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

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Original-Research: Westwing Group SE - from NuWays AG

28.05.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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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

from: 28.05.2025

Target price: EUR 18.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Conference feedback: Poised for profitable growth

Strong brand and superior positioning. WEW occupies a strategic niche

between low-margin mass market and luxury design brands, offering a curated

mix of own premium products (62% of GMV) and select third-party design brand

items (38%). This blend positions it as a one-of-a-kind destination for

stylish living in Europe. Perceived as a design brand rather than just a

retailer, WEW engages customers through strong storytelling and boasts 13m

social media followers, making it the World's largest inspirational account

in the home & living segment.

Return to growth not dependent on consumer sentiment. WEW's FY'25e sales

growth (guidance: -4% to % yoy) is expected to remain muted (eNuW: -1%

yoy) as planned, driven by a shift to highermargin Westwing Collection

products and the phase-out of lower-margin items. This mix is visible in a

21% yoy GMV growth for the Westwing Collection in FY'24 (Q1'25: 15% yoy),

whereas third-party GMV declined by 12% yoy (Q1: -26% yoy). Afterwards,

FY'26e group sales should rise again by 6% you, only by assuming 10% growth

in the Collection and flat third-party GMV for FY'26e. Additionally,

expansion into new countries (DK, SWE, LUX completed, c. 5-10 more this

year) could add roughly EUR 30m in FY'26e sales, implying another 7% yoy sales

growth. Combined, both drivers imply a 12-13% yoy sales expansion in FY'26e

(eNuW: 10% you, due to conservative assumptions), excluding any rebound in

consumer sentiment. In our view, the direction is clear, while uncertainty

only prevails around the magnitude of the effects described above.

Capital allocation constraints. Despite a strong EUR 57m net cash position

(36% of market cap) and being cash generative again, WEW's capital

allocation options are limited: (1) no dividends due to negative retained

earnings (FY'24: EUR -353m), (2) share buybacks restricted by current 10%

treasury share cap, (3) low CAPEX needs, (4) no debt to repay. This leaves

(5) M&A as the main option, but suitable targets are scarce given WEW's

premium positioning.

With growth mainly driven by internal levers and margin improvements shown

already, WEW's valuation of 3.3x FY'25e EV/EBITDA (2.1x FY'26e) appears

unjustified for a cash-generative e-commerce business. We reiterate our BUY

rating, confirm WEW in our NuWays AlphaList and maintain our DCFbased PT of

EUR 18.00.

You can download the research here: http://www.more-ir.de/d/32738.pdf

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 Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2146570 28.05.2025 CET/CEST

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