DGAP-News: Westwing Group AG
/ Key word(s): 9 Month figures
Westwing Reports Third Quarter 2019 Results
Munich, November 7, 2019. Westwing, the leader in inspiration-based Home and Living eCommerce in Europe, today announced the results for the third quarter of 2019.
Westwing returned to growth in the third quarter with revenue of EUR 59 million (Q3 2018: EUR 55 million) and double-digit GMV growth of 13%. Revenue growth improved in the DACH segment at 15% as well as in the International segment, which returned to growth for the first time since 2018. Impacted by Westwing's increased marketing investments as well as customary summer seasonality, profitability was at -7% adjusted EBITDA margin.
New product releases supported a continued increase in Own and Private label share to 27% of Group GMV in the third quarter, up by +9 percentage points year-over-year. This resulted in an all-time high gross margin for the Group of 44.3% (+1.5 percentage points year-over-year).
Having improved its operating performance by addressing logistics and cost inefficiencies through the completion of its large warehouse move to Poznan (Poland), Westwing managed to increase its contribution margin to over 20% in the third quarter of 2019 (Q3 2018: 18.3%).
Westwing's increased marketing investments saw first returns in the third quarter with active customers growing to 926,000 (Q3 2018: 921,000). To further drive the growth of its customer base, Westwing increased the share of high-converting low price point items in its assortment. Customer loyalty continued to be high with 81% of orders from repeat customers.
Westwing's net cash position remains strong at EUR 68 million.
In the fourth quarter, focus for Westwing will be on strong product offering, the silent running of its operations leading to a strong contribution margin, operating leverage on its SG&A cost base as well as returns from its increased marketing investments through further customer base growth.
"We have seen substantial progress in the third quarter with double-digit GMV growth and a strong contribution margin. This shows that the measures we have implemented have been successful", said Stefan Smalla, Founder and CEO of Westwing. "We will continue investing in marketing to drive our future growth and are expecting further improved results in the fourth quarter."
Westwing confirms its updated guidance of 6 to 12% revenue growth at the lower end for the full year and adjusted EBITDA margin of -3.5% within a range of -1% to +1%. Free cash flow is expected to be positive for the remainder of the year and to not exceed outflows of EUR -29 million for the full year.
Westwing will publish its key financial figures for the Financial Year 2019 on March 19, 2020.
For more information, please visit the Westwing corporate website at: www.westwing.com
07.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Westwing Group AG|
|Moosacher Straße 88|
|Phone:||+49 89 550 544 377|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||906617|
|End of News||DGAP News Service|