Westwing Group SE announces preliminary and unaudited trading information for the fourth quarter and the full year 2023, is read by the MarketScreener. Based on preliminary unaudited results, Westwing delivered a second consecutive quarter of growth in the fourth quarter of 2023 with EUR 147 million in Gross Merchandise Value (GMV) (Q4 2022: EUR 142 million), representing an increase of +4% year-over-year. This growth is also based on a growing number of Active Customers, which increased for the second consecutive time quarter-over-quarter and confirms the appeal of the Westwing brand and its products.
Despite the challenging macroeconomic environment throughout 2023, Westwing managed to maintain previous year´s GMV level of EUR 481 million for FY 2023. Revenue development is expected to be very slightly below GMV development. Accordingly, revenue for FY 2023 is expected to be in the upper half of the guided range of EUR 390 million to 440 million.
In terms of profitability, Westwing expects a positive Adjusted EBITDA in the fourth quarter of 2023. This leads to the Company’s expectation to report an Adjusted EBITDA for FY 2023 in the upper half of its updated guidance (updated FY 2023 Adjusted EBITDA guidance: EUR +13 million to EUR +19 million). Westwing delivered on its promise to return to a positive Adjusted EBITDA for FY 2023 and its expectation to return to growth in the second half of 2023. In addition, Westwing achieved a positive Free Cash Flow in the fourth quarter of 2023, leading to a positive Free Cash Flow for FY 2023 and an increase in net cash year-over-year.
In accordance with the strategic priority of positioning the beautiful Westwing Collection at the core of the next growth phase, Westwing Collection reached a share of 47% of the Company’s GMV in FY 2023 (FY 2022: 41%). This represents a +6 percentage point increase compared to the previous year, based on strong improvements in each quarter of 2023. This supports the Company’s strategic progress of building up the Westwing Collection to a target of 50% share of GMV through further expansion of the assortment as well as higher visibility across all channels.
In terms of brand development, the year 2023, and in particular the fourth quarter of 2023, has been very successful. In the second half of 2023, Westwing launched its new brand awareness campaign “Live Beautiful”. This included a refreshed premium corporate identity, beautiful out-of-home advertising, and collaborations with celebrities. For instance, in the fourth quarter of 2023, Westwing cooperated very successfully with well-known footballer Lukas Podolski, actor Jaime Lorente, best known for his roles in “Money Heist” and “Élite”, and famous TikTok personality Lena Mantler. Through these partnerships, the Company generated more than 15 million social media impressions and was able to successfully address new customer segments.
Westwing will publish its Annual Report for FY 2023 including the outlook for FY 2024 on March 28, 2024.