Westwing Group SE Shows Resilience in Challenging Market

Westwing Group SE has reported strong Q3 results, driven by a strategic product and cost mix improvement. Sales rose by 3% year-on-year to €96 million, beating estimates. This growth was fueled by a 1% increase in active customers and a 16% rise in basket size, despite a 13% drop in order volume.

Notably, the DACH region experienced a 4% growth, showcasing an impressive market share gain as the overall German Home & Living market faced a decline. International sales, rising by 2%, were temporarily hindered by changes in product assortment.

The company's adjusted EBITDA surged by 46% to €4 million, aided by a 2.7 percentage point decrease in fulfillment costs. Marketing investments rose by 20%, particularly in DACH, supporting the upcoming crucial Q4 period.

Westwing's ability to grow amid market contractions, alongside a robust balance sheet, underpins its potential for further expansion. NuWays AG maintains its "Buy" recommendation with a target price of €17.50.