Westwing Group SE: Strategic Expansion and Financial Highlights

Westwing Group SE concluded a noteworthy year with a 1% increase in sales, achieving €449 million, primarily driven by a rise in the average basket size to €235, despite a minor decrease in customer numbers and order frequency. The fourth quarter showed an impressive 7% growth, attributed to successful sales events. Noteworthy, international sales surged by 15% in Q4, marking a successful expansion effort, now representing 45% of total sales.

The company improved its EBITDA margin to 9.8%, a 4.4 percentage point increase, through strategic cost-savings and increased Westwing Collection share. The firm's strong cash flow facilitated a comfortable €91 million cash position, supporting ongoing share buyback initiatives.

Looking ahead, FY26 projects a 5-10% sales growth, reflecting new European market entries, balanced by potential challenges in the German market due to rising energy costs. Despite expected short-term challenges, Westwing is on track for sustained growth, maintaining a "BUY" recommendation with a target price of €23.50.