Westwing continued with profitable growth in Q4 2023 and confirms updated FY 2023 guidance

• Westwing´s GMV in the fourth quarter of 2023 reached EUR 147 million, with an increase of +4% year-over-year.
• Positive quarter-over-quarter growth of Active Customers continued in the fourth quarter of 2023.
• Full year GMV 2023 amounted to EUR 481 million (+0% year-over-year); FY 2023 revenue development is expected to be very slightly below GMV development.
• Management expects Adjusted EBITDA in the upper half of the updated FY 2023 guidance of EUR +13 million to EUR +19 million.
• Westwing achieved positive Free Cash Flow in the fourth quarter of 2023 and FY 2023, resulting in a net cash increase year-over-year.
• The share of the high-margin Westwing Collection continued to grow in the fourth quarter of 2023, leading to a full year improvement of +6 percentage points year-over-year to 47% of Group GMV in FY 2023.

Munich, January 29, 2024 // Westwing Group SE (“Westwing” or “the Company”), Europe‘s No.1 in Beautiful Living e-Commerce, announces preliminary and unaudited trading information for the fourth quarter and the full year 2023.

Based on preliminary unaudited results, Westwing delivered a second consecutive quarter of growth in the fourth quarter of 2023 with EUR 147 million in Gross Merchandise Value (GMV) (Q4 2022: EUR 142 million), representing an increase of +4% year-over-year. This growth is also based on a growing number of Active Customers, which increased for the second consecutive time quarter-over-quarter and confirms the appeal of the Westwing brand and its products.

Despite the challenging macroeconomic environment throughout 2023, Westwing managed to maintain previous year´s GMV level of EUR 481 million for FY 2023. Revenue development is expected to be very slightly below GMV development. Accordingly, revenue for FY 2023 is expected to be in the upper half of the guided range of EUR 390 million to 440 million.

In terms of profitability, Westwing expects a positive Adjusted EBITDA in the fourth quarter of 2023. This leads to the Company’s expectation to report an Adjusted EBITDA for FY 2023 in the upper half of its updated guidance (updated FY 2023 Adjusted EBITDA guidance: EUR +13 million to EUR +19 million). Westwing delivered on its promise to return to a positive Adjusted EBITDA for FY 2023 and its expectation to return to growth in the second half of 2023. In addition, Westwing achieved a positive Free Cash Flow in the fourth quarter of 2023, leading to a positive Free Cash Flow for FY 2023 and an increase in net cash year-over-year.

In accordance with the strategic priority of positioning the beautiful Westwing Collection at the core of the next growth phase, Westwing Collection reached a share of 47% of the Company’s GMV in FY 2023 (FY 2022: 41%). This represents a +6 percentage point increase compared to the previous year, based on strong improvements in each quarter of 2023. This supports the Company’s strategic progress of building up the Westwing Collection to a target of 50% share of GMV through further expansion of the assortment as well as higher visibility across all channels.

In terms of brand development, the year 2023, and in particular the fourth quarter of 2023, has been very successful. In the second half of 2023, Westwing launched its new brand awareness campaign “Live Beautiful”. This included a refreshed premium corporate identity, beautiful out-of-home advertising, and collaborations with celebrities. For instance, in the fourth quarter of 2023, Westwing cooperated very successfully with well-known footballer Lukas Podolski, actor Jaime Lorente, best known for his roles in “Money Heist” and “Élite”, and famous TikTok personality Lena Mantler. Through these partnerships, the Company generated more than 15 million social media impressions and was able to successfully address new customer segments.

Westwing will publish its Annual Report for FY 2023 including the outlook for FY 2024 on March 28, 2024.

For more information, please visit the Westwing Investor Relations website: https://ir.westwing.com

Note: All figures are unaudited.

About Westwing

Westwing is Europe‘s No.1 in Beautiful Living e-Commerce with EUR 431 million in revenue in 2022 across 11 countries. The premium one-stop-shop for Design Lovers is offering a unique brand experience with a curated assortment of the Westwing Collection and the best design brands. The integrated platform combines Shop, Club Sales, offline store, B2B services and Westwing Studio. The team consists of 1,900 professionals working together towards a shared purpose to “excite people to create homes that unlock the full beauty of life”. Founded in 2011, Westwing is headquartered in Munich and went public on the Frankfurt Stock Exchange in October 2018.

Disclaimer

Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and the Company undertakes no obligation to update or revise these statements. The Company’s actual results may differ materially and adversely from any forward-looking statements discussed in this press release due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous material / conditions in production with regard to private labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.
 

Contact
Westwing Group SE
Investor Relations
E-Mail: ir@westwing.de