^Original-Research: Westwing Group SE - from NuWays AG09.05.2025 / 09:00 CET/CESTDissemination of a Research, transmitted by EQS News - a service of EQSGroup.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: 09.05.2025 Target price: EUR 18.00 Target price on sight of: 12 months Last rating change: Analyst: Henry WendischQ1 according to plan: margins up, top line to followFlat top line as anticipated due to strategic assortment change. GMV wentdown 5% yoy to EUR 119m and sales decreased by 1% yoy to EUR 108m (eNuW: 109m),mainly due to WEW's strategy shift towards a more premium productassortment. Here, WEW phases out lower margin items and thus also a certainpart of their customer group in exchange for a more premium productoffering, which becomes visible in (1) an 11pp yoy higher private labelshare of 62%, (2) a decline in active customers by 6% yoy, (3) a subsequentlower number of orders (-25% yoy) but also (4) in an expanding averagebasket size (+28% yoy). This strategy shift started in H2'24 and thesubsequent effects seen above should therefore bottom out in H2'25e.Moreover, this shift was more pronounced in WEW's International segment(sales: -3.5% yoy), whereas the DACH segment showed sales growth of 1% yoy,in line with market growth (Home & Living DACH: +2% yoy).Margins up notably. Adj. EBITDA rose by 44% yoy to EUR 9.1m, a 2.7pp yoyhigher margin of 8.5%, thanks to interaction of several effects: (1) thehigher private label share drove up gross margin by 0.2pp yoy to 51.5%, astronger margin increase was counteracted by higher container costs, (2)efficiency gains in fulfillment visible in a 0.9pp yoy lower fulfillmentratio, (3) the phase out of last year's brand awareness and subsequent lowermarketing costs led to a 0.9pp yoy lower marketing ratio and (4) loweroverhead costs with G&A expense ratio down 1.4pp yoy.Looking ahead, the product assortment change is seen to show similartop-line effects in Q2 and partly still in Q3, thus making FY'25e atransitional year. However, in FY'26e sales momentum is seen to pick upagain (eNuW: +10% yoy) driven by more active customers due to countryexpansions (LUX, DK and SWE completed, 7 more to come) coupled with higheraverage basket sizes thanks to the assortment change. Naturally, this shouldcome with positive operating leverage and efficiency gains, which shoulddrive margins and cash generation in FY'26e accordingly.Against this backdrop, WEW's shares seem mispriced, in our view, trading at17% FCFY'25e (28% '26e). The anticipated return to growth coupled withfurther margin expansions in FY'26e could trigger a rerating soon.Therefore, we confirm our BUY recommendation with an unchanged PT of EUR18.00, based on DCF.You can download the research here: http://www.more-ir.de/d/32528.pdfFor additional information visit our website:https://www.nuways-ag.com/research-feedContact 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---------------------------------------------------------------------------2133678 09.05.2025 CET/CEST°