Westwing Group (WEW) Q4 2024 earnings summary

Executive summary

• Revenue grew 4% year-over-year to EUR 444 million, reaching the upper end of guidance, despite a challenging market and a strategic shift to a more premium product assortment.

• Adjusted EBITDA reached EUR 24 million (5.4% margin), up 1 percentage point year-over-year, with cost savings, operational improvements, and brand investments offsetting negative impacts from assortment changes.

• Free cash flow was EUR 9 million after restructuring costs; net cash stood at EUR 69 million post share buybacks.

• Completed the second phase of a three-step transformation plan, including a new tech platform rollout, reorganizations, and a more premium product assortment.

• Published first CSRD Sustainability Statement and achieved significant advances in supplier engagement and emission reduction.

Financial highlights

• Revenue increased 4% year-over-year to EUR 444 million; Q4 revenue grew 2%.

• Adjusted EBITDA was EUR 24 million (5.4% margin), up 1.2 percentage points year-over-year.

• Contribution margin per order improved by 29% year-over-year, with a 3.3 percentage point increase as a share of revenue; gross margin rose to 50.8% (+1.1pp).

• Free cash flow reached EUR 9 million, including restructuring expenses; net cash at year-end was EUR 69 million.

• CapEx increased to EUR 10 million (2.3% of revenue), mainly for tech platform, logistics, and one-off warehouse investments.

Outlook and guidance

• 2025 revenue expected between EUR 425–455 million (-4% to +2% year-over-year), reflecting ongoing headwinds from premium assortment shift and weak consumer demand.

• Adjusted EBITDA guidance for 2025 is EUR 25–35 million (6–8% margin), with free cash flow expected to be clearly positive in double digits.

• No significant restructuring adjustments anticipated for 2025.

• Ambition to return to significant growth in 2026, targeting upper single to double-digit revenue growth and adjusted EBITDA margin above 10% mid-term.