Westwing Group (WEW) Q2 2024 earnings summary

Executive summary

• Achieved 5% GMV and 4% revenue growth year-over-year in Q2 2024, with adjusted EBITDA of EUR 3.9–4 million (3.7%–4% margin), despite challenging market conditions and increased brand investments.

• Completed restructuring in Italy and Spain, launched a new SaaS-based tech platform in two countries, and entered Portugal, the first new market in a decade.

• Westwing Collection share reached 53% of GMV in Q2 2024, up 7 percentage points year-over-year.

• Net cash position at quarter-end was EUR 72 million, providing strong downside protection.

• Progressed on a three-step plan: global product assortment, SaaS platform migration, and premium brand positioning.

Financial highlights

• Q2 2024 revenue reached EUR 106 million (+4% YoY); GMV grew 5% YoY.

• Gross margin increased by 0.4 percentage points year-over-year to 50.6%; contribution margin improved by 1.8 percentage points to 30.6%.

• Adjusted EBITDA margin was 3.7% in Q2 2024, down 0.7 percentage points year-over-year.

• Free cash flow for H1 2024 was -EUR 3 million, mainly due to net loss, restructuring, and working capital changes.

• CapEx ratio for H1 2024 was around 2%, in line with last year.

Outlook and guidance

• Full-year 2024 guidance confirmed: revenue between EUR 415 million and EUR 445 million (growth of -3% to +4%), Adjusted EBITDA between EUR 14 million and EUR 24 million (margin 3% to 5%).

• Profitability development remains in line with guidance; free cash flow for full year 2024 expected to be breakeven.

• Anticipates stronger negative top-line impact in H2 2024 from global assortment and premiumization.

• Long-term target: adjusted EBITDA margin of 10%-15% with strong cash conversion.