Entering UK, unlocking significant growth potential

The UK entry is the direct confirmation of what we flagged as imminent in our latest update two weeks ago. The strategic rationale is compelling. We estimate the UK Home & Living market at around € 20bn, representing roughly 15% of Westwing’s existing addressable market, making this by far the largest single market addition in the company’s history. Structurally, the UK is also one of the most attractive e-commerce markets globally, with approximately 87% of internet users shopping online, a backdrop more favourable than most of the 22 markets Westwing already serves.

The expansion model remains asset-light and low-risk, with no fixed infrastructure commitments, marketing investment gated by return thresholds and a brand British consumers are likely already familiar with given Westwing’s position as the world’s largest inspirational home and living social media account. Launching with the full service stack from day one bodes well for early customer economics.

The UK entry is one of the single most significant country launch in Westwing’s history and a tangible validation of the Phase 3 thesis. Looking ahead, we see a clear path for Westwing to deliver double digit revenue growth in FY26e (eNuW: 10.3%), underpinned by the UK contribution, recent market entries and the continued premiumisation of the assortment. On profitability, the structural margin improvement story remains intact: adj. EBITDA of € 43m in FY25 was already well ahead of original expectations, with management targeting 10%+ adj. EBITDA margins in the medium term. Cash generation adds further conviction, with € 25m of net cash flow in FY25 and a net cash position of € 94m at year end providing a significant buffer and optionality.

At a mere 3.7x FY26e EV/adj. EBITDA the shares remain undemanding for a business of this quality and trajectory. After all, Westwing makes for a textbook example of a successful turnaround. We confirm our BUY rating (also still part of our AlphaList) with an unchanged € 23.50 PT based on DCF.