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

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Original-Research: Westwing Group SE - from NuWays AG

30.03.2026 / 09:00 CET/CEST

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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

Op. turnaround in full swing, entering third phase; BUY

FY25 recap. Westwing closed a transformational year with sales up 1% to EUR

449m as the group benefitted from a higher average basket size (+21% yoy to

EUR 235), compensating for slightly less customers (-3% yoy to 1.2m) and lower

avg. orders per active customers (-13% yoy to 1.8). Q4 was particularly

strong with 7% yoy growth driven by a strong Black Week sales event. While

the DACH region remained largely flat yoy, the group's international

expansion is bearing fruit with sales growing 15% in Q4 (5% in FY25),

already accounting for 45% of group sales. Further cost savings, efficient

marketing spending and a higher Westwing Collection share allowed for a

4.4pp higher adj. EBITDA margin at 9.8% (Q4 +8.1pp at 15.8%). With this, the

upper ends of the (raised) guidance were met.

FCF generation confirms the strong fundamentals. Free cash flow after lease

payments stood at EUR 23m (EUR 39m operating cash flow) raising the company's

cash position at the end of the year to EUR 91m. With this, Westwing can

easily finance its ongoing share buyback (from 02/26: up to EUR 8m) and

upcoming charges for outstanding stock option programs (up to EUR 10m impact).

FY26 guidance reflecting short-term noise as well as increasing European

traction. For FY26, management expects sales to grow by 5-10% yoy with ad.

EBITDA of EUR 36-48m. Growth expectations comprise positive implications from

last year's country launches as well as the recent UK market entry (i.e.

strong int. sales growth) but also increased cautiousness in Germany

(increased savings rates amid rising energy prices). On adj. EBITDA, the

guidance includes headwinds from lower order volumes, increasing freight

costs and increased marketing expenses for the UK entry. Mind you: The lower

ends imply no significant changes vs current momentum throughout the year.

Turnaround case remains in full swing. Since 2022, the current management

successfully turned Westwing into a profitable growth case, visible across

KPIs. Adj. EBITDA margin grew from -1% to almost 10% in FY25, thanks to

right-sized operational structures, reduced complexity, increased focus on

its premium assortment (Westwing Collection GMV share from 34% to 64%) and

structured entry into new European markets. With this, the company looks

well on track to deliver on its mid-term targets of continued high

single-digit (eNuW) annual sales growth and an adj. EBITDA margin greater

than 10%.

Valuation remains attractive in light of the healthy balance sheet and the

company having reached a pivotal point of sustainable profitable growth and

cash generation. Current market pricing of 4x EV/adj. EBITDA FY26e does not

adequately reflect that, in our view.

We confirm our BUY rating. Despite lowered adj. EBITDA estimates for the

short-term, the PT remains unchanged at EUR 23.50 as we lower the WACC to 9%

as we consider the operational turnaround as completed and the group has

entered the third phase of its transformation strategy "Scaling with

Operating Leverage".

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=64d4f72a6b3f388e477428c06d77f507

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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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2299842 30.03.2026 CET/CEST

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