Westwing Group SE Outperforms Expectations in Q2 Review

Westwing Group SE has reported a solid set of Q2 results, surpassing margin expectations despite a decline in sales and gross merchandise value (GMV). The company’s GMV aligned with forecasts at €110 million, marking a 4% year-on-year (yoy) decrease. This reduction was attributed to a strategic shift towards a premium product offering, causing a 9% decline in active customers. However, the average order size increased by 31% to €260.

The internal brand, "Westwing Collection," saw growth, capturing 65% of GMV, an 18% increase yoy. Despite a 6% sales drop to €100 million, improved freight rates and the consolidation of logistics operations led to a gross margin improvement to 52.6%. Fulfilment expenses fell by 11%, resulting in a contribution profit reaching €33.4 million, a company record.

Administrative costs decreased substantially, leading to a notable 60% increase in adjusted EBITDA to €6.2 million. With positive operating leverage anticipated in FY26, Westwing maintains a BUY recommendation with a revised target price of €20.00.