Westwing ends FY 2019 with 949,000 Active Customers;
double-digit, profitable growth in the fourth quarter
- Fourth quarter with profitable growth: 12% revenue growth and 3% Adj EBITDA; full year with 5% revenue growth and -4% Adj EBITDA due to weak H1
- Strong balance sheet: Westwing ends the year with negative net working capital and net cash balance of EUR 73 million
- Continued strong customer loyalty: Number of Active Customers increased by 23,000 quarter-over-quarter to 949,000 per end of FY 2019
- Strategic priority Own & Private Label share increased to 24% of Gross Merchandise Volume (GMV) in 2019 (+8 percentage points yoy)
- Outlook 2020: Focus on customer growth and mitigating the impact of the COVID-19 situation. Revenue growth of 5-10% expected; Adj EBITDA expected to be moderately better than 2019, returning to profitability by 2021. Guidance excludes any potential impact of the evolving COVID-19 situation.
Munich, March 19, 2020 // Westwing, the leader in inspiration-based Home and Living eCommerce in Europe, today announces the preliminary results for the financial year of 2019.
Westwing ended the financial year of 2019 with a solid fourth quarter, which returned to profitable growth of 12% year-over-year (at EUR 88m revenue) and 3% Adj EBITDA (at EUR 3m). The return to double-digit growth was based on continued strong customer loyalty as well as operational improvements. Westwing successfully scaled up marketing and offered customers a strong seasonal offering in the second half of 2019. As a result, the number of active customers increased by 23,000 to 949,000 in Q4.
Full year 2019 financials were affected by the weaknesses of the first half of the year. Revenue increased by 5% to EUR 267m (FY 2018: EUR 254m) and Adj EBITDA margin was -4% (FY 2018: 1%). While these results are below Westwing's ambition level, the second half of the year showed clear improvements based on solving most of the underlying problems of the weaknesses in the first half of the year:
- Customer growth momentum returned with an addition of 23,000 Active Customers in Q4, also based on strong customer loyalty with more than 80% of orders placed by repeat customers in 2019
- The International segment returned to growth in the second half of the year with problems in the Italian business being addressed
- The share of Own and Private Label products continued to increase to 24% of Group GMV in 2019 (+8 percentage points year-over-year). Two exclusive Westwing Collections have been launched in 2019 and received positive response from Westwing customers. They showcase bestsellers that combine the most recent trends with affordability and high quality
- Operations have stabilized after disruptions in the first half year of 2019. Westwing now operates a cost-efficient warehouse footprint in five European warehouses
- Westwing has a net cash balance of EUR 73m and is well prepared for the future, including potential disruptions from the COVID-19 situation
"We were able to finish the year 2019 strong. While the first half of the year was marked by challenges, our team has solved the underlying issues step-by-step based on thorough execution as well as complexity reduction throughout our business", says CEO Stefan Smalla. "How our team has reacted has demonstrated that building the company we envision is in our own hands, and the opportunity ahead of us remains significant. In the current COVID-19 situation, we are focused primarily on the well-being of our team, partners, and customers - we are well prepared and are taking any action necessary."
Westwing expects revenue growth of 5-10% in 2020 and Adj EBITDA moderately better than 2019, returning to profitability by 2021. This outlook is subject to the further development of the COVID-19 situation.
Westwing's annual report FY2019 will be available on March 27, 2020. For further information, please visit Westwing's investor relations website at: www.ir.westwing.com
|Key performance indicators
|Own & Private Label share (in %)
|GMV (in EUR m)
|Number of orders (in k)
|Average basket size (in EUR)
|Active customers (in k)
|Average orders per active customer LTM
|Average GMV per active customer LTM (in EUR)
|Mobile visit share (in %)
|Results of operations
|Revenue (in EUR m)
|Adj EBITDA (in EUR m)
|Adj EBITDA margin (in % of revenue)
Note: All figures are preliminary and unaudited.
Westwing is the leader in inspiration-based Home and Living eCommerce in Europe with EUR 267m of revenue in 2019. Through its 'shoppable magazine', Westwing inspires its loyal, mostly female customers with a curated product selection and combines that with gorgeous content. With unparalleled loyalty, Westwing is generating more than 80% of sales from repeat customers. Westwing's mission is: To inspire and make every home a beautiful home. The company was founded in 2011 and is headquartered in Munich. Westwing went public on the Frankfurt Stock Exchange in October 2018 and is active in eleven European countries.
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
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