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Westwing Group AG (DE:WEW)
XETRA:WEW
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Westwing Group AG (WEW) AI Stock Analysis

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DE:WEW

Westwing Group AG

(XETRA:WEW)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
€12.00
▼(-2.44% Downside)
Westwing Group AG's overall stock score reflects a mixed financial performance with significant challenges in revenue growth and cash flow management. The earnings call provided positive insights into profitability improvements and strategic expansions, which partially offset the high valuation concerns and neutral technical indicators.

Westwing Group AG (WEW) vs. iShares MSCI Germany ETF (EWG)

Westwing Group AG Business Overview & Revenue Model

Company DescriptionWestwing Group SE, together with its subsidiaries, engages in the home and living eCommerce business. The company operates through two segments, DACH and International. It offers textiles, furniture, kitchen accessories, rugs, and home décor and accessories, as well as lighting, dining, and other products. The company provides its products under own and private label, and third-party brands. It has operations in 11 European countries, including Germany, Austria, Switzerland, Poland, France, Spain, Belgium, the Netherlands, the Czech Republic, Slovakia, and Italy. The company was incorporated in 2011 and is headquartered in Munich, Germany.
How the Company Makes MoneyWestwing Group AG generates revenue primarily through the sale of home and living products on its e-commerce platform. The company employs a direct-to-consumer model, where it sources products from various suppliers and sells them directly to customers, allowing for a higher margin compared to traditional retail. Key revenue streams include sales from its curated product offerings, membership fees from its loyalty program, and additional revenues from strategic partnerships with brands and designers for exclusive collections. Furthermore, the company benefits from seasonal sales promotions and marketing campaigns aimed at driving customer engagement and repeat purchases. Westwing's business model is supported by an efficient logistics network and a robust online marketing strategy that enhances brand visibility and customer acquisition.

Westwing Group AG Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Westwing's strong profitability improvements, successful geographic and store expansions, and a solid performance in its Westwing Collection and international segment. However, the company faced challenges with declining revenue in the DACH segment, negative impacts from product assortment changes, and a negative EBIT due to stock option adjustments. Overall, the positive aspects significantly outweigh the challenges.
Q3-2025 Updates
Positive Updates
Significant Improvement in Profitability
Adjusted EBITDA increased by 73% year-over-year, reaching EUR 6 million with an adjusted EBITDA margin of 6.1%, a 2.5 percentage point increase year-over-year.
Positive Free Cash Flow
Free cash flow was positive at EUR 10 million in Q3, and the company ended the third quarter with a net cash position of EUR 58 million.
Strong Growth of Westwing Collection
The Westwing Collection grew by 19% year-over-year, resulting in an all-time high group GMV share of 66%.
Successful Geographic and Store Expansion
The company launched in 10 new countries and opened 7 new stores in 2025, achieving its full-year objectives.
Strong Performance in International Segment
International segment revenue increased by 10.8%, benefiting from geographic expansion.
Negative Updates
Decline in DACH Segment Revenue
The DACH segment saw a revenue decline of 2.4% year-over-year.
Challenges with Product Assortment Changes
Changes in product assortment negatively impacted revenue, causing a decline in orders and active customers.
Negative EBIT and Stock Option Impact
Excluding adjustments, Q3 showed a negative EBIT of minus EUR 4 million, mainly due to the negative impact of a higher fair value of employee stock option programs.
Company Guidance
In the Q3 2025 earnings call, Westwing Group SE provided a robust update on their financial performance and strategic initiatives. The company reported a 5.4% year-over-year increase in GMV, reaching an adjusted EBITDA of EUR 6 million at a 6.1% margin, marking a 73% improvement year-over-year. Free cash flow was positive at EUR 10 million, ending the quarter with a net cash position of EUR 58 million. The Westwing Collection saw significant growth, with a 19% year-over-year increase, contributing to a 66% share of group GMV. The company expanded geographically by launching in 10 new countries and opened 7 new stores, aligning with their 3-step value creation plan. Westwing confirmed its financial guidance for 2025, expecting adjusted EBITDA at the upper end of the range, and expressed confidence in achieving high-single to double-digit growth and improved profitability by 2026.

Westwing Group AG Financial Statement Overview

Summary
Westwing Group AG faces challenges in revenue growth and cash flow management, with declining revenue and negative free cash flow growth. While there are improvements in profitability margins and return on equity, the company needs to address cash flow issues and leverage its assets more effectively to enhance financial stability.
Income Statement
45
Neutral
Westwing Group AG's income statement shows declining revenue growth with a negative trend in recent years, particularly a -1.44% drop in TTM. The gross profit margin remains stable at around 51%, but net profit margins are low at 0.96% TTM, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins have improved to 1.21% and 5.10% respectively in TTM, showing some operational efficiency gains.
Balance Sheet
55
Neutral
The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.55 in TTM, indicating manageable debt levels. Return on equity has improved to 6.67% in TTM, showing better utilization of equity. However, the equity ratio is not explicitly calculated, suggesting a need for more comprehensive asset management analysis.
Cash Flow
40
Negative
Cash flow analysis reveals a concerning trend with negative free cash flow growth of -49.23% in TTM, indicating cash outflows. The operating cash flow to net income ratio is low at 0.04, suggesting weak cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting potential liquidity issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue436.90M444.40M428.60M430.90M522.40M432.80M
Gross Profit224.10M225.70M212.90M202.80M256.70M213.90M
EBITDA22.30M17.10M12.40M-11.00M33.40M41.00M
Net Income4.20M-5.00M-12.40M-32.40M12.00M29.80M
Balance Sheet
Total Assets182.90M199.30M203.40M228.30M277.40M229.00M
Cash, Cash Equivalents and Short-Term Investments49.70M68.80M81.50M76.00M97.30M104.80M
Total Debt34.10M33.40M36.70M44.70M45.80M28.90M
Total Liabilities120.60M139.90M128.40M138.20M158.10M120.30M
Stockholders Equity62.30M59.40M75.00M90.10M119.30M111.50M
Cash Flow
Free Cash Flow-6.60M6.40M27.90M-21.40M3.80M39.30M
Operating Cash Flow3.50M16.60M33.30M-7.50M18.70M47.50M
Investing Cash Flow-5.00M-7.50M-3.80M-11.40M-16.00M-8.00M
Financing Cash Flow-20.50M-21.80M-23.90M-2.70M-9.70M-7.30M

Westwing Group AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.30
Price Trends
50DMA
11.83
Positive
100DMA
10.82
Positive
200DMA
9.34
Positive
Market Momentum
MACD
0.05
Negative
RSI
59.32
Neutral
STOCH
47.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WEW, the sentiment is Positive. The current price of 12.3 is above the 20-day moving average (MA) of 11.78, above the 50-day MA of 11.83, and above the 200-day MA of 9.34, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 47.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WEW.

Westwing Group AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€162.93M3.6335.60%5.73%-25.88%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
€142.22M32.444.74%7.69%-8.36%-38.64%
60
Neutral
€128.66M5.2026.85%-11.68%4.45%
52
Neutral
€239.26M51.203.63%-0.32%
45
Neutral
€69.22M-11.28%54.27%
45
Neutral
€1.06B-10.893.44%5.93%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:WEW
Westwing Group AG
12.30
4.34
54.52%
DE:LEI
Leifheit
15.00
0.15
0.98%
DE:GFG
Global Fashion Group
0.29
0.03
11.54%
DE:NVM
Novem Group SA
2.99
-3.17
-51.46%
DE:YOU
ABOUT YOU Holding SE
6.67
3.53
112.42%
DE:TPG
fashionette AG
7.98
0.38
5.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 06, 2025