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

um 10:06 Uhr


Original-Research: Westwing Group AG - von NuWays AG

Einstufung von NuWays AG zu Westwing Group AG

Unternehmen: Westwing Group AG
ISIN: DE000A2N4H07

Anlass der Studie: Q3 Review
Empfehlung: BUY
seit: 10.11.2023
Kursziel: EUR 19,00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Mark-Hendrik Schüssler

Top and bottom line recovery in full swing, est. & PT chg.

Westwing released strong Q3 results and lifted its FY 2023 adj. EBITDA
guidance. Q3 sales increased by 5.2% yoy to EUR 92.9m (eNuW: EUR 91.3m),
indicating a sequential improvement versus Q2 (-1.2% yoy). Sales in DACH
returned to growth (3.6% yoy vs. -5.5% yoy in Q2), while International
improved sequentially to 6.5% yoy (vs. 5.6% yoy in Q2). Following several
quarters of decline, the number of active customers grew by 0.8% qoq to
1.26m (vs. -1% qoq in Q2). Westwing was able to boost share of wallet by
increasing GMV per customer by 6% yoy to EUR 377, demonstrating Westwing's
loyal customer base and fruitful efforts to improve customer experience and
product offering.

Adj. EBITDA was better than expected and came in at EUR 2.4m (eNuW: EUR -0.4m)
versus EUR -4.4m in Q3 22, delivering the fourth profitable quarter in a row
and reflecting that efficiency measures are bearing fruit and the company
successfully increases its private label share (48% of GMV in Q3 vs. 44% in
Q3 2022). Consequently, adj. EBITDA margin rose by 7.6pp yoy to 2.6% and
FCF strongly improved to EUR 3m in Q3 (vs. EUR -1m in Q3 22) mainly driven by
more efficient working capital.

Westwing confirmed its FY 2023 revenue guidance, still expecting the upper
half of its sales target, ranging from -9% to 2% yoy or EUR 390 to 440m (eNuW
new: EUR 438m, eCons new: EUR 432.7m). However, the company raised its FY 2023
adj. EBITDA guidance (previously EUR 4 - 13m) and now expects to achieve an
adj. EBITDA of EUR 13 - 19m for the full year (eNuW new: EUR 20m, eCons new: EUR
14.2m) with a margin of 3 - 4.6% (eNuW new: 4.5%, eCons new: 3.3%). The
lifted adj. EBITDA guidance is based on stronger than expected preliminary
October results and hence a better outlook for Q4 2023. FCF is expected to
turn significantly positive in FY 2023 (eNuW: EUR ~20m) driven by improved
profitability and lower inventory levels.

Overall, Westwing's better-than-expected Q3 results indicate that the
company seems to have passed the trough. During the earnings call,
management reaffirmed its view that the company is on track to continue top
and bottom line yoy growth in Q4 2023 thanks to promising indications from
OneWestwing and ongoing efficiency measures. Given that Q4 is typically
Westwing's strongest quarter, FY 2023 adj. EBITDA guidance looks
conservative, in our view.

BUY, changed PT EUR 19.00 (old: EUR 18.00), based on DCF.

Die vollständige Analyse können Sie hier downloaden:
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden

Kontakt für Rückfragen
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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-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.


Westwing Group SE