Westwing reports third quarter 2022 results
EQS-News: Westwing Group SE
/ Key word(s): 9 Month figures
Westwing reports third quarter 2022 results
Munich, November 10, 2022 // Westwing, the leader in inspiration-based Home & Living eCommerce in Europe, announced its results for the third quarter of 2022.
Westwing delivered EUR 88m in revenue in the third quarter of 2022 (Q3 2021: EUR 103m) at a negative year-over-year growth rate of -14%. This implies a revenue growth CAGR of +14% vs. the third quarter of 2019 with the company being a lot larger than 3 years ago. The third quarter growth was in line with recent management expectations, as weak consumer sentiment persisted throughout the third quarter, weighing on topline development across all countries and customer segments. Notably, entering the seasonally strongest fourth quarter of 2022, Westwing recorded a typical seasonal uplift in topline, confirming FY 2022 revenue guidance expectations.
In terms of profitability, Adjusted EBITDA for the period amounted to EUR -4.5m (Q3 2021: EUR -0.4m) corresponding to an Adjusted EBITDA margin of -5.1% (Q3 2021: -0.3%). The declining profitability year-over-year mainly resulted from lower scale vs. Westwing’s higher cost base. In order to return to Adjusted EBITDA profitability and positive Free Cash Flow in FY 2023, Westwing has taken further decisive cost saving measures. On top of the EUR 15m in annual cost savings previously communicated, Westwing implemented an additional EUR 15m in annual savings across general and administrative expenses, marketing, and CAPEX, bringing the total annualized reduction to EUR 30m vs. the run-rate of the first quarter of 2022.
Next to implementing cost saving measures, Westwing also successfully managed its cash balance through decisive net working capital improvements in the third quarter. As a result, net working capital decreased by EUR 11m vs. the second quarter of 2022. Cash and cash equivalents stood at a very strong EUR 64m as per the end of the third quarter of 2022 - reflecting a stable cash position vs. the previous quarter (Q2 2022: EUR 64m).
In accordance with the strategic priority of positioning Westwing Collection at the core of the next growth phase, the Westwing Collection share increased to an all-time high of 44% of overall group GMV in the third quarter of 2022, an increment of +6 percentage points vs. previous year. This further underscores the Company’s strategic progress of rapidly building-up the Westwing Collection to a target of 50% Group GMV share through further assortment expansion as well as higher visibility across all channels.
“We have taken necessary measures in this undoubtedly challenging environment,” said Andreas Hoerning, CEO. “With the recent cost savings, we have set the base to return to profitability in FY 2023 and our disciplined liquidity management has also begun to show first results. At the same time, we are excited about the progress we have made on unleashing Westwing’s full potential. The first indications on how these strategic decisions will impact our business are very positive and showcase the huge opportunities ahead of us.”.
Westwing also shared two updates on its management team: Delia Lachance returned full-time from maternity leave in her role as Chief Creative Officer. “I am super happy to be back at Westwing after maternity leave. It’s exciting to work with our new CEO Andreas and our amazing team on taking Westwing to the next level!”, says Delia Lachance.
Furthermore, starting January 2023 Rik Strubel will join the Westwing team to drive marketing strategy and work on Westwing’s full potential in his new role as Chief Marketing Officer. In his former position as CMO & Corporate SVP Digital for Henkel Beauty Care, he was responsible for all global marketing activities, innovation, digital transformation and direct-to-consumer expansions. In addition to 20 years of diverse sales and marketing experience in large corporations, Rik Strubel co-founded a fashion brand and held a co-CEO position at a Beauty holding company.
Webcast and Conference Call
Westwing's Q3 2022 earnings call will be broadcasted via live stream on November 10, 2022 starting at 10:00 AM (CET) on the Company's investor relations website: https://ir.westwing.com. The recording of the live stream will be available thereafter at this site.
For further information, please visit Westwing’s investor relations website at: ir.westwing.com.
Westwing Group SE
Note: All figures are unaudited.
Westwing is the leader in inspiration-based Home & Living eCommerce in Europe with EUR 522m of revenue in 2021. Through its 'shoppable magazine', Westwing inspires its loyal home enthusiast 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 fulfillment centers, inaccurate personnel and capacity forecasts for fulfillment centers, 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.
End of publication
10.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
|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:||1483581|
|End of News||EQS News Service|