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
from:	27.10.2025
Target price:	EUR 20.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Henry Wendisch & Antonio Perez

On November 6, Westwing will release its Q3 figures, for which we expect muted GMV and sales, butvisible margin improvements. In detail:

Progressive improvement in GMV and top-line. As the product reassortment implemented in Q2´24 reaches maturity, we expect a much less pronounced decline in LTM active customers (eNuW:1.23m; -4% yoy), and consequently a decline in orders (eNuW: 420k, -21% yoy). Thedisproportionate decline in orders should be a direct result of the product reassortment, which impliesa shift from more frequent, smaller ticket orders to less frequent, bigger ticket orders. Mind you, this ispartially offset by a higher average basket size (+23% yoy). Thus, we forecast Q3 GMV to land at €107m (-2% yoy), reflecting a lower decline vs H1. Accordingly, sales should arrive flat at € 96m. Regionally, DACH should still decline by 1% yoy to € 53m , as it should be more affected by thereassortment, whereas in International the same effect should be visible, albeit revenue fromgeographic expansions might already be visible, leading to a slight sales growth of 2% yoy to € 43m.

Westwing Collection´s share to reach new high. After WEW posted a record 65% GMV share ofown products in Q2, we expect it to reach 66% (+8pp yoy and +1pp qoq), which implies a 21% yoydecline in third party products GMV, and a +12% yoy growth in own products GMV. This shouldcome in handy, as the Westwing Collection products carry structurally higher gross margins than third party products. As a result, we forecast a gross margin of 51.5% (+1pp yoy), leading to gross profit of € 49m (+2% yoy) in Q3.

Strong EBITDA improvement ahead. The expected gross margin improvement should be aided bymore efficient fulfillment (eNuW: 18% fulfillment expense ratio; -0.9pp yoy), which should ultimatelydrive a +1.9pp yoy improvement in contribution margin to 33.5% in Q3. Moreover, a leaner overheadcost base (eNuW: G&A expense ratio -2.2pp yoy to 18.8%) thanks to the ongoing business modeltransformation and complexity reductions, which were strongly visible in H1, should drive
adj.EBITDA to € 4.9m (5.1% margin; +1.4pp yoy), implying a remarkable +40% yoy growth in Q3 (eNuW).

Guidance fully in reach. Based on our estimates for Q3 and Q4, we expect WEW to deliver FY’25results comfortably within the guidance (see bottom right). Sales are seen to arrive at € 440m (-1%yoy) and adjusted EBITDA at € 32m (7.2% margin, +1.8pp yoy).

In sum, we maintain our strong conviction on the investment carried by an imminent return to top-linegrowth with already visible margin expansions, coupled with a
very attractive valuation. Therefore,we reiterate our BUY rating and keep WEW as part of our AlphaList with an unchanged PT of €20.00, based on DCF.

You can download the research here: westwing-group-se-2025-10-27-previewreview-en-c6321
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
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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