Westwing Group SE is anticipating improved margins in its Q3 results, even as gross merchandise value (GMV) is projected to fall slightly. Following a reassessment of product offerings initiated in Q2 2024, the company aims to achieve higher order values despite a reduction in order frequency. Q3 GMV is forecast at €107 million, representing a 2% year-on-year decline, while sales are expected to remain stable at €96 million.
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The Westwing Collection, the company's own product range, is set to account for 66% of GMV, supporting gross margin growth due to its higher profitability compared to third-party products. This shift is expected to lift the gross margin to 51.5%. Efficiency improvements in fulfilment and reduced overhead costs are predicted to contribute to significant EBITDA growth, targeting €4.9 million, equivalent to a 5.1% margin.
Westwing's guidance for 2025 remains unchanged, with projected sales of €440 million and adjusted EBITDA of €32 million. The ongoing strategic transformation, emphasising higher-margin proprietary products and operational efficiency, reflects a positive outlook for the company. Analysts maintain a "Buy" recommendation, with a target price of €20, signalling confidence in the firm's ability to enhance profitability while maintaining stable sales volumes amid a competitive market.
Source: www.webdisclosure.com
