- Revenue increased by 19.6% year on year to EUR 175.2 million in the first nine months of 2018
- Profitable at 0.7% Adj EBITDA margin in the first nine months of 2018
- DACH segment with substantial revenue growth of 42.8% in the first nine months of 2018
- Roll-out of complete business model progressing well: Share of Private Label sales increased by 7 percentage points year on year to 18% of Group GMV in the third quarter of 2018
- Full year guidance confirmed: Revenue growth between 15-20% and Adj EBITDA margin of 1-2%
Munich, November 20, 2018. Westwing continued its growth path in the third quarter of 2018. Revenue increased by 19.6% in the first nine months and by 15.0% in the third quarter of 2018 despite unusually warm weather in Europe affecting eCommerce in general. This positive development was led by the DACH segment, showing significant growth of 42.8% in the first nine months and 33.2% in the third quarter of 2018.
Based on its loyalty-driven business model Westwing further expanded its active customer base by 14.8% to 921 thousand active customers, at the same time increasing the number of total orders and share of wallet with its customers. In addition, in line with Westwing's strategy, the share of Private Label products increased strongly by 7 percentage points year on year to 18% of the Group's gross merchandise value (GMV) in the third quarter of 2018.
Stefan Smalla, Founder & CEO of Westwing, said: "We continue to drive profitable growth fuelled by our customer loyalty. In our DACH market and going forward increasingly in our international markets, we are inspiring our customers with our full offering across daily themes and permanent assortment, both supported by our own label and private label business. We plan to make our offering even more exciting and invest into technology and organic marketing, so we improve the overall experience for our customers."
Westwing is profitable at 0.7% Adj EBITDA margin in the first nine months of 2018 (first nine months of 2017: -5.0% Adj EBITDA margin). Strong unit economics, a highly efficient marketing model and a lean cost base paired with operating leverage supported the improvement of the Adj EBITDA margin.
Westwing will continue to invest into further growth and the roll-out of its complete business model across its markets. The company confirms its outlook for the full year of 2018 and expects revenue growth between 15% and 20% and an Adj EBITDA margin of 1-2%.
For more information, please visit our corporate website at: www.westwing.com.
| KEY FIGURES |
9M 2018 |
9M 2017 |
CHANGE |
Q3
2018 |
Q3
2017 |
CHANGE |
| KEY PERFORMANCE INDICATORS |
|
|
|
|
|
|
| Private Label share (in %) |
15% |
9% |
6pp |
18% |
11% |
7pp |
| GMV (in EUR m) |
202 |
171 |
18.0 % |
63 |
56 |
10.9% |
| Number of orders (in k) |
1,673 |
1,498 |
11.7% |
507 |
496 |
2.1% |
| Average basket size (in EUR) |
121 |
114 |
5.6% |
124 |
114 |
8.6% |
| Active customers (in k) |
921 |
802 |
14.8% |
|
|
|
| Average orders per active customer in the preceding 12 months |
2.6 |
2.6 |
-1.6% |
|
|
|
| Average GMV per active customer in the preceding 12 months (in EUR) |
307 |
297 |
3.5% |
|
|
|
| Mobile visit share (in %) |
73% |
69% |
4pp |
74% |
71% |
3pp |
RESULTS OF OPERATIONS
|
|
|
|
|
|
|
| Revenue (in EUR m) |
175.2 |
146.4 |
19.6% |
54.7 |
47.6 |
15.0% |
| Adj EBITDA (in EUR m) 1 |
1.2 |
-7.3 |
8.5 |
-1.6 |
-2.3 |
0.7 |
| Adj EBITDA margin (in % of revenue) |
0.7% |
-5.0% |
5.7pp |
-2.9% |
-4.9% |
2.0pp |
1 We calculate "Adj EBITDA" by adjusting EBITDA for (i) share-based compensation expenses, (ii) IPO costs recognized in profit or loss (for periods after January 1, 2018) and (iii) central costs allocated to discontinued operations.
About Westwing
Westwing is the leading brand and platform in Home and Living eCommerce in Europe with EUR 248m of revenue in the last 12 months. 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 85% of sales from customers who visit the company's sites and apps on average 100 times per year. Westwing's mission is: To inspire and make every home a beautiful home. The company was founded in 2011 and is headquartered in Munich. It went public on the Frankfurt Stock Exchange in October 2018. It is active in eleven European countries.
Disclaimer
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.
Corporate Communications
Christian Falkowski
presse@westwing.de
+49 69 92187464
Investor Relations
Vidhi von Liel
ir@westwing.de
+49 89 550544 377
20.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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