^Original-Research: Westwing Group SE - from NuWays AG05.12.2024 / 09:00 CET/CESTDissemination of a Research, transmitted by EQS News - a service of EQSGroup AG.The issuer is solely responsible for the content of this research. Theresult of this research does not constitute investment advice or aninvitation to conclude certain stock exchange transactions.---------------------------------------------------------------------------Classification of NuWays AG to Westwing Group SE Company Name: Westwing Group SE ISIN: DE000A2N4H07 Reason for the research: Update Recommendation: BUY from: 05.12.2024 Target price: EUR 17.00 Target price on sight of: 12 months Last rating change: Analyst: Henry WendischSolid black week in the books, guidance well in reach; chg. estTopic: During last weeks black week, which is a main driver of Q4 revenues,WEW has performed in line with its own expectations, posing the upper halfof the sales guidance in reach. However, the still muted consumer sentimentdoes seem to turn positive in the near-term. In detail:After having spoken to the company, WEW is satisfied with its black weekperformance which was 'in line with expectations'. Therefore, we keep our Q4sales estimate (eNuW: EUR 125m sales; -5% yoy) unchanged. Mind you, thedecision of to change the product assortment in certain countries towards amore global one, is the key reason behind the expected revenue decline inQ4.Accordingly, the FY'24e sales guidance range of EUR 415-445m (-3% to +4% yoy;eNuW: EUR 435m, +1.5% yoy) should be reached in the upper half. This isfurther supported by management's statement, that a revenue decline inFY'24e is 'unlikely'. Due to the ongoing brand marketing campaign, we expectthe adj. EBITDA guidance of EUR 14-24m (3-5% margin) to be met at midpoint(eNuW: EUR 18m).Looking ahead, FY'25e will likely remain a year with muted consumersentiment. However, the company has shown to outperform the marketthroughout 9M'24, mainly driven by a growing user base and increasingaverage basket size. For FY'25e, we expect the trend of growth in users andaverage basket size to continue, but at lower rates. Moreover, WEW plans toexpand into other European countries and to open physical stores inimportant DACH cities (e.g. Munich, Berlin, Vienna), supporting sales assoon as FY'25e, however with a full-year effect in FY'26e. On the otherhand, the productassortment change should negatively affect sales growth from Q1-Q3'25e andthus dampen the effects described above. In sum, we expect a 5% top linegrowth in FY'25e, which would imply an adj. EBITDA of EUR 22.5m (+24% yoy)thanks to a beneficial cost mix and a rising private label share driving upgross margin.In sum, WEW's management used the time of a depressed consumer sentimentwisely and shaped WEW into a leaner and more scalable company, which bodeswell in case of a consumer rebound. Until then, WEW remains a profitable,net cash and FCF positive company, serving as a downside protection andproviding an attractive risk-return profile, in our view. Hence, wereiterate our BUY recommendation with new PT of EUR 17.00 (old: EUR 17.50),based on DCF.You can download the research here: http://www.more-ir.de/d/31491.pdfFor additional information visit our website: www.nuways-ag.com/researchContact for questions:NuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: research@nuways-ag.comLinkedIn: https://www.linkedin.com/company/nuwaysagAdresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschlussbestimmter Börsengeschäfte.Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim obenanalysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++---------------------------------------------------------------------------The EQS Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Archive at www.eqs-news.com---------------------------------------------------------------------------2044525 05.12.2024 CET/CEST°