Westwing Group AG: Preliminary indications for Q2 2020 results and updated guidance for FY 2020

Munich, July 16, 2020 // Westwing Group AG ("Westwing") releases preliminary and unaudited information related to Q2 2020 results and an updated guidance for full year 2020.

Based on preliminary indications, Westwing experienced a very strong Q2 2020 with revenue growing by c. 90% compared to Q2 2019. This very strong growth was driven by increased demand from existing customers as well as an acceleration of new customer acquisition across the Company's whole country portfolio, caused by an accelerated shift towards online channels. As a result, the number of Active Customers having made at least one order in the last twelve months increased to approx. 1.2m. GMV in the first 15 days of July grew by c. 65% year-over-year.

Adjusted EBITDA margin Q2 2020 is expected to be between 12-14%, a significant improvement of at least 20%pts compared to the previous year (Q2 2019: Adjusted EBITDA margin -8.5%). This improvement was driven by a strong contribution margin based on the success of the measures implemented during FY 2019 and Q1 2020 in combination with scale effects due to increased revenue levels. Based on the improved profitability and supported by net working capital effects, Free Cash Flow improved to c. EUR 23m in Q2 2020 (Q2 2019 Free Cash Flow: EUR -9m). Net Cash Balance per June 30, 2020 was at EUR 86m compared to EUR 73m at December 31, 2019.

In light of these developments, Westwing updates its guidance for FY 2020. Westwing expects 25-35% revenue growth compared to FY 2019 (previously: 5-10%) and an Adjusted EBITDA margin of 3-5% (previously: moderately better than FY 2019 where Adjusted EBITDA margin was at -3.8%) for the full year 2020.

Westwing will publish its full Q2 2020 results and the half-year report on August 13, 2020. Regarding the exact definitions of the alternative performance measures GMV (Gross Merchandise Volume) and Adjusted EBITDA as well as the definition of Active Customers the company refers to the corresponding definitions in its Annual Report 2019, which has been published on the Company's website.

Contact
Lorenz Erik Wittjen
General Counsel
ir@westwing.de

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.