Westwing Group SE Shows Positive Growth Amid Challenges

Westwing Group SE's recent trading update indicates that sales and adjusted EBITDA for FY 2024 will likely reach the upper end of the projected range. Despite a muted consumer sentiment, the company reported an annual gross merchandise volume (GMV) increase of 3.3% year-over-year to €497 million, attributed to a bigger average basket size and a slight growth in active customers.

Sales are expected to total €443 million, aligning with the top end of guidance. Additionally, adjusted EBITDA guidance was updated to the higher end at €20 million, thanks to an enhanced gross margin spurred by an increased private label share. This improvement has positively impacted profitability.

Westwing also reported a free cash flow (FCF) of €9 million for FY 2024, surpassing prior estimates, and maintained a strong net cash position despite a share buyback program. For FY 2025, limited growth in demand is expected, with sales projected to rise by 3.4%.