Westwing Group SE Anticipates Improved Margins Despite Sales Decline

On August 7th, Westwing Group SE will release its Q2 earnings, expected to show decreased GMV and sales. This decline aligns with the company’s shift toward the Westwing Collection. With GMV projected at €110m, a 4% year-over-year reduction, sales are anticipated at €101m, or a 5% drop.

The rising share of the Westwing Collection, estimated to account for 63% of products, drives gross margin increases. This collection shows a GMV growth of 15% year-over-year. Consequently, an overall gross margin rise to 51.2% is forecasted, despite a decrease in gross profit.

Expected improvements in fulfilment efficiency will raise contribution margins to 32.1%. Although sales decline, the adjusted EBITDA is set to increase by 36% to €4.6m.

Q2 foresees a negative free cash flow of €-2.4m due to inventory investments. However, a positive FCF of €12.3m is projected for the full year.