Original-Research: Westwing Group SE (von NuWays AG): BUY

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

Entering UK, unlocking significant growth potential

Westwing announced its anticipated entry into the United Kingdom, its 23rd European market and the last major strategic white spot on the company’s map. The launch is comprehensive from day one, covering the full Westwing Collection alongside a curated mix of international and local UK partner brands including Kartell, Georg Jensen, Le Creuset, Louis Poulsen and Trudon. Westwing is also bringing its full service suite to the UK from the outset: the Westwing Design Service, the B2B offering and the Delivery & Assembly Service. The move is a direct execution of Phase 3 of Westwing’s three-step value-creation plan: Scaling with Operating Leverage.

The UK entry is the direct confirmation of what we flagged as imminent in our latest update two weeks ago, happening faster than anticipated. The strategic rationale is compelling. We estimate the UK Home & Living market at around € 20bn, representing roughly 15% of Westwing’s existing addressable market, making this by far the largest single market addition in the company’s history. Structurally, the UK is also one of the most attractive e-commerce markets globally, with approximately 87% of internet users shopping online, a backdrop more favourable than most of the 22 markets Westwing already serves.

The expansion model remains asset-light and low-risk, with no fixed infrastructure commitments, marketing investment gated by return thresholds and a brand British consumers are likely already familiar with, given Westwing’s position as the world’s largest inspirational home and living social media account. Launching with the full service stack from day one signals conviction rather than a test-and-learn approach, which bodes well for early customer economics.
The UK entry is one of the single most significant country launches in Westwing’s history and a tangible validation of the Phase 3 thesis. Looking ahead, we see a clear path for Westwing to deliver double-digit revenue growth in FY26e (eNuW: 10.3%), underpinned by the UK contribution, recent market entries and the continued premiumisation of the assortment. On profitability, the structural margin improvement story remains intact: adj. EBITDA of € 43m in FY25 was already well ahead of original expectations, with management targeting 10%+ adj. EBITDA margins in the medium term. Cash generation adds further conviction, with € 25m of net cash flow in FY25 and a net cash position of € 94m at year-end, providing a significant buffer and optionality.

At a mere 3.7x FY26e EV/adj. EBITDA, the shares remain undemanding for a business of this quality and trajectory. After all, Westwing makes for a textbook example of a successful turnaround. We confirm our BUY rating (also still part of our AlphaList) with an unchanged € 23.50 PT based on DCF.
 

You can download the research here: westwing-group-se-2026-02-26-update-en-d2c35
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
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