Westwing Group (WEW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 11% year-over-year to EUR 120 million, driven by a successful January sales event and expansion, including a UK market launch in February.

• Adjusted EBITDA reached EUR 9.6 million (8.0% margin), up EUR 0.5 million year-over-year, reflecting investments in expansion.

• Free cash flow was negative at EUR -2.0 million, with net cash at EUR 84 million, up EUR 27 million year-over-year, despite EUR 3 million in share buybacks.

• Expansion into new markets and additional stores contributed significantly to top-line growth.

• The business transformation and value creation plan remain on track, focusing on scaling and operating leverage.

Financial highlights

• Gross margin improved by 1.3 percentage points to 52.9% year-over-year, aided by lower inventory depreciation and higher Westwing Collection share.

• Contribution margin rose by 1.9 percentage points to 34.1%, driven by better purchasing and higher own collection share.

• Adjusted EBIT margin was stable at 4.9% year-over-year; adjusted EBITDA margin at 8.0%, slightly below last year due to expansion investments.

• DACH segment revenue grew 3% year-over-year; international segment up 22%, with international margin improving by 0.2 percentage points.

• Net working capital remained negative at minus EUR 6 million, improving year-over-year.

Outlook and guidance

• Full year 2026 guidance confirmed: revenue EUR 470–495 million (+5% to +10% yoy), adjusted EBITDA EUR 36–48 million (8–10% margin).

• Q2 top-line trends similar to Q1 but at a slightly lower magnitude; normalization expected after early sales event.

• Tougher year-over-year comparisons expected in H2 2026 due to strong prior-year performance.

• Focus remains on profitability and cash flow improvement while executing the value creation plan.