(Image Source: www.westwing.com)
In the first quarter of 2024, Westwing Group SE, Europe’s #1 in Beautiful Living e-commerce, showcased robust growth and enhanced profitability despite market headwinds. Revenue surged by 6% year-over-year to EUR 109 million, demonstrating resilience in a declining market. Notably, the number of active customers saw a positive year-over-year growth of 2%, marking a significant milestone since the end of the pandemic.
Westwing’s adjusted EBITDA reached EUR 6 million, with an impressive adjusted EBITDA margin of 5.8%, reflecting a notable improvement compared to the previous year. This enhanced profitability was driven by the expansion of the high-margin Westwing Collection and optimization in fulfilment costs. The Westwing Collection accounted for an all-time high of 51% of the overall Group GMV, underscoring its growing importance in the company’s revenue mix.
Additionally, the contribution margin increased by 4 percentage points year-over-year to 31.8%, further bolstering Westwing’s financial performance. The company reported a free cash flow of EUR 4 million in Q1 2024, resulting in a robust net cash position of EUR 82 million by the end of March 2024.
Despite market challenges, Westwing remains committed to its strategic vision of becoming Europe’s leading premium one-stop destination in Home & Living. The company continues to invest in brand awareness and product innovation, exemplified by recent collaborations and design highlights showcased during Milan Design Week.
Dr. Andreas Hoerning, CEO of Westwing, emphasized the company’s resilience and strategic execution, stating, “Westwing’s continued strong performance compared to the market is the result of our clear strategy and excellent execution and underscores the strength of our commercial model.”
Looking ahead to 2024, Westwing maintains its outlook, albeit with caution due to the ongoing challenging market environment. The company expects revenue growth of -3% to +4% year-over-year, with an adjusted EBITDA margin of 3% to 5%, reflecting its prudent approach amidst market uncertainties.
