Westwing Group SE (XTER:WEW) Q1 2025 Earnings Call Highlights: A Turn Towards Profitability ...

GuruFocus News

Fri, May 9, 2025, 12:04 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Westwing Group SE (XTER:WEW) improved its adjusted EBITDA borderline by 3 percent points to 8%, delivering 9 cardinal successful Q1 2025.

• The Western Collection, a sustainable backstage statement merchandise brand, grew its stock of wide GMV by 11 percent points to 62% successful Q1 2025.

• The institution successfully launched operations successful Sweden and continued its store enlargement with a caller store successful Paris.

• Westwing Group SE (XTER:WEW) reported a affirmative nett effect of 2.5 cardinal successful Q1 2025, indicating a crook towards existent profitability.

• The institution maintains a beardown equilibrium expanse with a nett currency presumption of 57 cardinal and nary debt, speech from lease obligations.

• Revenue declined by 1% twelvemonth implicit twelvemonth owed to shifts successful merchandise assortment and dampened user sentiment.

• Free currency travel was antagonistic astatine minus 9 million, chiefly owed to a seasonal summation successful inventory.

• The planetary conception saw a gross diminution of 4% twelvemonth implicit year, impacted by changes successful the merchandise assortment.

• Net inventories accrued by 19 cardinal twelvemonth implicit year, driven by timing effects and caller merchandise introductions.

• The institution anticipates accrued ramp-up costs for enlargement arsenic caller stores and countries are launched passim the year.

• Warning! GuruFocus has detected 2 Warning Signs with XTER:WEW.

Q: Is Westwing much cautious astir the wide user environment, and does this impact planetary enlargement oregon carnal store plans? A: Andreas, CEO, explained that portion determination mightiness beryllium flimsy improvements successful user sentiment successful immoderate countries, it is not a crippled changer. The anticipation for a amended 2nd fractional of 2025 is not linked to user sentiment but alternatively owed to the baseline effect from changes successful merchandise assortment and enlargement into caller countries and stores. These factors volition thrust amended show successful the 2nd fractional and person nary interaction connected enlargement plans.

Q: What are the drivers down the 28% summation successful mean bid value? A: Andreas, CEO, attributed the summation to a displacement towards the Westwing Collection, which typically has higher purchasing prices and a much premium merchandise assortment. This displacement has led to fewer, but much profitable, orders arsenic the institution focuses connected profitable customers.

Q: With the Westwing Collection stock exceeding 60%, is determination a program to update the midterm people of implicit 50%? A: Andreas, CEO, stated that portion they bash not expect the Westwing Collection stock to driblet beneath 50%, they are not issuing a caller people astatine this time. The absorption remains connected increasing some the Westwing Collection and third-party plan brands, which are much profitable.