UK market entry around the corner

UK, a market with high potential. Based on various industry sources, we estimate the UK Home & Living market at approximately € 20bn, representing around 15% of total Home & Living spend across Westwing’s existing markets of € 150bn, excluding the UK. This constitutes a sizeable addressable opportunity relative to Westwing’s current scale. Beyond its large addressable market, the UK stands out for its exceptional online penetration. With e-commerce representing ~30% of total retail sales and ~87% of internet users shopping online, the country ranks among the top five e-commerce markets worldwide, offering a fertile backdrop for Westwing’s digital-first model.

Although the expansion into the UK will require a differentiated approach given product specifications, logistic complexity, and the country’s non-EU status, we view it as a compelling opportunity given the market’s size relative to other European countries. The looming UK entry will mark a significant step in Westwing’s long-term growth trajectory and could serve as a blueprint for future overseas expansion, in our view.

Shareholder friendly capital allocation. Last week, Westwing announced the decision to cancel existing 1.25m treasury shares. Further, management decided to launch an additional share buyback program with a target volume of up to € 8m (max. 700k shares) supported by the company’s strong net cash position (€ 89m) and ongoing operational improvements, particularly visible in free cash flow generation.

In sum, Westwing makes for a textbook example of a successful turnaround. Thanks to its strategic shift, the company is able to show profitable growth with strong cash generation against challenging end markets supporting the ongoing re-rating of the shares (+47% YTD). In spite this, valuation still remains attractive with shares trading at a mere 3.7x FY26e EV/adj. EBITDA.

We reiterate our BUY rating and keep WEW in our AlphaList with an unchanged € 23.50 PT based on DCF.