Westwing Group (WEW) Q3 2024 earnings summary

Executive summary

• Achieved 3% year-over-year revenue growth and 2% GMV growth in Q3 2024, outperforming a declining market, with DACH segment growing 4% and outpacing the market by 9 percentage points.

• Westwing Collection share reached an all-time high of 58% of group GMV, supporting profitability.

• Continued execution of a three-step plan focused on complexity reduction, premiumization, and technology migration, including reorganizations in CEE and HQ.

• Brand positioning strengthened through campaigns and collaborations, notably the Iconic Pieces campaign and Meissen partnership.

• Full-year 2024 guidance for revenue and adjusted EBITDA confirmed despite ongoing restructuring and challenging market conditions.

Financial highlights

• Q3 2024 revenue: €95.8 million (+3% YoY); 9M 2024 revenue: €310.4 million (+4.3% YoY).

• Adjusted EBITDA for Q3 2024: €3.5 million (3.7% margin, +1.1pp YoY); 9M 2024: €13.7 million (4.4% margin, +0.4pp YoY).

• Gross margin improved to 50.5% in Q3 2024 (+0.7pp YoY), driven by higher Westwing Collection share.

• Free cash flow in Q3 2024 was €-6 million, mainly due to restructuring and seasonal inventory build-up; net cash at period end was €63 million.

• Net working capital remained negative at €-5 million at the end of Q3 2024, improving €3 million year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance confirmed: €415–445 million (-3% to +4% YoY); Adjusted EBITDA €14–24 million (3%–5% margin).

• Free cash flow expected to be break even for FY 2024, including complexity reduction investments.

• Stronger negative top line impact from premiumization and centralization expected in Q4, but profitability guidance also confirmed.

• Long-term target remains 10%–15% Adjusted EBITDA margin with strong cash conversion.

• Q4 performance is hard to predict due to market uncertainty and peak season importance.