Westwing Group (WEW) Q3 2024 earnings summary

Executive summary

• Achieved 3% revenue growth and 2% GMV growth year-over-year in Q3 2024, outperforming a declining market, with DACH segment growing 4% and outpacing the German online home and living market by 9 percentage points.

• Continued strategic shift to a more premium, global product assortment, impacting short-term top line but strengthening brand positioning; Westwing Collection share reached an all-time high of 58% of group GMV.

• Transformation and complexity reduction measures completed in Italy, Spain, Central and Eastern Europe, and headquarters, with related restructuring costs recognized.

• Successful rollout of new SaaS-based technology platform in up to six countries, ahead of plan.

• FY 2024 guidance for revenue and adjusted EBITDA confirmed despite ongoing restructuring and challenging market conditions.

Financial highlights

• Q3 2024 revenue: €95.8 million (+3% YoY); 9M 2024 revenue: €310.4 million (+4.3% YoY).

• Adjusted EBITDA for Q3 2024: €3.5 million (3.7% margin, +1.1pp YoY); 9M 2024: €13.7 million (4.4% margin, +0.4pp YoY).

• Gross margin improved to 50.5% in Q3 2024 (+0.7pp YoY), driven by higher Westwing Collection share.

• Free cash flow in Q3 2024 was €-6 million, mainly due to seasonal inventory build-up and restructuring expenses; net cash at period end was €63 million.

• Net working capital remained negative at €-5 million at the end of Q3 2024, improving €3 million YoY.

Outlook and guidance

• Full-year 2024 revenue guidance confirmed at €415–445 million (-3% to +4% YoY); adjusted EBITDA guidance: €14–24 million (3–5% margin).

• Stronger negative top line impact from premiumization and assortment transition expected in Q4; Q4 performance remains unpredictable due to peak season and market conditions.

• Profitability development remains in line with guidance; long-term target is 10%-15% Adjusted EBITDA margin.

• Free cash flow for full-year 2024 expected to be break-even, including all one-off costs.