Westwing returns to growth with fourth profitable quarter in a row
EQS-News: Westwing Group SE
/ Key word(s): 9 Month figures
Westwing returns to growth with fourth profitable quarter in a row
Munich, November 9, 2023 // Westwing Group SE (“Westwing” or “the Company”), Europe‘s No.1 in Beautiful Living e-Commerce, announces its results for the third quarter of 2023.
Despite a challenging market environment, Westwing successfully returned to top-line growth and reported a GMV of EUR 107 million in the third quarter of 2023 (Q3 2022: EUR 102 million).
Based on Westwing's premium love brand strategy, the strong focus on the exciting Westwing Collection and the successful integration of the Shop and Club offering for customers, GMV per Active Customer increased by 6% year-over-year to EUR 377 in the third quarter of 2023 (Q3 2022: EUR 355). Although the number of Active Customers1 still decreased year-over-year in the third quarter of 2023, it increased quarter-over-quarter for the first time since the pandemic.
Revenue in the third quarter of 2023 developed in line with GMV and amounted to EUR 93 million, an increase of 5% year-over-year (Q3 2022: EUR 88 million).
In terms of profitability, Westwing reported its fourth profitable quarter in a row. The Company reported an Adjusted EBITDA margin of 3% and an Adjusted EBITDA of EUR 2.4 million in the third quarter of 2023 (Q3 2022: EUR -4.5 million), representing a significant increase of EUR 6.8 million compared to the previous year.
Overall, Westwing generated an Adjusted EBITDA of EUR 11.9 million with an Adjusted EBITDA margin of 4% in the first nine months of 2023 (9M 2022: EUR -8.5 million and -3%). The improvement in profitability was driven by an increased share of the high-margin Westwing Collection, strong fulfilment efficiencies and the successful implementation of cost saving initiatives in the G&A area.
Westwing maintained negative Net Working Capital despite weaker seasonality and the full repayment of its supplier finance arrangements in the third quarter of 2023. This contributed to positive Free Cash Flow of EUR 3 million in the third quarter of 2023 (Q3 2022: EUR -1 million), an increase of EUR 4 million compared to the previous year.
In the first nine months of 2023, the Company generated a Free Cash Flow of EUR 13 million, a very significant improvement of EUR 44 million year-over-year (9M 2022: EUR -31 million). Furthermore, Westwing maintained its strong financial position with net cash of EUR 69 million as of September 30, 2023.
The Company's strategic priority of rapidly building up the Westwing Collection to a target of over 50% of the Group total GMV continues to develop positively. The share of the Westwing Collection increased by 4 percentage points year-over-year to an all-time high of 48% of Group GMV in the third quarter of 2023. The main drivers for the successful development are the improved product assortment and increased visibility in all channels.
Another strategic initiative – “OneWestwing” – reached an important milestone with OneCart & OneCheckout now live in Germany, Austria and Switzerland. This means that both Shop and Club items can be added to one single cart and one single checkout. This enables a seamless shopping experience across the Westwing Shop and Westwing Club offering.
More recently, Westwing presented a redesigned visual identity for the first time since the founding of the Company twelve years ago, including a new logo, a modernized typography and vibrant color palette. The new design is part of the Company’s strategic initiative to clearly position Westwing as the leading European premium brand for Home & Living. The Company's evolution is embodied in the "Live Beautiful" brand awareness campaign recently launched in Germany. As a result, Westwing will continue investing into brand awareness in the fourth quarter of 2023.
“We are pleased to report that Westwing has returned to growth despite unfavorable market conditions. At the same time, we achieved the fourth profitable quarter in a row,” says CEO Andreas Hoerning. "Our dedicated emphasis on profitability and operational efficiency has delivered favorable results, enabling us to navigate confidently through a persistently challenging market environment."
Top-line growth is expected to continue in the fourth quarter of 2023. This quarter will also reflect strategic investments into brand awareness.
Based on the recent results and expectations for the fourth quarter of 2023, management raised its Adjusted EBITDA guidance for the full year 2023 as of November 6, 2023. The Company now expects to achieve an Adjusted EBITDA of EUR +13 million to EUR +19 million with a margin of 3% to 4% (previously: in the upper half of the range of EUR +4 million to EUR +13 million with a margin of 1% to 3%). This update is mainly driven by a better outlook for the fourth quarter of 2023 based on stronger than expected preliminary October results. The full year 2023 revenue guidance is confirmed in the upper half of the range of EUR 390 million to EUR 440 million.
Webcast and Conference Call
Westwing's Q3 2023 earnings call will be streamed live on the Company's Investor Relations website (https://ir.westwing.com ) on November 9, 2023, starting at 10:00am (CET). A replay of the live stream will be available on this page afterwards.
For more information, please visit the Westwing Investor Relations website: https://ir.westwing.com
Westwing is Europe‘s No.1 in Beautiful Living e-Commerce with EUR 431 million in revenue in 2022 across 11 countries. The premium one-stop-shop for Design Lovers is offering a unique brand experience with a curated assortment of the Westwing Collection and the best design brands. The integrated platform combines Shop, Club Sales, offline store, B2B services and Westwing Studio. The team consists of 1,900 professionals working together towards a shared purpose to “excite people to create homes that unlock the full beauty of life”. Founded in 2011, Westwing is headquartered in Munich and went public on the Frankfurt Stock Exchange in October 2018.
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.
 Active Customer defined as customer who have made a valid order within the last 12 months per end of the respective quarter.
|Westwing Group SE
|Moosacher Straße 88
|+49 (89) 550 544 445
|Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
|EQS News ID:
|End of News
|EQS News Service