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

19.01.2026 / 09:00 CET/CEST

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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

Target price: EUR 23.5

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Blowout Q4 prelims as value creation plan bears fruit; PT UP

Westwing raised its FY25 guidance implying blowout Q4 figures particularly

on adj. EBITDA and cash generation as the value creation plan is

increasingly bearing fruit. In detail:

GMV in Q4 grew by 9% yoy to EUR 163m (eNuW old: EUR 158m) driven by a

particularly strong performance during the Black Week sales event and at

year-end; FY25 GMV grew by 2% yoy to EUR 507m. Accordingly, sales in the

fourth quarter increased by 6.7% yoy to EUR 143m with FY25 sales coming in at

EUR 449m (eNuW old: EUR 446m). In sum, this should largely be the result of

management's transformation efforts, incl. a stronger premium brand

positioning, adjusted product assortment and the ongoing European expansion

(9M international sales were up 1.5% yoy vs. slightly declining DACH sales).

Margins, the true star of the show. In Q4, the group's adj. EBITDA margin

stood at a whopping 15% (+7.3 pp yoy), clearly beating our old 9.6%

estimate. With this, adj. EBITDA jumped by 110% yoy to EUR 21.6m (eNuW old: EUR

13.5m). FY25 adj. EBITDA to now come in at EUR 43m (eNuW old: EUR 34.8m). The

reasons are simple (1) ongoing tight cost control, (2) a rising Westwing

Collection share, (3) operating leverage and (4) fast order processing.

FY25 guidance raised. Following the particularly strong Q4, management now

expects around EUR 449m sales (old: EUR 425-455m) and adj. EBITDA of EUR 42-45m

(old: EUR 25-35m).

Superb cash generation. In FY25, WEW generated EUR 25m of cash, notably above

our old estimate of EUR 10m thanks to the better than anticipated operational

performance, fast order processing (i.e. better inventory turn) and high

cash conversion (lower receivables, higher payables). With this, net cash at

the end of FY25 increased to EUR 94m (eNuW old: EUR 79m).

FY26e to remain on a growth track // European expansion ongoing. WEW should

be able to continue growing in FY26, largely carried by the International

segment. Mind you, in FY25 WEW entered ten additional European markets with

early signs of success already visible with Q3 figures. As WEW continues to

build scale across Europe, the next strategic leap should be the UK, a

high-potential market that could significantly expand its addressable market

reach and validate the brand's ability to replicate success beyond the EU.

Valuation remains undemanding. Shares are trading at a mere 4.2x EV/adj.

EBITDA FY26e (~37% of the market cap is covered by net cash) while

management' value creation plan is being delivered like clockwork. Mind you,

WEW is back on a growth path with gradually improving margins as operating

leverage is kicking in and strong cash generation. This clearly underpins

our view of WEW being a high-reward investment case at a still attractive

entry point.

We reiterate our BUY rating and keep WEW in our AlphaList with a slightly

increased EUR 23.50 PT (old: EUR 22.00), based on DCF. - change of analyst -

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