Westwing Group SE: Anticipating Q3 Margins Boost

Westwing Group SE is set to unveil its Q3 results, with expectations for a stabilization in GMV and sales, accompanied by margin improvements. A reassessment of product offerings initiated in Q2 2024 targets more significant order values despite a drop in order frequency. Consequently, Q3 GMV is projected at €107 million, a 2% decline year-on-year, with sales remaining stable at €96 million.

The Westwing Collection's dominance is poised to grow to 66% of GMV, enhancing gross margins due to its higher profitability compared to third-party products. This transition is predicted to yield a gross margin increase to 51.5%. Efficiency gains in fulfillment and reduced overheads are expected to drive significant EBITDA growth, targeting €4.9 million, a 5.1% margin.

Westwing's forecast aligns with 2025 guidance, projecting €440 million in sales and €32 million in adjusted EBITDA. The ongoing transformation reflects a positive outlook and reaffirms a "Buy" stance with a target price of €20.