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

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

Q1 confirms the attractive investment case Westwing delivered its strongest quarterly growth since 2022, with GMV up 13% yoy to € 135m and revenue up 11% to € 120m. Three forces drove this: a successful January sales event, broad-based momentum across ten new countries launched in 2025, and continued outperformance from the Westwing Collection (WWC), whose GMV grew 14% to € 84m and now accounts for 63% of total GMV (+1pp yoy). International sales grew 22% yoy to € 57m (47% of group sales), while DACH growth stood at 3% (€ 63m). Profitability remained strong despite growth investments. Adj. EBITDA came in at € 9.6m, corresponding to an 8.0% margin, 0.4pp lower than previous year. This is entirely explained by intended investments into growth: elevated marketing expenses related to the recent UK market, physical store buildouts and the ramp-up of overhead in recently entered geographies. The contribution margin actually improved 1.9pp yoy to 34.1%, thanks to fulfilment efficiencies (warehouse efficiencies, partly offset by higher freight costs) and the increased Westwing Collection share, which naturally carries higher margins. Confirmed FY26 guidance already reflects current noise. Management reaffirmed its FY26 guidance of 5-10% yoy revenue growth (eNuW: 6%) and adj. EBITDA of € 36-48m (€ 42m). The range is intentionally wide, reflecting two offsetting dynamics: on the positive side, continued scaling across last year's ten new country launches and early traction from the recently entered UK; on the cautious side, softening consumer sentiment in Germany amid rising energy prices and elevated savings rates, which became visible in March. On the EBITDA line, the guidance factors in headwinds from lower order volumes in core markets (to materialize from Q2, eNuW), increasing freight costs, and the marketing investments for the UK. With € 84m of net cash at quarter-end (roughly 31% of market cap) and continued cash generation, capital allocation is an increasingly important part of the Westwing story. The company is actively returning cash to shareholders through its buyback program, having deployed € 4.2m of the authorized € 8m, while simultaneously reducing its outstanding stock option overhang; recently reduced by 0.54m shares, 2.9m now remaining. Investment case remains attractive. Sustainable growth alongside a good and increasing profitability combined with a strong balance sheet (€ 84m of net cash) contrasts with what we view as a subdued valuation of a mere 6.3x EV/EBITDA FY26e should be highly attractive. Following the successful operational turnaround, the group has entered the third phase of its transformation strategy “Scaling with Operating Leverage”. We confirm our BUY rating with an unchanged € 23.50 PT based on DCF and keep the stock in our Alpha List. You can download the research here: westwing-group-se-2026-05-08-previewreview-en-959c6 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 ++++++++++ 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. ++++++++++