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

30.03.2026 / 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
Target price: EUR 23.5
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

Op. turnaround in full swing, entering third phase; BUY

FY25 recap. Westwing closed a transformational year with sales up 1% to EUR
449m as the group benefitted from a higher average basket size (+21% yoy to
EUR 235), compensating for slightly less customers (-3% yoy to 1.2m) and lower
avg. orders per active customers (-13% yoy to 1.8). Q4 was particularly
strong with 7% yoy growth driven by a strong Black Week sales event. While
the DACH region remained largely flat yoy, the group's international
expansion is bearing fruit with sales growing 15% in Q4 (5% in FY25),
already accounting for 45% of group sales. Further cost savings, efficient
marketing spending and a higher Westwing Collection share allowed for a
4.4pp higher adj. EBITDA margin at 9.8% (Q4 +8.1pp at 15.8%). With this, the
upper ends of the (raised) guidance were met.

FCF generation confirms the strong fundamentals. Free cash flow after lease
payments stood at EUR 23m (EUR 39m operating cash flow) raising the company's
cash position at the end of the year to EUR 91m. With this, Westwing can
easily finance its ongoing share buyback (from 02/26: up to EUR 8m) and
upcoming charges for outstanding stock option programs (up to EUR 10m impact).

FY26 guidance reflecting short-term noise as well as increasing European
traction. For FY26, management expects sales to grow by 5-10% yoy with ad.
EBITDA of EUR 36-48m. Growth expectations comprise positive implications from
last year's country launches as well as the recent UK market entry (i.e.
strong int. sales growth) but also increased cautiousness in Germany
(increased savings rates amid rising energy prices). On adj. EBITDA, the
guidance includes headwinds from lower order volumes, increasing freight
costs and increased marketing expenses for the UK entry. Mind you: The lower
ends imply no significant changes vs current momentum throughout the year.

Turnaround case remains in full swing. Since 2022, the current management
successfully turned Westwing into a profitable growth case, visible across
KPIs. Adj. EBITDA margin grew from -1% to almost 10% in FY25, thanks to
right-sized operational structures, reduced complexity, increased focus on
its premium assortment (Westwing Collection GMV share from 34% to 64%) and
structured entry into new European markets. With this, the company looks
well on track to deliver on its mid-term targets of continued high
single-digit (eNuW) annual sales growth and an adj. EBITDA margin greater
than 10%.

Valuation remains attractive in light of the healthy balance sheet and the
company having reached a pivotal point of sustainable profitable growth and
cash generation. Current market pricing of 4x EV/adj. EBITDA FY26e does not
adequately reflect that, in our view.

We confirm our BUY rating. Despite lowered adj. EBITDA estimates for the
short-term, the PT remains unchanged at EUR 23.50 as we lower the WACC to 9%
as we consider the operational turnaround as completed and the group has
entered the third phase of its transformation strategy "Scaling with
Operating Leverage".

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=64d4f72a6b3f388e477428c06d77f507
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 Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet 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=4611e613-2c02-11f1-8534-027f3c38b923&lang=en

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

2299842 30.03.2026 CET/CEST

°