Investor Relations

Westwing with significantly improved profitability in Q1 and strong growth, inspiring more than 1 million active customers

DGAP-News: Westwing Group AG / Key word(s): Quarterly / Interim Statement
12.05.2020 / 08:00
The issuer is solely responsible for the content of this announcement.

Westwing with significantly improved profitability in Q1 and strong growth, inspiring more than 1 million active customers

  • Significant progress on 2020 key objective "More customers". Threshold of 1 million active customers in the last twelve months reached in early April
  • Positive start into FY2020: Revenue growth of 10%, significantly improved Adj EBITDA margin to -1.8% and continued strong net cash position of EUR 65m in the first quarter of 2020
  • Q2-to-date with significantly accelerated growth at c. 80% year-over-year, yet due to COVID-19 limited visibility for the second half of the year; selective disruptions in supply chains; focus on health & safety
  • Guidance unchanged: Despite very strong start into 2020 and Q2 acceleration, limited visibility for remainder of the year

Munich, May 12, 2020 // Westwing, the leader in inspiration-based Home and Living eCommerce in Europe, today announced the results for the first quarter of 2020.

Westwing had continued strong growth momentum in the first quarter of 2020 and reached the threshold of 1 million active customers in the last twelve months in early April, significantly faster than previously expected.

Driven by its loyal customer base, Westwing delivered a strong quarter for the third time in a row: In Q1 2020, revenue grew by 10% year-over-year to EUR 68m and Adj EBITDA margin improved significantly to -1.8% (Q1 2019: -6.3%). The improvement in profitability was driven by better Gross Margins due to higher Own & Private Label share and an efficient fulfillment setup. Free Cash Flow for the first quarter improved by EUR 10m year-over-year to EUR -6m (Q1 2019: EUR-16m), resulting in a net cash position of EUR 65m at the end of the first quarter.

During the COVID-19 pandemic, the utmost priority of Westwing remains the health and safety of its customers, teams, and partners. To live up to this priority, Westwing has introduced or enhanced strictest hygiene standards, including investments in personal protective equipment, enhanced cleaning of all warehouses and offices, and introduction of shiftwork in some warehouses that better allow for effective social distancing. In addition, Westwing has implemented several initiatives early on to prepare its supply chain processes. So far, the business has continued to develop well despite the challenging times.

On the demand side, Westwing is growing very strongly with revenue growth of c. 80% Q2-to-date driven by an accelerated channel shift from offline to online supported by Westwing adjusting its offering and loyalty model accordingly. While this very strong growth has been visible across all customer cohorts, across all countries, and across the whole product portfolio, there is as of now limited visibility into how demand might develop in the second half of the year.

On the supply side, selective disruptions, especially in Asia, have continued and Westwing has taken several measures to mitigate these risks, such as acquiring additional stock, securing alternative sources for out-of-stock risk products and implementing alternative shipping routes. These efforts have been successful in enabling Westwing to deliver the strong growth.

"The safety of our customers, team, and partners continues to be our number one priority. I am proud how our team have pulled together and are delivering on our mission to inspire and make every home a beautiful home.", says CEO Stefan Smalla. "We have taken all necessary measures to manage and further drive the recent strong growth and have adapted customer communication, marketing, and merchandizing accordingly. While we have limited visibility into the second half of the year, I have high confidence that Westwing is well prepared and pursuing the right strategy, focused on further growth as a result of the loyalty of our customers and reaping strong profitability from that going forward."

Despite the strong Q1 2020 and very high growth in Q2-to-date, Westwing's guidance for the full year 2020 remains unchanged due to high uncertainty for the second half of the year.

For further information, please visit Westwing's investor relations website at:

  Q1 2020 Q1 2019 Change
Results of operations      
Revenue (in EUR m) 68 61 +10%
Adj EBITDA (in EUR m) -1 -4 +3
Adj EBITDA margin (in % of revenue) -1.8% -6.3% +4.5 pp
Key performance indicators      
Own & Private Label share (in %) 25% 21% +4 pp
GMV (in EUR m) 85 76 +12%
Number of orders (in k) 675 591 +14%
Average basket size (in EUR) 127 129 -2%
Active customers (in k) 986 927 +6%
Average orders per active customer LTM 2.5 2.6 -1%
Average GMV per active customer LTM (in EUR) 324 318 +2%
Mobile visit share (in %) 76% 75% +1 pp

Note: All figures are unaudited.

About Westwing
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

12.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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