Original-Research: Westwing Group AG - von NuWays AG

Einstufung von NuWays AG zu Westwing Group AG

Unternehmen: Westwing Group AG
ISIN: DE000A2N4H07

Anlass der Studie: Q3 Review
Empfehlung: BUY
seit: 10.11.2023
Kursziel: € 19,00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Mark-Hendrik Schüssler

Top and bottom line recovery in full swing, est. & PT chg.

Westwing released strong Q3 results and lifted its FY 2023 adj. EBITDA guidance. Q3 sales increased by 5.2% yoy to € 92.9m (eNuW: € 91.3m), indicating a sequential improvement versus Q2 (-1.2% yoy). Sales in DACH returned to growth (3.6% yoy vs. -5.5% yoy in Q2), while International improved sequentially to 6.5% yoy (vs. 5.6% yoy in Q2). Following several quarters of decline, the number of active customers grew by 0.8% qoq to 1.26m (vs. -1% qoq in Q2). Westwing was able to boost share of wallet by increasing GMV per customer by 6% yoy to € 377, demonstrating Westwing's loyal customer base and fruitful efforts to improve customer experience and product offering.

Adj. EBITDA was better than expected and came in at € 2.4m (eNuW: € -0.4m) versus € -4.4m in Q3 22, delivering the fourth profitable quarter in a row and reflecting that efficiency measures are bearing fruit and the company successfully increases its private label share (48% of GMV in Q3 vs. 44% in Q3 2022). Consequently, adj. EBITDA margin rose by 7.6pp yoy to 2.6% and FCF strongly improved to € 3m in Q3 (vs. € -1m in Q3 22) mainly driven by more efficient working capital.

Westwing confirmed its FY 2023 revenue guidance, still expecting the upper half of its sales target, ranging from -9% to 2% yoy or € 390 to 440m (eNuW new: € 438m, eCons new: € 432.7m). However, the company raised its FY 2023 adj. EBITDA guidance (previously € 4 - 13m) and now expects to achieve an adj. EBITDA of € 13 - 19m for the full year (eNuW new: € 20m, eCons new: € 14.2m) with a margin of 3 - 4.6% (eNuW new: 4.5%, eCons new: 3.3%). The lifted adj. EBITDA guidance is based on stronger than expected preliminary October results and hence a better outlook for Q4 2023. FCF is expected to turn significantly positive in FY 2023 (eNuW: € ~20m) driven by improved profitability and lower inventory levels.

Overall, Westwing’s better-than-expected Q3 results indicate that the company seems to have passed the trough. During the earnings call, management reaffirmed its view that the company is on track to continue top and bottom line yoy growth in Q4 2023 thanks to promising indications from OneWestwing and ongoing efficiency measures. Given that Q4 is typically Westwing’s strongest quarter, FY 2023 adj. EBITDA guidance looks conservative, in our view.

BUY, changed PT € 19.00 (old: € 18.00), based on DCF.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/28225.pdf
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden www.nuways-ag.com/research.

Kontakt für Rückfragen
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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