Westwing Group SE, has reported strong profitability gains in the first quarter of 2025, despite a slight decline in revenue. The company achieved an adjusted EBITDA margin of 8%, a three-percentage-point increase compared to the same period in 2024.
Revenue in Q1 2025 stood at EUR 107 million, down 1% year-over-year, primarily due to a strategic shift toward a more global and premium product assortment and continued consumer caution. Gross Merchandise Volume (GMV) also declined by 5%, reflecting the impact of this transition.
Adjusted EBITDA rose to EUR 9 million from EUR 6 million in Q1 2024. The 2.7 percentage point increase in adjusted EBITDA margin was attributed to the successful execution of the second phase of Westwing's three-step value creation plan.
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.'
A key driver of improved profitability was the growing contribution of the proprietary Westwing Collection, which reached a record 62% of GMV, up 11 percentage points year-over-year.
While the company's free cash flow was negative at EUR -9 million in line with seasonal trends, and net working capital remained negative at EUR -2 million, Westwing maintained a solid net cash position of EUR 57 million at the end of March 2025.
Strategic milestones in Q1 included the opening of a new store in Leipzig and the launch of a store-in-store at Printemps in Paris. The company also expanded into Luxembourg and Denmark in Q1, followed by Sweden in April, strengthening its European footprint.
Westwing reaffirmed its full-year 2025 guidance, forecasting revenues between EUR 425 million and EUR 455 million, reflecting a possible range of -4% to +2% year-over-year. Despite anticipating continued topline headwinds, particularly in the first half, the company expects significant improvement in profitability, targeting adjusted EBITDA between EUR 25 million and EUR 35 million and a margin of 6% to 8%.
Westwing's Q1 2025 earnings webcast is scheduled for 10:00 AM CEST on 8 May 2025 and will be available via the company's Investor Relations website. The Annual General Meeting is set for 17 June 2025.
More information:
Westwing
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www.ir.westwing.com