Westwing Group (WEW) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined by 1.1% year-over-year to EUR 107.5m, mainly due to a shift toward a more premium, global product assortment and subdued consumer sentiment.

• Adjusted EBITDA margin improved by 2.7 percentage points year-over-year to 8.5%, reaching EUR 9.1 million, reflecting higher gross margins and cost discipline.

• Net result turned positive at EUR 2.5 million, reflecting a successful turnaround and profitability focus.

• Free cash flow was negative at EUR -8.9 million, primarily due to seasonal inventory build-up, with net cash position at EUR 56.9 million at quarter-end.

• The three-step value creation plan's first two phases are complete, with ongoing expansion and brand strengthening, including new country and store launches.

Financial highlights

• Gross margin improved to 51.5% in Q1 2025 (+0.2pp year-over-year); contribution margin rose to 32.2%.

• Adjusted EBITDA improved from minus EUR 2 million in Q1 2022 to plus EUR 9.1 million in Q1 2025.

• DACH segment revenue grew 1% year-over-year; International segment declined 3.6%.

• Marketing expenses decreased to 11.8% of revenue, and general/admin expenses fell to 16.1% of revenue.

• CapEx was EUR 2 million (2% of revenue), with reduced investment in internally developed software.

Outlook and guidance

• Full-year 2025 guidance confirmed: revenue expected between EUR 425m and EUR 455m (growth rate -4% to +2%), Adjusted EBITDA between EUR 25m and EUR 35m (margin 6% to 8%).

• Negative top-line effects from assortment changes expected to bottom out by end of 2025.

• Profitability expected to follow seasonal trends, with ramp-up costs increasing as expansion continues.

• Ambition for upper single- to double-digit growth in 2026, with continued margin improvement.