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

Entering UK, unlocking significant growth potential

Westwing announced its anticipated entry into the United Kingdom, its 23rd

European market and the last major strategic white spot on the company's

map. The launch is comprehensive from day one, covering the full Westwing

Collection alongside a curated mix of international and local UK partner

brands including Kartell, Georg Jensen, Le Creuset, Louis Poulsen and

Trudon. Westwing is also bringing its full service suite to the UK from the

outset: the Westwing Design Service, the B2B offering and the Delivery &

Assembly Service. The move is a direct execution of Phase 3 of Westwing's

three-step value-creation plan: Scaling with Operating Leverage.

The UK entry is the direct confirmation of what we flagged as imminent in

our latest update two weeks ago, happening faster than anticipated. The

strategic rationale is compelling. We estimate the UK Home & Living market

at around EUR 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

signals conviction rather than a test-and-learn approach, which bodes well

for early customer economics.

The UK entry is one of the single most significant country launches 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 EUR 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 EUR 25m of net cash flow in FY25 and

a net cash position of EUR 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 EUR 23.50 PT based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=bbbd4542d7a9966f78872a86188fcda8

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.

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2281894 26.02.2026 CET/CEST

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