Westwing Group SE Sees Strategic Shift and Margins Rise

Westwing Group SE, under research by NuWays AG, has seen business adjustments impact its Q1 performance. The company emphasized a strategic shift towards a more premium product range. This transition resulted in a 5% year-on-year decrease in GMV to €119m and a 1% drop in sales to €108m. The focus on premium products has led to an 11 percentage point increase in private label share and a decreased number of active customers and orders.

Despite a flat top line, margins have improved. Adjusted EBITDA rose by 44% year-on-year, reaching €9.1m. The firm's margin climbed 2.7 percentage points with benefits from higher private label share, improved fulfillment efficiency, and reduced marketing and overhead costs.

Looking forward, results are expected to stabilize in late 2025, with substantial growth anticipated in 2026. This is driven by market expansion and improved operations, aligning with an unchanged target price of €18.00 per share. The current assessment remains a "BUY" recommendation.