MILAN, Oct 6 (Reuters) - RBRItalian furniture maker

Natuzzi expects its U.S. revenues to undershoot its

target by around 20% and come in at 85-90 million euros in 2025

due to a 15% tariff imposed by the Trump administration on

furniture imports, and a weaker dollar.

"The U.S. market was and remains fundamental for us, and

it's hard to replace for a high-end brand like ours," Mario de

Gennaro, Chief HR, Organization & Legal Officer, told Reuters.

The company is listed on the stock market in New York and

generates just under a third of its annual revenue in North

America.

Natuzzi, headquartered in Santeramo in Colle, close to the

city of Bari in southern Italy, said the combined impact of

tariffs and a roughly 14% depreciation of the dollar against the

euro has left it on course for a revenue shortfall of about 20

million euros this year compared to its initial projection of

over 100 million.

Following the tariff hike from 10% to 15% in April, Natuzzi

experienced a temporary slump in U.S. sofa sales, with volumes

initially dropping 30%. While the situation has since

stabilised, consumer prices in the U.S. have risen 5-6% for

directly managed stores and up to 15% via other retailers.

"The market sets the price. And if consumers see a price

they consider too high, they end up turning to U.S. competitors

who benefit from the tariff situation and the weaker dollar," he

added.

Natuzzi, which ended 2024 with 319 million euros in revenues

and employs 3,200 people globally-2,000 of them in

Italy-recently reshored part of its Asian production to its

plants in Puglia to serve the U.S. market. That decision

shielded the company from higher tariffs on Asian-produced

goods.

The sales crisis in the U.S. is affecting Italian factories.

However, De Gennaro ruled out the possibility of Natuzzi

producing in the U.S., but warned that further production shifts

could pose risks to Italian jobs.

The company is in talks with Italy's Labour and Industry

Ministries and unions to explore measures to safeguard domestic

manufacturing.

(Editing by Keith Weir)