EQS-News: Westwing delivers 2024 results at the upper-end of guidance and expects to significantly improve profitability with an adjusted EBITDA margin of 6 to 8% in 2025

Westwing delivers 2024 results at the upper-end of guidance and expects to significantly improve profitability with an adjusted EBITDA margin of 6 to 8% in 2025

• Full-year 2024 revenue increased by 4% year-over-year to EUR 444 million despite a challenging market environment and the switch to a mostly global and more premium product assortment. This result lies at the upper-end of the guidance.
• Westwing delivered EUR 24 million adjusted EBITDA in full year 2024, also at the upper-end of the guidance.
• The Company achieved a positive free cash flow of EUR 9 million in full year 2024 and maintained a strong year-end net cash balance of EUR 69 million after share buybacks and one-off costs for restructuring.
• The high-margin Westwing Collection business grew by 8 percentage points year-over-year to a new all-time high of 55% of GMV for full year 2024.
• Management’s focus for 2025 is to initiate the third phase of Westwing’s 3-step value creation plan, with share gains in existing geographies and new country openings as main levers to scale with operating leverage.
• Full-year 2025 guidance: Revenue of EUR 425 to EUR 455 million (-4% to +2% year-over-year growth) and adjusted EBITDA of EUR 25 to 35 million (+6% to +8% of revenue).

Munich, 27 March 2025 // Westwing Group SE (“Westwing” or “the Company”), Europe‘s #1 in Beautiful Living e-commerce, announces its audited results for the financial year 2024 as well as its results for the fourth quarter of 2024.

Westwing ended 2024 with a solid Q4 and delivered on all financial commitments. In addition, the Company achieved all operational targets for 2024 in the second phase of its 3-step plan to unlock Westwing’s full value potential.

2024 Financial Performance

Revenue in the fourth quarter of 2024 rose by 2% year-over-year to EUR 134 million (Q4 2023: EUR 131 million). As expected, the strategic switch to a mostly global and more premium product assortment continued to dampen topline growth in the final quarter of the year to a greater extent than in previous quarters. 

Full-year 2024 revenue grew by 4% to EUR 444 million, reaching the upper-end of the guidance (FY 2024 revenue guidance: EUR 415 million to EUR 445 million). 

In terms of profitability, Westwing achieved a positive adjusted EBITDA of EUR 10 million in the fourth quarter of 2024 and an adjusted EBITDA of EUR 24 million for full year 2024, meeting the upper-end of the guidance (FY 2024 adjusted EBITDA guidance: EUR 14 million to EUR 24 million). Adjusted EBITDA margin was 5% for full year 2024 (2023: 4%). This was achieved through margin improvements and cost savings, while investing in brand awareness at the same time.

Westwing generated a positive free cash flow in the fourth quarter of 2024, resulting in a full-year free cash flow of EUR 9 million. The Company maintained a strong year-end net cash position of EUR 69 million after having spent EUR 11 million on share buybacks and EUR 8 million on one-off restructuring costs.

2024 Progress on Strategy Execution

Westwing’s focus in 2024 was to execute the second phase of its 3-step plan to unlock Westwing’s full value potential. Achievements included:

• The successful restructuring of its operations in Italy, Spain, Central & Eastern Europe and the headquarters, including several office and warehouse closures
• The introduction of a mostly global and more premium product assortment, with active removal of parts of the assortment associated with the aforementioned restructuring
• The migration of all country sites and apps to a mainly Software-as-a-Service (SaaS) based e-commerce technology platform
• Significant improvements in terms of brand awareness and premium positioning
• An increase in Westwing Collection share to a new full-year all-time high of 55% of GMV in 2024 (FY 2023: 47%) 

As expected, the change in product assortment dampened topline development in 2024, as less premium and lower margin products were actively phased out.

Westwing reached a major milestone in sustainability with the publication of its first Sustainability Statement under the Corporate Sustainability Reporting Directive (CSRD). The Company also advanced its operational sustainability efforts, including improvements in responsible sourcing and sustainable packaging. Further details on sustainability initiatives and progress will be published in the 2024 Sustainability Report on 3 April 2025.

2025 Planned Strategy Execution

While the aforementioned topline dampening from the change in product assortment will be felt throughout 2025, especially in the first half of the year, Westwing is now entering the third phase of its 3-step value creation plan: ‘Scaling with operating leverage’. Westwing’s focus for 2025 is the following:

• Continued market share gains in existing markets are mainly achieved through improvements in product assortment (see below) and marketing efficiency. On top, Westwing plans to open a mid-single-digit number of offline stores in 2025, based on the promising development of its existing Hamburg and Stuttgart stores.
• Westwing will enter 5 to 10 new countries in 2025, following the very successful launch of Portugal last year. The first two countries, Luxembourg and Denmark, were already launched in Q1 2025. Serving the premium segment in more countries with Westwing’s unique product assortment will provide for very attractive scale effects over the next few years.
• In terms of product assortment, the key improvements lie in the further development of the Westwing Collection and the continued onboarding of third-party design brands. 

While the complexity reduction of 2024 and continued cost discipline will lead to a significantly more profitable 2025, topline will only return to proper growth in 2026. Overall, the third phase of Westwing’s 3-step value creation plan provides for a clear roadmap to establish Westwing as Europe’s leading premium destination for Home & Living, targeting a high single to double-digit growth rate and continued improvements in profitability for 2026 and beyond.

CEO Statement

"2024 was a pivotal year for Westwing, as we transformed our business into a scalable platform and a clearly premium destination while improving profitability. As we move into the third phase of our 3-step value creation plan—scaling with operating leverage—we are excited to serve customers in existing and in new markets with an ever-improved product assortment, to enhance our premium brand positioning, and to further improve profitability. With a clear roadmap ahead, we are well-positioned to unlock Westwing’s full potential and deliver long-term value for our customers and shareholders." says Dr Andreas Hoerning, CEO of Westwing.

Financial Outlook 2025

Westwing currently does not expect a rebound of consumer demand in 2025, and expects, thus again, a challenging market environment with high uncertainty. In addition, management expects ongoing topline losses in 2025 from the introduction of a mostly-global and more premium product assortment, especially in the first half of the year. Therefore, for the full year 2025, Westwing forecasts revenue between EUR 425 million and EUR 455 million with a year-over-year growth rate of -4% to +2%. While topline outlook remains dampened, the transformation of 2024 allows for significant profitability improvement in 2025. Westwing expects an adjusted EBITDA between EUR 25 million and EUR 35 million at an adjusted EBITDA margin in the range of +6% to +8%.

Webcast and Conference Call

Westwing's FY 2024 earnings call will be broadcasted via live stream on 27 March 2025, starting at 10:00 AM (CET) on the Company's Investor Relations website https://ir.westwing.com. The recording of the live stream will be available on the same site.

Westwing's Annual General Meeting is scheduled for 17 June 2025. 

For further information, please visit Westwing's Investor Relations website at https://ir.westwing.com.

About Westwing

Westwing, Europe’s #1 in Beautiful Living e-commerce, is present in 14 European countries and achieved a GMV (Gross Merchandise Volume) of EUR 497 million in 2024. As Europe’s premium one-stop destination for Design Lovers, it offers a unique brand experience with a carefully curated assortment of the Westwing Collection and 3rd party design brands. The integrated platform combines Shop, Daily Specials, Stores, the B2B Service (Westwing Business) and the Westwing Design Service. Westwing’s team works together on its shared purpose to “Excite people to create homes that unlock the full beauty of life”. Founded in 2011, Westwing is headquartered in Munich and went public on the Frankfurt Stock Exchange in October 2018.

Disclaimer

Certain statements in this communication may constitute forward-looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to a number of factors. These include, without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous materials/production conditions with regard to private labels, insufficient innovation capabilities, inadequate data security, insufficient market knowledge, strike risks and changes in competition levels.

Contact
Westwing Group SE
Investor Relations
E-Mail: ir@westwing.de