Original-Research: Westwing Group SE (von NuWays AG): BUY

Classification of NuWays AG to Westwing Group SE

Company Name:	Westwing Group SE
ISIN:	DE000A2N4H07
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 23.5
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Blowout Q4 prelims as value creation plan bears fruit; PT UP

Westwing raised its FY25 guidance implying blowout Q4 figures particularly on adj. EBITDA and cash generation as the value creation plan is increasingly bearing fruit. In detail:

GMV in Q4 grew by 9% yoy to € 163m (eNuW old: € 158m) driven by a particularly strong performance during the Black Week sales event and at year-end; FY25 GMV grew by 2% yoy to € 507m. Accordingly, sales in the fourth quarter increased by 6.7% yoy to € 143m with FY25 sales coming in at € 449m (eNuW old: € 446m). In sum, this should largely be the result of management’s transformation efforts, incl. a stronger premium brand positioning, adjusted product assortment and the ongoing European expansion (9M international sales were up 1.5% yoy vs. slightly declining DACH sales).

Margins, the true star of the show. In Q4, the group’s adj. EBITDA margin stood at a whopping 15% (+7.3 pp yoy), clearly beating our old 9.6% estimate. With this, adj. EBITDA jumped by 110% yoy to € 21.6m (eNuW old: € 13.5m). FY25 adj. EBITDA to now come in at € 43m (eNuW old: € 34.8m). The reasons are simple (1) ongoing tight cost control, (2) a rising Westwing Collection share, (3) operating leverage and (4) fast order processing.

FY25 guidance raised. Following the particularly strong Q4, management now expects around € 449m sales (old: € 425-455m) and adj. EBITDA of € 42-45m (old: € 25-35m).

Superb cash generation. In FY25, WEW generated € 25m of cash, notably above our old estimate of € 10m thanks to the better than anticipated operational performance, fast order processing (i.e. better inventory turn) and high cash conversion (lower receivables, higher payables). With this, net cash at the end of FY25 increased to € 94m (eNuW old: € 79m).

FY26e to remain on a growth track // European expansion ongoing. WEW should be able to continue growing in FY26, largely carried by the International segment. Mind you, in FY25 WEW entered ten additional European markets with early signs of success already visible with Q3 figures. As WEW continues to build scale across Europe, the next strategic leap should be the UK, a high-potential market that could significantly expand its addressable market reach and validate the brand’s ability to replicate success beyond the EU.

Valuation remains undemanding. Shares are trading at a mere 4.2x EV/adj. EBITDA FY26e (~37% of the market cap is covered by net cash) while management’ value creation plan is being delivered like clockwork. Mind you, WEW is back on a growth path with gradually improving margins as operating leverage is kicking in and strong cash generation. This clearly underpins our view of WEW being a high-reward investment case at a still attractive entry point.

We reiterate our BUY rating and keep WEW in our AlphaList with a slightly increased € 23.50 PT (old: € 22.00), based on DCF. - change of analyst -
 

You can download the research here: westwing-group-se-2026-01-19-update-en-0b209
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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