In Q1 2024, Westwing continued to grow in a declining market and improved adjusted EBITDA margin further

In Q1 2024, Westwing continued to grow in a declining market and improved adjusted EBITDA margin further

• In Q1 2024, revenue grew 6% year-over-year to EUR 109 million in a declining market.
• The number of active customers increased year-over-year for the first time since the end of the pandemic (+2% year-over-year).
• The contribution margin increased to 32% (+4pp year-over-year). 
• Adjusted EBITDA amounted to EUR 6 million at an adjusted EBITDA margin of 5.8% (+0.9pp year-over-year).
• Westwing’s adjusted EBITDA profitability and a strong net working capital of EUR -18 million resulted in a free cash flow of EUR 4 million in Q1 and a net cash position of EUR 82 million at the end of March 2024.
• The Westwing Collection share increased by 5 percentage points year-over-year to 51% of Group GMV.

Munich, 7 May 2024 // Westwing Group SE (“Westwing” or “the Company”), Europe‘s #1 in Beautiful Living e-commerce, announces its results for the first quarter of 2024.

Westwing continued its growth trajectory in the first quarter of 2024 with both Gross Merchandise Volume (GMV) and revenue up by 6% year-over-year. Revenue amounted to EUR 109 million. Growth was also driven by a growing number of active customers, which - for the first time since the end of the pandemic - saw a positive year-over-year growth of 2%.

With regards to profitability, Westwing reported EUR 6 million of adjusted EBITDA in the first quarter of 2024 (Q1 2023: EUR 5 million), corresponding to an adjusted EBITDA margin of 5.8%. The improvement in adjusted EBITDA profitability was supported by the continued expansion of the high margin Westwing Collection and improvements in fulfilment costs. The Westwing Collection reached an all-time high of 51% of overall Group GMV in the first quarter of 2024, an increase of 5 percentage points compared to previous year’s Q1. The contribution margin increased by 4 percentage points year-over-year to 31.8%. 

Westwing’s positive adjusted EBITDA and a strong net working capital of EUR -18 million led to a free cash flow of EUR 4 million in Q1 2024 and a net cash balance of EUR 82 million at the end of March 2024. 

The good financial results in a still weak market environment prove the strength and potential of Westwing’s commercial model. The Company will continue the transformation to build a less complex platform that enables the business to scale with operating leverage going forward. In parallel, Westwing continues to strengthen its premium brand positioning. Besides ongoing investments into brand awareness in Germany, Westwing presented the design highlights of the Westwing Collection, e.g. the newly launched sofa ‘WOLKE’, as well as a collaboration with the prestigious fabric house Dedar Milano in an immersive exhibition during Milan Design Week in April.

Dr Andreas Hoerning, CEO of Westwing, commented: "Westwing’s continued strong performance compared to market is the result of our clear strategy and excellent execution and underscores the strength of our commercial model. On top, we were able to increase our adjusted EBITDA margin while investing further into our brand. We are clearly on track to become Europe’s leading premium one-stop destination in Home & Living."

Outlook 2024
Westwing confirms its outlook for FY 2024, published in March 2024. Due to the ongoing challenging market environment and expected topline losses from the complexity reduction in Italy and Spain, Management remains cautious and expects high uncertainty for the remainder of the year. The Company expects revenue of EUR 415 million to EUR 445 million at -3% to +4% year-over-year growth and an adjusted EBITDA of EUR 14 million to EUR 24 million (+3% to +5% adjusted EBITDA margin).

Webcast and Conference Call
Westwing's Q1 2024 earnings call will be broadcasted via live stream on 7 May 2024, starting at 10:00 AM (CEST) on the Company's investor relations website https://ir.westwing.com. The recording of the live stream will be available on the same site.

Westwing's Annual General Meeting is scheduled for 19 June 2024. 

For more information, please visit the Westwing Investor Relations website: https://ir.westwing.com

Key performance indicators Q1 2024 Q1 2023 Change Westwing Collection share (in %) 51% 46% +5pp GMV (in EUR m) 125 118 +6% Number of orders (in k) 676 694 -3% Average basket size (in EUR) 185 169 +9% Active Customers LTM (in k) 1,282 1,262 +2% Average orders per Active Customer LTM 2.2 2.3 -6% Average GMV per Active Customer LTM (in EUR) 381 373 +2% Mobile visit share (in %) 81% 79% +2pp

 

About Westwing

Westwing is Europe’s #1 in Beautiful Living e-commerce, with EUR 481 million GMV (Gross Merchandise Volume) across 11 countries in 2023. As Europe’s premium one-stop destination for Design Lovers we offer a unique brand experience with a carefully curated assortment of our Westwing Collection and 3rd party design brands. The integrated platform combines Shop, Club-Sales, (offline) Stores, the B2B Service (Westwing Business) and our Westwing Design Service. Our team consists of more than 1,700 professionals working together on our shared purpose to “Excite people to create homes that unlock the full beauty of life”. Founded in 2011, Westwing is headquartered in Munich and went public on the Frankfurt Stock Exchange in October 2018.

Disclaimer

Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and the Company undertakes no obligation to update or revise these statements. The Company’s actual results may differ materially and adversely from any forward-looking statements discussed in this press release due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous material / conditions in production with regard to private labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.

Contact
Westwing Group SE
Investor Relations
E-Mail: ir@westwing.de