Original-Research: Westwing Group SE (von NuWays AG): BUY

Classification of NuWays AG to Westwing Group SE

Company Name:	Westwing Group SE
ISIN:	DE000A2N4H07
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 23.5
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Q2 with strong growth, confirming the investment case
Growth accelerated further to the strongest print in years, with GMV up 15% yoy to € 127m and revenue up 14% to € 113m. The drivers were the ongoing successful country expansion, especially with the recent UK launch (International GMV grew 22%, revenue +19% yoy € 54.0m), new store openings and well performing sales events in Germany (DACH GMV grew 9%, revenue +10% yoy to € 59.4m) despite the generally weak consumer sentiment; customers are buying, but increasingly timing purchases to event windows. Third-party GMV rose 23% against 11% for the Westwing Collection, taking the WWC share to 63% (-2pp yoy), a reflection of successfully onboarded partner design brands rather than own-brand weakness, negatively impacting the gross margin by 0.7pp (51.9%).
Adj. EBITDA of € 5.4m (4.8% margin, -1.5pp yoy) was burdened by a 2.6pp increase of the fulfilment ratio. Roughly 1pp (some € 1.4m) of that was from the migration to the new order and warehouse management system, having a one-off character. The remainder was due to higher transportation costs from elevated fuel prices, the changed mix effect (low-ticket items are more expensive to ship in relation to their price) and higher DHL fulfilment to increase customer satisfaction. Note that the migration itself is a positive as it allows faster shipping, flexible delivery options and better warehouse efficiency going forward.
Guidance confirmed, with revenue now indicated in the upper half. Management reaffirmed FY26 revenue of € 470-495m (5-10% growth. eNuW old: € 475m) and adj. EBITDA of € 36-48m (eNuW: € 42m). With H1 revenue of € 233m, the implied H2 growth stands at 4-9% despite the successful UK launch and the three Baltic launches came at end-July. Management hence pointed towards the upper end of the revenue target (eNuW new: € 493m). We leave adj. EBITDA estimates unchanged due to mentioned brand marketing investments in Q4 to further accelerate the momentum across new markets.
Cash down qoq, but for the right reasons. Net cash fell € 16m qoq to € 68m (+ € 18m yoy) and FCF was € -9.4m (Q2 25: € -4.5m), driven by a € 9.5m stock option settlement plus € 3.5m of buybacks. Two thirds related to pre-2020 legacy programmes struck at € 3.1. Terminations and forced exercises should remove c. 70% (1.4m) of legacy options by end-Q2 2027. Importantly, those have an avg. strike price of € 18.4 (~ 30% above current levels). Also, 1.23m treasury shares provide a natural hedge if options move into the money.
Investment case remains fully intact. Accelerating growth, a resilient underlying margin and a strong balance sheet contrast with a valuation of 6.5x EV/EBITDA FY26e. We confirm BUY with an unchanged € 23.50 PT (DCF).
You can download the research here: westwing-group-se-2026-08-07-previewreview-en-69758
For additional information visit our website: https://www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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