10 Best Italian Stocks To Buy Now

02. Natuzzi S.p.A. (NYSE:NTZ)

Upside Potential: 428.73%

Latest Average Share Price Target: $23

Natuzzi S.p.A. (NYSE:NTZ) deserves its spot among the ten best Italian stocks to buy now due to its impressive financial turnaround and strategic positioning in the luxury furniture market. The company has effectively expanded its margins and strengthened its retail presence, especially in North America, making it a compelling investment opportunity. The firm’s focus on enhancing its brand and operational efficiency has resulted in strong financial performance, demonstrating resilience and growth potential in a challenging macroeconomic environment.

In the first quarter of 2024, Natuzzi S.p.A. (NYSE:NTZ) reported invoice sales of approximately EUR 84.5 million, aligning closely with the prior year. This stable performance amid geopolitical turbulence in emerging markets such as Russia and the Middle East highlights Natuzzi’s ability to maintain a solid revenue base. One of the standout aspects of the quarter was the robust growth of the company’s directly operated stores, which reached EUR 20 million, an increase of 13% year-over-year and 10% compared to 2022. Notably, sales from North America surged by almost 30% compared to Q1 2023, signaling the effectiveness of the company’s strategy to become a more retail-centric business.

Natuzzi S.p.A. (NYSE:NTZ) gross margin improved significantly to nearly 37%, up by 1.5 percentage points from 2023 and by seven percentage points since 2019, underscoring the success of its margin-expansion efforts. The company’s operating profit for the quarter stood at EUR 0.6 million, a substantial improvement from a loss of EUR 0.9 million in the same period last year. This achievement reflects Natuzzi S.p.A. (NYSE:NTZ) effective cost management and strategic initiatives, which have lowered the company’s breakeven point and enhanced profitability.

Furthermore, Natuzzi S.p.A. (NYSE:NTZ) continues to leverage its strong brand equity across key markets like the United States, China, and Europe. The company’s focus on strengthening its wholesale relationships and expanding its retail footprint has positioned it well for future growth. The launch of new retail formats and innovative product collections has also resonated positively with both partners and consumers, setting the stage for sustained revenue growth. With a clear focus on expanding margins, enhancing brand value, and optimizing its geographical presence, Natuzzi S.p.A. (NYSE:NTZ) is poised for continued success, making it a top choice for investors seeking exposure to high-quality Italian stocks with strong growth potential.