Westwing achieved 8% adjusted EBITDA margin in Q1 2025, up 3 percentage points year-over-year

• In Q1 2025, revenue declined by 1% year-over-year to EUR 107 million due to shifts in product assortment.
• Adjusted EBITDA increased to EUR 9 million at an adjusted EBITDA margin of 8% (+3pp year-over-year).
• Seasonally, free cash flow amounted to EUR -9 million, net working capital remained negative at EUR -2 million, net cash position stood at EUR 57 million at the end of March 2025.

Munich, 8 May 2025 // Westwing Group SE (“Westwing” or “the Company”), Europe‘s #1 in Beautiful Living e-commerce and premium one-stop destination for design lovers, announces its results for the first quarter of 2025.

In Q1 2025, revenue amounted to EUR 107 million, representing a modest decline of 1% compared to the same period in the previous year. Gross Merchandise Volume (GMV) declined by 5% year-over-year. This development was primarily driven by the negative topline impact of the transition to a mostly global and more premium product assortment, alongside subdued consumer sentiment.

With regards to profitability, Westwing achieved EUR 9 million of adjusted EBITDA in the first quarter of 2025 (Q1 2024: EUR 6 million), corresponding to an adjusted EBITDA margin of 8.5%. This strong improvement in adjusted EBITDA profitability by EUR 3 million (+2.7pp) was driven by the successful implementation of the second phase of Westwing’s 3-step value creation plan.  

The Westwing Collection reached an all-time high of 62% share of overall GMV in the first quarter of 2025, an increase of 11 percentage points compared to previous year’s Q1. 

In line with seasonal expectations, Westwing generated a negative free cash flow in the first quarter of 2025 of EUR -9 million with net working capital remaining negative at EUR -2 million. The net cash position was at EUR 57 million (end of Q1). 

Since the beginning of the year, Westwing made meaningful progress towards its strategic objectives for 2025. In March, the Company opened a new store in Leipzig, Germany, followed by the launch of a store-in-store at Printemps in Paris, France, in April. Additionally, Westwing expanded its geographic presence to Luxembourg and Denmark in the first quarter, followed by Sweden in April. The Company is progressing well towards its strategic and financial objectives for 2025 which lay the foundation for Westwing’s mid-term goals.

CEO Statement

Dr Andreas Hoerning, CEO of Westwing, commented: "The first quarter marks a strong start into the year, with significantly improved profitability as a result of the changes we implemented in 2024. As we are continuing with the third phase of our 3-step value creation plan, we are fully on track to unlock Westwing’s full potential."

Financial Outlook 2025

Westwing confirms its outlook for FY 2025, as published in March 2025. Westwing currently does not expect a rebound of consumer demand in 2025, and expects, thus again, a challenging market environment with high uncertainty. In addition, management expects ongoing topline losses in 2025 from the introduction of a mostly global and more premium product assortment, especially in the first half of the year. Therefore, for the full year 2025, Westwing forecasts revenue between EUR 425 million and EUR 455 million with a year-over-year growth rate of -4% to +2%. While topline outlook remains dampened, the transformation of 2024 allows for significant profitability improvement in 2025. Westwing expects an adjusted EBITDA between EUR 25 million and EUR 35 million at an adjusted EBITDA margin in the range of +6% to +8%.

Webcast and Conference Call

Westwing's Q1 2025 earnings call will be broadcasted via live stream on 8 May 2025, starting at 10:00 AM (CEST) on the Company's Investor Relations website https://ir.westwing.com. The recording of the live stream will be available on the same site.

Westwing's Annual General Meeting is scheduled for 17 June 2025. 

For more information, please visit the Westwing Investor Relations website: https://ir.westwing.com
 

About Westwing

Westwing, Europe’s #1 in Beautiful Living e-commerce, is present in 15 European countries and achieved a GMV (Gross Merchandise Volume) of EUR 497 million in 2024. As Europe’s premium one-stop destination for Design Lovers, it offers a unique brand experience with a carefully curated assortment of the Westwing Collection and 3rd party design brands. The integrated platform combines Shop, Daily Specials, Stores, the B2B Service (Westwing Business) and the Westwing Design Service. Westwing’s team works together on its shared purpose to “Excite people to create homes that unlock the full beauty of life”. Founded in 2011, Westwing is headquartered in Munich and went public on the Frankfurt Stock Exchange in October 2018.

Disclaimer

Certain statements in this communication may constitute forward-looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to a number of factors. These include, without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous materials/production conditions with regard to private labels, insufficient innovation capabilities, inadequate data security, insufficient market knowledge, strike risks and changes in competition levels.

Contact
Westwing Group SE
Investor Relations
E-Mail: ir@westwing.de