Westwing Group SE Achieves Solid Performance Amid Challenging Consumer Sentiment

Westwing Group SE has been rated as a "BUY" by NuWays AG with a target price of EUR 17.00. This comes after a robust performance during the recent Black Week, positioning the company within the upper range of its sales guidance for Q4. Despite a muted consumer sentiment, management expects no revenue decline for FY'24.

The company's FY'24 sales guidance is set between €415-445 million, with a projected adjusted EBITDA of €14-24 million. The company's strategic changes, such as shifting its product assortment, are expected to impact short-term sales but are part of a longer plan to sustain growth.

Looking ahead to FY'25, Westwing aims to expand in Europe and open physical stores in major DACH cities. However, the transition in product assortment might slow early-year growth. The company expects a 5% growth in sales, with an increase in adjusted EBITDA to €22.5 million due to a favorable cost mix.