Westwing Group SE: Updated guidance for the FY 2022
Westwing Group SE / Key word(s): Change in Forecast
Munich, August 10, 2022 // Westwing Group SE (“Westwing”, “the Company”) revised its outlook for the full year 2022.
Based on the Company’s recent trading with a third quarter to date 2022 Gross Merchandise Volume (GMV) decline of -10% vs prior year driven by worsening macroeconomic conditions, Westwing revised its outlook for the full year 2022.
While Westwing originally expected to return to a positive revenue growth rate in the second half of 2022 with improving consumer sentiment, the Company currently expects no short-term improvements given the overall macro environment with accelerating inflation in its key markets, the war in the Ukraine, and a resulting material reduction in consumer confidence. Hence, second half 2022 revenues are now expected to be below the second half of 2021. Consequently, Westwing expects revenues for the FY 2022 between EUR 410 million and EUR 450 million with a growth rate of -22% to -14% (previously: lower half of guided Revenue range between EUR 460 million and EUR 540 million with a growth rate of -12% to +3%).
Based on the adjusted growth expectations, additional margin investments to reduce inventory levels and already implemented cost reductions, Westwing now plans for an Adjusted EBITDA of EUR -15 million to EUR 0 million at an Adjusted EBITDA margin between -4% and 0% for FY 2022 (previously: Lower half of guided Adjusted EBITDA range between EUR -9 million and EUR +16 million at an Adjusted EBITDA margin between negative 2% and positive 3%).
While the Company remains very confident in the long-term Home and Living eCommerce market potential and Westwing’s strategy, it can at the moment, given the potential longer lasting macroeconomic challenges, not provide a reliable timeframe by when to achieve the communicated mid-term targets of EUR 1bn in revenues and more than EUR 100 million Adjusted EBITDA. For FY 2023 Westwing expects to return to being at least Free Cash Flow neutral.
Westwing will publish its half year financial results 2022 on August 11, 2022. Regarding the exact definition of the alternative performance measures GMV and Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2021, which has been published on the Company's website.
Westwing Group SE
Moosacher Straße 88
80809 München, Germany
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|Company:||Westwing Group SE|
|Moosacher Straße 88|
|Fax:||+49 (89) 550 544 445|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1417987|
|End of Announcement||DGAP News Service|