstery, As room, Pasquale of that know, the in heritage has is it's strength the the not you, Natuzzi living saying saying is where but really in of the market course, the as this which been combines we as want a And a want entering different to and harmony new you to that. But occupy category mentioned, we're retail we inventing rooms. emotion. product, retail, genius, of

upholstery, in our working far definitely on in And the Because fact, are not upholstered happens in the it's again especially are technically, away technically, bedroom, we where that So the material. closer somehow for factory. they some production of bedroom. to

So the to occupy. we want bedroom is room another

production of full fact, really two and present materials we room dining in to also the let's be -- the say, needs. retail are room, experiential. occupy immersive But course, Another in the partnership legitimacies increasingly, the to want of instead, brand strategic and the we we for we needs technology everything. different. and And to design lighting to One where technicalities in want production. a do of store is And accessories, because is experience experience to have, of that internally

of you accessory And need and so to have full enough furniture. a

And we it's our direction And still to see second the direction. that be is opportunity -- let's that say, see and a furnishing admit fact, must do geographies. ticket. order increase transparent I we The in the improving is because recent, most average a significant in in

So strengths we in clearly for to of offering leverage part we the brand the our retail. short-term fully leverage investment objective are still to have is the and Italia. improve to fully working that the of furnishing Natuzzi This

[Operator Instructions] Emerson from We do have a Investment question from Steve Group. Emerson

your Could objectives of about of U.S. revenues what year, next metrics domestic are And your the to the with some be quick met percent at? you in you some fairly or inventory? now talk hope also, of

Okay. Steve, and you. reconnect nice with Thank to you,

see So answering is bit Natuzzi. condition, problem the on natural issue and to part tendency this market let we start to the one the question, which specific dream. start. to Because every but me difficult where will which different let to is believe a I has dream, me that under question focus answer of frame, time the the a a your I of forget us the and more

So then back I to year. there I will answer and next first go

is dream it deserve should and to the So where be. Natuzzi to be bring

in market, first remember means China. first not those, awareness is in in survey, Natuzzi we to brand brand international independent Spain, doing second positioned in which Let's are U.K., among U.S. as first a that according

today's say of And clearly, larger the revenue. the So than is much brand. that's the strength to brand

buy, the brand. And heritage. terms is. is Chairman ambition would of revenue element, be the a a XX company This where there Again, work, bring Versace, simply Natuzzi Armani a into investment or ago. second you the founded build which cannot created is brand bucket of an do what market. fashion the really this in has way, analogy our is, this years in position, which So have the we to company which the Imagine this of a the company with by where if is the so

So dream the that is the and vision.

more time U.S. So sales. specifically portion next quick on and talking of year let's go back now

year, are It's finalizing I Next providing still in where we release the the of of not peers, circumstances sign budget. that and you our believe recovery. everyone, for always is obvious press read market, the

a building we case, If, which our those sales that fundamentals. Having I some the are that, quite will business We asset privilege strong what retail resilience we will before, of wait and direction a and part solidity to investment provide in strategic of before, said in discussed retail the is new of of as the acceleration. prioritizing see investment year first Otherwise, and terms is mentioned in the which prudent of the in development of happen, nonrecurring restructuring. be are we year.

we next how is that year. So entering are

versus in so wholesale, customer, KPI direction right are P&L product the of the sales So ticket, and KPI of testify in certified in we're we order monitoring moving recurring the that perspective. which marginality, term, equity a moving total sales terms of that direction sales, KPI, an from branded were of retail channel long that right sales means product in average we number versus still in

relatively putting to if answer of or say, materialize, the any it a allow perspective is of will mid-term if investment ready the in accelerate but asset an year, first of of you, prudent suggested in condition I terms terms give I the journey. year budget accelerating doing to the new our just to investment, next of In part which nonrecurrent transaction the be a Board more

or, Jason, let's inventory, want you take On the it. quick maybe stock specific to on program question say,

then Happy make to you. I from got the a little the time, today to of are what when would business, XX% it model from, both And already retail Steve. are our brands, that special the retail side. right, quick of change, over floor a question, I ordered combine And let's side say, orders estimate have U.S., about available written that your to attempt so XX% on answer come sales the sure I in

retailers the wholesale say ordering the their would from our percent, let's say, a I But but investments. -- often they're directly. provide on the are they side much own us business, larger -- of stock

customers Our stock. own build their largest

business stock, And standpoint, order the would special XX% the ratio their XX% customers the think like side on hope from sounds you so guess for so if but special blend Natuzzi, maybe to question. Mr. order reasonably had I that of I I it answers is that your close, -- wholesale a to stock guess. that's

many concrete more for build looking was stores expect Natuzzi metrics, I you how et like cetera? U.S. year, do to next

Steve, So a you cannot year figure the give on depends I said, I how as develop. it will because

say book Point, at $XX say, let's So the -- above it's value, which Point is a High High is million. I don't give precise figure, but

significantly above the it we assume sell number. Let's

reinvested said, primarily in would stores. be it I the As

stores landlord contribution capital In average $XXX,XXX. U.S., is of the an around by net

you of acceleration, course, a apart selling is assets, self-financing development So provide available, those of need nonstrategic to our openings, the If that significant to part, lower. increase can capital speed can we from a a imagine turbo that, a boost. needing way

potential, we In since can't a again the of disclose we will full our plan. have terms But the in use plan, number other analogy I from competitors.

the stores stores, to is XX but in international XX terms U.S. positioning, in us necessarily which Roche Bobois. and on terms similar Italia, price is of model both has being which think Natuzzi positioning company actually of above Roche in is operating not I closer Bobois,

our we more depends to presence that Dave not the fact on question eventually definitely us space Italia ability happy invest before. there's store we double want implicit to to think are to of but I that the So the as Natuzzi we store for number than open in also by, in of arrive U.S. The mentioned speed don't

on growth really also supported. is So make focusing we're to store that every organic very really much sure

know I cannot answer. next it's So to for give a But shorten number year. long a maybe it, I you

XXXX because need maybe in in America. cautious. year Our which this of particularly mentioned is stores we is let's for what to first the of But around at X budget, before, perspective year, part to per do a because I not, is North least to confirmed long-term the XX open say,

Okay. Did eight you or... say

X no, X no, to to XX. XX. No,

got terms follow objective up room? your it. David And And what your X to XX, is room? revenue of nonliving to living percent Kanen's in question, what's percent of

more general? For North or in America

North America.

Okay. our to system right checking specific. be on more I'm it now

if America, know the we'd I for numbers share, Antonio. like to North something it's

You for actually looking or have brand. by I Natuzzi Italia brand? was for

by it have You brand?

Yes.

you go I If but go it, have it, also you ahead. you have ahead.

You go ahead, Jason.

Natuzzi the XX% Okay. When we towards of Natuzzi of total. oriented it's for And spaces number our Italia, look for that's living north XX%. it's at product Editions, about

objective? your And

I I mean, is mean, normal be for -- the if sales. Natuzzi skewed see stronger. it going to upholstery to In upholstery, we're be that the XX% skewed will market, because I market to always believe is upholstery. always I

China, a on is is Natuzzi Editions more XX-XX. think and where the good I analogy maybe push team harder especially

So our know, XX% I long-term is the have heritage. percentage can to the believe see think Pasquale, and our XX-XX, be if you remaining upholstery equivalent in is industry. done you higher stores. XX-XX. don't with market I But don't in how of I non-upholstery objective the this agree, also been XX% I

a to which looking interesting all on allow data, on we But I'm say, at just life, must time data. it's close-up in to quite really have our system least any where because my dream this, look easy the my possible enough, look real at again -- phone, made I

don't just close look say, look which do last course, one second. a on, If year, answer something -- year, and I specifically I to market I any privileged information, Let me that globally, to let's is, at of at, to turn question. hold global so

Instructions] [Operator

said give sense of been of the not just And merchandising accessories. complete before, which course, a and we to as you -- So smaller you what base, non-upholstery. but growing I which or a the than global just satisfied yet we of we dining, the more express upholstery, assortment, upholstery, non-upholstery includes acceleration with call to has are what give from Xx means bedroom platform, the

an that of believe is So I area still opportunity.

do follow-up from a David Kanen. We have

what But issues the backlog give chain more backlog I know does on compare our to of COVID. when how Yes, you XX? was a September guys that -- with it we had number. And relevant June used XX? as supply was during

backlog at The physiological a is level.

the it. can do data, is disclose It you're it follow-up. If a to -- at already as physiological we you a free cover you're Otherwise, level.

the there. course, pause me let Of backlog,

XX million. Sorry, it's EUR

million. XX EUR

XX. million as is was backlog of September it of XX June The And XX? as what EUR

June me same let the XX, -- June -- of check But if let the but beginning it's me me let at check... it the year.

need and to David, we we to materials it reached a planning it the normally means because of book. can because is you physiological capacity the done different proper do we of which tell of level which all directionally backlog what different our factory, won't advance backlog, have we X need of amount weeks the but we call be to check in X,

demand of if you at impacted. to much responsive physiological So has it positive some special very geographies, like back which want the time is is level, Pacific, still apart which to order rest more the to our for what the we're could the logistics customer, where come even of see be, means that to side Asia from of we delivery

XX by so... EUR way, million, was it the June, In

is. it so Yes,

what are We the you physiological at, call, level.

So -- the June, it so EUR million same? was about it's about in okay, was it so XX

Yes.

Yes.

our comments. over the the if session. reached We I'd for comments you of back end have us are teleconference, further thank any no like to further time, today. turn or floor this today's for conclude joining to at I'd and all And like question-and-answer closing there

thank the disconnect for of today. you You participation do enjoy your may We now rest day. and your

you, everyone. Thank

you. Thank

Thank you.