Westwing Group SE: Strong Q3 Performance and Positive Outlook

Westwing Group SE recently announced robust Q3 results that exceeded expectations, prompting analysts at NuWays AG to upgrade their recommendation to "Buy". The company's geographic expansion contributed to topline growth, despite a 9% decline in active customers and a 14% drop in total orders. However, the average basket size increased by 22% year-on-year, leading to a 5.5% rise in Gross Merchandise Volume (GMV) to €115 million. Sales saw a 3% year-on-year growth, reaching €99 million.

Westwing also reported a new high in its Westwing Collection's share of GMV, reflecting a 20% growth in own products. This shift bolstered the company's gross margin to 52.7%. EBITDA rose 74% year-on-year to €6.1 million, driven by increased top-line growth and gross margin expansion. The positive Free Cash Flow (FCF) of €10 million is attributed to effective working capital management. The company remains on track to meet or exceed its full-year guidance.