Natuzzi S.p.A. (NTZ) 8 Apr 242023 Q4 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Natuzzi's Conference Call for 2023 Fourth Quarter and Full Year Financial Results.

As a reminder, interested parties can join this conference call live also via telephone by dialing in the following number, +1 (412) 717-9633, then passcode 39252103#, in addition to the link already provided to join via video. [Operator Instructions]

call today's on us are Mr. Joining Natuzzi's Achille, Chief Executive Mr. Officer; Antonio Founder Pasquale Mr. Executive Chairman; Natuzzi, and Silvestri, Carlo Officer; Financial Chief then Mr. Mario and De Legal Organization Officer; Mr. Gennaro, Chief HR, Diego Direnzo, and Division Babbo, Relations. Piero Global Retail Investor Officer;

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

room Financial to we Thank for Quarter Fourth the day you the Results. a joining introduction, everyone. for Year brief After Kevin, give you, good the session. for will XXXX and Thank and Natuzzi's call question-and-answer Full conference

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

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

and Thank from people Europe. you, good morning, Piero, and which good everyone, for afternoon are connecting

an of me to Then colleague, will what 'XX. of year 'XX I the my briefly the figures discuss and of together we Let long-term full start and objective. understanding our of the last are quarter provide doing with

we in performance last If in from effect, we decline and line general, industry of the we versus the durable from to where This in a of our branded and clearly our In quarter we consider condition sales for sales. backlog. let's is say, tough the important reported perspective market very what excess basically year, still a is a to So net XXXX tough Natuzzi this is strong reported brand is, quarter, XXXX. in last that starting It's year XXXX, transition last from from furniture market given work especially composed in entire significant, accelerate last company. that observed XXXX we of retail becoming the quarter, of but branded either in sales last a which Editions. XX%, have decline Natuzzi to in Italia throughout XXXX means the by particular, the the goods sales, or the decrease in in quarter the in quarter we had

a reported XX% XXXX. Natuzzi total of important a on from investor acceleration. completed been transformation the at Equally so was brand I a because that XX%, as nearly [indiscernible] you this story. which has if sales a in for beginning was of element the step later, XXXX, natural will retail retail believe percentage interested company, very is is I other or The people consequence becoming but the our discuss just in wish,

not we a really manner help globally evolve company. in that Now before investing business of years required at recognized and Diego establish itself in the later the tools the branded our company brand the more with and really segment for had comment full we also invest, will to by retail Natuzzi organization a a in especially we than implied XX Italia control also as and been as which to that should this Natuzzi to was market. This with and look of has to

XXXX the perspective, plan one-off and EUR last will effort. in XXXX perspective our and become following quarter which become visible more from that is on from and in a accelerating a full evident in the year. last X.X general we accrued restructuring are benefit area, year in fact, in In and cost cash that -- intervention other The quarter, executing million we of for fully visible restructuring

activity one-off with up the XX.X% XX.X%, last net quarter this in margin, the in which has compared been of compared quarter gross of quarter, last the our last XXXX. and In XXXX restructuring with XX.X%

are of a improving factory of These still on margin, impact trajectory a having we XXXX. a clearly So effect of the in last on as in the margin. figures key partial sub-utilization quarter

of the of we sense result. Looking XXXX I with full the that has that the compete in for of real the pretty public, it where the given in a postponement what line for this from compare X year, that confidence you apply majority again, with XXXX significant, years, if to And witnessed strong a backlog of estate very elements low us, at decrease we say after similar the in would people key caused are XXXX as the but with and been implication consumer, is net year underlying demand competitors. serve we the purchasing. lot of a

discussed restructuring. We about

of beginning there I geography rigid is which we from In starting give of to about. significant of talking labor believe a only, total reduced you units, of team, size XXX units, to which of total units, from operate, numbers law. XXX by few a XXXX achievement is the where what a because brings most from the you our give the Italy, the me equivalent the to XXXX XX.X% factory in especially X-X-X workforce, very reduction we Let we're

labor turmoil be benefit avoiding accurately step environment. This produce so to to will kind basis, yearly planned a on -- cost say, benefit let's every restructuring any and So yearly EUR compared accurately million of executed. And in did a our benefit on XXXX. running of, needs and we XX.X

million kept some area retail, which the again new and in EUR we opened enhancement. X factory DOS in X.X XXXX, EUR X.X million XX million EUR investing we of of In also

CFO the and on other will key So this our is provide highlight numbers some figures details. which then on

I Q&A, give strategic like the a you holistic and perspective. opening to more In would

target for furniture. of It's So and market the midterm we clear results adverse are it's well are clear potential. and figures evident XXXX an that our in those that below our reported effect

three to are there would I like that, said and messages key on. share elaborate Having

The we transformation brand the first company. really that now one have to is a completed become

huge is incredible to nearly which were origin, is segment. that branded, to XX% been because mentioned, company As has growth on achievement XX very Natuzzi the origin it was arrive its but story a an different huge, value and the I this much in years point investing considering very focused

selling at is best is and we're of configuration the So of in $X,XXX Currently in range Italia sold for of Natuzzi range U.S., in average the the product selling price ticket range U.S. the in in $XX,XXX. $XXX.

brand to So you much a legitimate to stretch. kind this can imagine takes of it do how

company. branded So first element, we are a

excel product distribution. DOS, us for the both the and format which which spread where right in Distribution operated a us, franchising, store important a Second distribute brand merchandising right also, and retail. remain is we very the we We through control wholesale element, experience. to is that Gallery, branded is format we is really called which or for direct invested again but

And hard is be in the last working following to now prepare on and the few transformation, what the it been very continuing accelerating a year last element, as which I is is months to mentioned, that pace year. in going and to we've getting

XXX detail, have perspective, some those store-in-store. stores So a then are Italia, the now or being operator. retail stores. galleries, about we we talking franchising DOS to some the are And Natuzzi Natuzzi more customer have XXX them Natuzzi, with Editions, being But which get the branded front, from

both deserve For us, attention. equal

number. of first quite really in the do really We were the account 'XX very investment a didn't so area, to sellout understanding worked program an For stores, to to have learn the sales significant retail much what's requires at we've how really historically, happening and store. store an in Doing the of because the control level. just

of have functional really buying, we people the a terms company what getting in, timely buy, become this our Now happening in transformation in of is store, consumer-centric a very is they and invaluable. understanding to and for what people

spread To them organization the market, them and the level Retail the first we productivity support make our our and could get we but systems, explicitly we to some that best to be really experience also called also available, knowledge our at has purpose serving which particularly progressively progressively dealer only dealer created XX because organization, operated we directly [indiscernible]. want of ago, created define stores, not the an practice, Excellence but that an months in Global this Division, across

we Let Diego invite me under this of what Global some do for chapter Retail Babbo Division. of examples a brief illustration

Thank you, to Good everyone. day Antonio.

can mindset Just factory the of from sector, has retail in to for do brand, I've purchasing and briefly, was put embracing evolution majority to the first let in downstream in witness place me cultural us, the development. environment, company, call Natuzzi what division this as On XX with adoption of introduce tools sustain years that is more retail our previous myself within to about. And company for a retail experience, last through order supported now while I'm working transition my And to roles for attending and the this established and many is saying, routines. within from the oil been the Antonio year construction of exactly, and lifestyle this which retailer top I than new the time. effort

appropriate to up in guidelines stores' generate ultimately and and processes set order retail within brand to increase experience is goal consistency Our profitability. the

or to retail partner is achieving willingness him performances. in and assisting respective each her manager regional the Our with network

of examples few achievements. a give me let But some recent

interaction at room XD launched store configurator, within trade the which recently efficient is community. allowing have level We more state-of-the-art a a local

global also with and our time for belonging revised a sense the for to system have store together boost scheme manager sales the the and the performance the employees. here We is of designer launch which, compensation intended first contest network DOS for of for

which a multi-language cherishing training time artificial network We top of by ever allow online reach all the our live through the with the addressing for with platform, classroom store stores Leveraging staff session Back to staff our brand-new attendees up. to XXX our are boosted also first on already results some with translator than in intelligence-driven good our needs in has Madrid. store the New of our instance, achieve representative proven you, to growth, York set already Ambassador and very more for Antonio. more in double-digit store will

Thank you, Diego.

that XXX quite Just potential to I have stores discuss story to long I upside all mean, branded the that we'll we of is objective by has mentioned performance then the working Global with a Then organic the Retail improve short, simply wholesales. and on organic the stores, China, you in make to terrific, in synthesis, growth. because think have division

XX% is within still strategic a important product. us branded So That wholesale, is business. the very part of as for distributed anticipated, still

we call that, Natuzzi for Program. Excellence So developed Commercial what we

One What X the standardizing it Basically things. format. is about? is

we So format. new defined gallery a brand

find you of come you about from a of providers basically, know on U.S., kind of floor. most large multi-brand lot furniture you retailer the So Natuzzi where -- to environment. business I a so of different think in is the card need maybe same the you

in express brand shopping a Given need to in like brand, confidence in want floor, the we environment, the our positioning that the presentation have happened to which fully the we of have the special of it potential stores. the brand our means role

appointed. wholesale, people So these topics we in on really organizational again the with invested

at commercial commercial Secondly, improving excellence of the performance program team. aims our the

people dealers. in are other organization, have roles which We employees, clients, at the dealing direct some agents, the XXX with different some with

the Natuzzi and really dealer, should Again, spread the are is managed center. standardizing methodology dealer needed very we organization, because that but budget also are control setting reinforce we So of and realized target we very can the to clear this approach be that by a productivity we they centrally.

concrete it's very of that sign company to which a opened X believe stores, front, to which year important actually we On a is X of where our a XXXX, I in that, remember cut commitment of show lot investment, the in America. to North retail

the one Manhattan have America, strive signature what as really example now, but can years [indiscernible] store Island, it's highest called environment. is is areas the infrastructure The retail really in Long different. Manhasset. very is to different North An you productivity. the of store and signature market name, to we they a open Miracle Manhasset, What is store connecting it's especially we know, with XX in ago, because might location, on that now. be very Natuzzi Our are open we Mile

we flagship an very new a when we Italia. is doing absolute which about this what Natuzzi talk open are is an new for example There, iconic store. really stores of And we now

the fully So a the potential perspective. brand in are the major, location appropriate investment of to and commercially express really they from brand major

market. Shifting before that, a of Maybe me individual comments do let gear restructuring. to on the couple

We We highest provide focus know, are you high. market. is company way operating is X as the under insight me doing Now important as we're on U.S., is our found markets, very interesting the new of some and business. quite is own pipeline discussed, and an galleries in franchising, priority we operated the of there U.S., its one let and X have store speak. X we we listed, Europe. the as believe is most additional directly where and remains an China On company which opened But where since gallery opportunity

Lou Mossotti more years We and North Scott press also was more with years, from Camp. Kruger taking developing wholesale is with he announced the the coming have America, the Lou Mossotti in stabilized us team And Jason the from XX baton is organization the of X. than than who experience release March really business. with same branded for X person then Camp Jason we in a on

covering, are but have one the this accelerate I yet a independent have letter, agent, state, didn't a we XX say direct priority, second rep. direct will basically which on where we also the To not now agents,

belief continent, currently So but large clear the back. distributed than no is case a significant and is XX a of successful it's there distributed is U.S. business longer and years, this Natuzzi coming XX, that for for state made more certainty were very a opportunity, under where being

where is background to The China. some would provide I other market like

are fact, stores, in of out more XXX the In XXX half, than China.

I because of the belonging consolidated. of number in on provide the some stores the stores, to have where store to we are productivity First, how JV the don't want majority the fact, to not read insight

we assess clients, entertain that the you So otherwise, stores but that sell. some the in is of important when we think just because might don't productivity you retail,

stores report P&L the the So when we because the the to for productivity be to need carved in look belong selling. at a sense, Natuzzi Italia, in that out are we store our XX, which

which the a P&L which plus report our only we deal production stores has For the been is Natuzzi JV this on in with are because the cost Editions, the the of in the markup majority, way structured.

shareholder, the the a financial Of we take of JV. course, full benefit then as growth of

in In retail needed the a global integrated company, JV way working. to we of our of that journey becoming the more recognized be

So this directly. happened through presence our

myself, times, now same Pasquale, back. to it possible the is visual. instance, we've with to personally working times comes team also several For when travel approach retail since the was been And X really merchandising but and it with

dealer to companies coming special opportunity celebrate year, it We Design on will are excited for Italia very to extraordinary arrive celebrate the is the to Week, Natuzzi of be our welcome also but which of and XX top milestone. environment business, a because Milan heritage, brand only and develop Natuzzi this some years event positioning XX in and that not can many not

Shanghai. at the important. now a the consequence the huge was increase are years comes imagine X largest We our anticipating as U.S. for the That's from have journey party, see is we you we just name on production produced of us a a third the level. for And the at through IT on can IKEA. also very level. since see performance is a client and build historically China at achievement, to JV -- City for We is can China to restructuring. It a was one, which markets. So ago, platform, was us, to our this system. operation few on performance Natuzzi, which that major Restructuring it the performance team I this it this, base is will the of integrating doing,

is that the us can but contract what product the business. to to from of in develop, and produce of of also for now something kind of market it to you move allow top means of terms instance, So imagine size which really terms in capabilities producing production

are by impossible, the achieving need world, stretch We hotel consequences but capacity one developing restructuring don't is is from almost resort global easy. And with been Italy a step. we restructuring in a -- that also Executing step leading X-star never a but a and is the we hotel in business has perspective, a are of huge Executing from it brand that anymore. much perspective. production

Now of terms it's numbers. becoming visible in

South out of kind in been get topic without Italy. any strike. when and this achieving I are mentioned, I you that result. we normally, you Italy, of people, XXX which assure strike can touch you then you get We've XXX go let As the of this before

far, EUR a million. insight We we most leading saving on so some we achieve restructuring on which on operations. this are achieved looking driving way a the full Mario, of the to us really And of at provide to XX.X net would I our notably more like has what force been in with but what want to forward restructuring

day Good Antonio. everybody. you, to Thank

myself I Just companies. experience than western heavy in other I'm in only like a investor joining event. quite because center, particular XX And Italy. Italy, cost first years in needed introducing few manage this situation or used not deep time am I to before more in cooperation as in have is which such like it's Unilever the in but different hours big relations context experience of

is invested have experience, important the and has them. the my already figure most important I to transformation is change What restructuring done of repeat that fair have the important in our future managing a Antonio the honestly, creating the all commercial also XXXX for competences, not the don't we journey, for people lot have we for a an of our their during for plan more I money this want project. underline than so are hours me program particular, In the for management example, just in of you an giving in in because we approach training reduction we future. to are just of up colleagues, for important in way for in highlighted side but our meantime, digital always that training redundancy, challenges will managed not rest terms factories transformation And realign a because managing the program. have for the in X.X all an of Italy, our for we but production of managing is a also skilling XXX,XXX our transformation and next colleague transformation only reskilling

the any that number fact with This easier we everything with said people. The some the to cultural have for people due can -- Antonio, that approach local an that as of of reduction you the which simpler, with different ethical and we supported exit. more good redundancy very, have we important a in months government, any And other already claim, is In me to is very the countries is let in usual it's some the deal legislation. cases, spent is strike. point me to several Natuzzi In without the with XXXX a manage it complex. reason of other say, union see government bit way the Italian managing also a the this find for having has. other cases, the for to we obviously, with acceleration Indeed, approach say, this to agreement let their in by agreed without

could sort And entire in this years. can... is the also of In that next those which Thank that you we couple particular, people, redundancy have you but this we using you, years. to And will in Antonio. Carlo the as which the next specific continue the be X better minutes, accrued of retirement. do you cost measures the out early reason of the in be see is reason following for that considered Thank will cash are will also the a in of for we Italy, that explain

and I'm I'm figures I the on might that open you, later double-click mentioned has. our you on. some the for questions we thank that sure questions suggest, then Carlo, audience said up sure we of there I Mario. be briefly

everyone. morning, go Mario, I I quickly Good their of notes. numbers. Antonio, the thank through very Diego for will some

in labor was be our X.X matter the related of corresponding costs, accounting liability noted the to the of as such of that Mario As arose liabilities soon and restructuring application about it the such fourth the quarter. EUR employees to mentioning, restructuring arrives million towards talking principal accrue as was has

it the X quarter. we other need but gross have in planned, So cannot half will we in previous impacted in we pay course, at the was the margin. it of short, years. and next we accrue financial the our the This, perspective, half paid of to way From look almost

If Antonio for in restructuring we align condition of control costs did supplier. year better How margin level sales will neutralize the this deducting we it cost margin And quarter. the last XXXX inventory able having better XXXX previous impact a improvement all will year. XXXX because the homogenous the and a a the effect, new the provide achieve the renegotiation of activity. all in that XXXX in but of that confirming continuous so for and with management, provide comparison did XX%, I the achieve year. manage the the the these purchase, are then gross XX.X%, previous because this closed Not improvement at we volume, a the at at a XX.X% will versus that? XX.X% of with consumption we also the gross costs we -- of only to investor cost for controlling were full goes

can terms that include retail about expenses from selling the expenses, able of an in and XX.X% impact expenses, selling our transportation cost. selling were expenses of of from to quality Briefly the XX.X%, numbers and the to the and renegotiation, in the we see compensate we hiring operating also in administrative expansion of our almost network talking that a case improve the in this in the through overall about details especially to personnel, XXXX this volumes lower expenses

justified we million, constantly the and workforce. our EUR XXXX, for course, our did is finance from million This, net of while in of for because where X.X X.X of the XX.X%. XXXX XXXX, that EUR are to EUR further in one costs, account we manager we X.X of last is this on of reduction to government While X.X word approval we company can and perspective. And XXXX for the our top then and in million focus EUR contribution for us be digitalize brought million EUR did X.X EUR in A did expenses, achieve that, of did an in of always need from X.X% million work lower increase impact terms XXXX, XXXX bank have for the and administrative X.X to this impacting outstanding the we also working partially overall floor interest we million X%, specifically average but will XXXX. invest of XXXX X.X% we of in in debt of negative our average did in now for but increase leave were X.X% the from questions. the to of on I it

Kanen Our first David question from Wealth [Operator from is today Management. Kanen Instructions] coming

first been different up? including Have -- is to regards see stimulus worked on starting I government and started in working interest where to the an rates. they're one turn inflection China. things to know measures, you bottomed The have has lowering there

in spend, on comment I because feel X months of China. I me I X believe, So let out equipped. China,

actually really visiting those of some stores. And were

So I visited those XX we furniture what in are stores. A share of mall. call fair

what in still furniture. very floor, a traffic but the can The different continue store, to department you So be have category of low. U.S. floor we on is by imagine

other global, find of Gucci firm much what full you deep still have market larger to very happened happening China China. is loss to you carrying way say, witnessed us, recovery. reported than in in to are believe needs Evergrande, I XX% insight, you're witnessing its So a that what's let's to

it's versus you can imagine more the fashion. durable, spending even for loss sensitive So in

we story is Natuzzi kind which long see what, initial to brand, say So Edition, a affordable of more of rebounce. our for symptom

is really yet, Milan are our of use best working way not Week this dealer. reengage Italia with to because Design key this we and Natuzzi the For to a

So in as definitely company. Natuzzi pay we strengths far, the off distributor the of are, largest by that are we because confident China will

have competitors dozen stores. of few Our

stores. We XXX have

really So months The the still timing and macroeconomic we're China. this will confident strong our weeks and P&L of terms on consumer exact visible when be in of uncertain highly a will strongly become because China in upside. environment is

to then have And rest the a of an Okay. of with especially XXXX? the to improvement see world, started or America, North in bit orders written stabilization little start you

see we definitely to They comes business. it North on the of performing area sign America, do performing stronger a in So improvement XXXX. are of when

with dealing I'd of of a China. think still But to than it's are in China, in We tale rebound faster compared U.S. say, of business legitimate expect channel. overstocking to I the a

in in branded are the We where, week, we really team for basically speak, have market we High we Point the offer the that believe as support from and the on Mario, our we will Again, a can to peak we're be we close better also, with is eyes U.S.. having today, do the rest of but what strong wholesale business, compelling very the to again, we a market. bringing starting

definitely the On the historical on the retail, we stores new regime, are are at performance working improved. one by quickly one to opening bring

we to stores. I we the you we range X if stores terms North if the XX% XX%, the take XX productivity, the top take For store in improvement and XXXX, if of take the same can America XX X and but top in but in first stores of internal to it, didn't like-for-like productivity mention the it instance, first be compare the

that in years, in means it X, step huge So done being stores managing U.S. X we've in terms a able of to

X they're $X at first million. and million above all now, stores $X pacing The

if you North a a across is terms very, -- of in retail strong improvement definitely, America. look in in So cycle there very

footprint believer Okay. and American integrated. you North guys becoming I'm vertically big a Yes, expanding your in

be assets American into have that will you, know or point, that because buck redeploying -- in footprint real it you you that up some assuming North estate in Italy, your the there? to liquidated that bang most are I expanding sale specifically like capital High to get for for So comes the non-core in you those seems Point that back capital and

absolutely is yes. answer The

audience. think our with it's discussed which that be with minor important So been include some approval. the in in Italy retail. for of We has potential the company will strategy, Board [indiscernible] disinvestment has I North to nonstrategic for assets, America the the in long-term broader which And North in of the Point, then sales asset tannery a agreed share reinvesting Board the and High include priority that

our The priority will long-term other transformation. be supporting

to deviating in our that Italy. reduce we especially our us, create for to create are shareholders in which clear. aligned retail, way North value The is the So our mind, there for journey. way base factory The bit America absolutely in of from value and Board with to is is very cost the in not one and

redeploying those funding. funding, So are David, additional we if to have only going those the be way we're

regards the the XXX-person going forward? selling in $XX.X in goods then cost million expense? to primarily some sold And savings, does in show is Or number headcount Okay. it of up of that and reduction

It's [indiscernible] comment more precise in each particular I the in believe a be answering. I let goes service, Mario will in Carlo, Carlo but cost can where Mario, account let of I'll but getting goods combination sold of precisely and you

No.

As that margin impact we our in you in are will staff a few Obviously, contribution impact G&A being an improving central Antonio, reducing in the more have positive said, years. and also our obviously, first contribution next our we margin -- -- are also efficient factory. the

because the breakeven over these and have there's the changed did of of EBIT of size to last that million, doing all company lowered XXX cost better the it's really line that we top a the XXX XX because also instead EUR really reported different this selling needed but unbranding restructuring the and mix cash We work tell company million, EUR in the a versus the just reducing account. its conversion. XXXX and just base years branded about But of and you, because of XXXX, same and ability tier comparison the investment

on sales. If the will to really we or sales we aspire, economic there return be need standpoint upside huge, reach we an aspire we now focus half sales investment. the of standpoint, So from huge the the from

expenses to be cost X.X that and impacting just million Antonio, sold. precise, selling administrative we goods of EUR the are we have more or only in the rising expenses on

million automation achieve $X some of of million unit In million operated X back stores theory, $XX more we incrementally $XXX million next headcount or us a Carlo, XX margin investments with a let's One That could -- at million per Okay. sorry, XX% $XX $XX into I better? the question give we factories give in in million, here or go would at year would ask, over At at $XX $XX say, at I the to the that the queue. America. us the to revenue, average in XX about roughly would new million million I'm before quarter to about in years, gross revenue. quarter a reduction, if million volume. $XXX have $XX North direct revenue

or... Antonio I May

the with [indiscernible]. David was for in capacity you addressed but Yes, your to question you obviously

say we to in going of Let's how margin, better are that in cost. absorb of the more as to direction of fixed terms course, adding that improvement

sales So of we and even is forward. going are those we If course, more XX% if had where we have...

integrated contribution a And contribution margin again, producer fair this Dave current guidance, don't the high-level -- but with XX%, Natuzzi which do at the XX%, sales Italia, sales retailer I to On modeling. the we our -- margin, plus provide have productivity. of point, it's we for means some integrated think

that in XXX let's XX% of and are organic, course, let sense you, a million EUR with me means say be targeting structure it definition, we build So same north productivity by the if business. with already marginality XX%, of say, will that of because

Okay.

So the And cuts U.S. the it of upturn. Hopefully, Federal in housing. starting we're inventory. a bounce in next well There's Reserve somewhat positioned sounds the interest see here we're to more like rates. during

improve. start to our things crossed keep we'll fingers So this spring, at

any further there no comments. like to closing questions [Operator over Instructions] And or at the time, for I'd turn if back are further floor this

guys, closing I invite the who's years for then, company, be we going the to who XX course, is is created person did I who who of celebrating the and a Listen person clear, We're we Pasquale, do comment my me company remark. final very on the but doing. are potential very from the know confident what is very we upside. and different. This is story very committed year, tough

call. terrific. in upside do market this I you to final if with our, on investing being thank You're any remarks valuation Mr. as in Pasquale, for in awareness investor, this a don't strong evaluation, The is Chairman, there and believe of retail really I participant you significant it. us company thank do but as let's with say, wish. us for any brand a an company. is our . I'll And today let you being

explaining. Okay. way Antonio, have very you for the thank been much you

war we are much obviously very I are what confidence our facing. You management. in and much is in we CFO, today, very go very confident what doing, confident same also much very business Ukraine, our and and consumer feel environment, The about and we believe East, are mean difficult resource Babbo Diego the know future. war low. Middle Carlo, management human the in about we in I even this

we very are again. obviously, you you thank dear you, conference everyone, will better to And much, of certainly. a for shareholders, attending all very this call. I result Thank much -- committed we

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

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