NuWays AG Reiterates BUY Rating for Westwing Group SE Amid Solid Q2 Results

NuWays AG has updated its rating for Westwing Group SE, maintaining a BUY recommendation with a revised target price of EUR 17.50. This follows the release of Westwing's solid Q2 2024 results, which showcased a year-on-year GMV growth of 5%, reaching EUR 114 million. Sales for the quarter increased by 4.1% to EUR 106 million, driven by a surge in active customers and basket size.

Despite the positive sales figures, the adjusted EBITDA fell short of expectations at EUR 3.9 million. This was attributed to higher-than-anticipated investments in brand awareness. However, the company's marketing investments are viewed positively for long-term growth.

Westwing's contribution margin rose to 30.6% due to an increased share of private label products and reduced fulfillment expenses. Confirming its FY24 guidance, the company expects sales growth of 3% to 4% year-on-year, with an adjusted EBITDA outlook of EUR 14 million to EUR 24 million.