^
Original-Research: Westwing Group SE - from NuWays AG

28.11.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation 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: 28.11.2025
Target price: EUR 22.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch

Following years of post-covid normalization, WEW is back on a self-induced
growth path, independent of the consumer sentiment. With this multi-pager we
dive deeper into this compelling investment case of one of our alpha ideas:

Rightsizing at the right time, in the right way. The post-COVID value
creation plan fundamentally reshaped the company's operating model.
Management swiftly adapted to a new demand environment while always keeping
a lean, scalable expansion across Europe in sight. The company rightsized
its cost base, restructured several markets, modernized IT, and centralized
logistics into a state-of-the-art hub, driving fulfillment efficiency gains
and cost control. These actions have created a more agile and efficient
organization, well positioned to capture future growth opportunities.

Westwing Collection - higher value, higher margins. As a result of the rise
in WWC share of GMV from 41% in FY Ž22 to 65% in FY Ž25e, AOV went up from EUR
154 in FY Ž22 to EUR 242 in FY Ž25e. Consequently, a higher average order
value (AOV) has driven structural gross margin gains (47.1% in FY Ž22 to
52.2% in FY Ž25e) and deeper brand loyalty. As the mix shifts further
towards WWC, we see continued upside to profitability, one of WestwingŽs key
long-term levers.

European expansion resumes; UK next? We anticipate rapid progress in
recently entered markets, with early signs already visible in the
International segment's +11% yoy sales growth in Q3 '25. As Westwing
continues to build scale across Europe, the next strategic leap should be
the UK, a high-potential market that could significantly expand its
addressable market reach and validate the brand's ability to replicate
success beyond the EU. We see this as a key catalyst for an accelerating
top-line and as further re-rating potential.

High cash-generation with recovering capital efficiency. WEW's business
model benefits from favorable working capital dynamics, allowing it to
operate with mostly negative WC and strong cash conversion. Currently,
around 10% of sales convert to FCF, a figure expected to rise toward up to
20% as margins continue to improve. In addition, capital efficiency should
recover from negative levels (eNuW: 13% ROIC FY Ž25 vs -7% in FY Ž24),
lifted by higher adj. EBITDA margins, and decreasing amortization of
intangibles, as the company leaves the legacy shop software change behind.

The combination of a highly attractive valuation (4.2x FY'26e EV/adj.
EBITDA), managementŽs clockwork delivery of the value creation plan,
imminent topline growth with operating leverage, a strong net cash position
(EUR 58m per Q3 Ž25) and upbeat cash generation, underpins our conviction in a
high-reward investment case and a compelling entry point into one of
EuropeŽs leading design brands. Therefore, we reiterate our BUY rating and
keep WEW in our AlphaList with an unchanged PT of EUR 22.00, based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=4be32c6167c480971076e2869fa47b72
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
View original content:
https://eqs-news.com/?origin_id=f3344e48-cc2c-11f0-be29-0694d9af22cf&lang=en

---------------------------------------------------------------------------

2237190 28.11.2025 CET/CEST

°