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

Original-Research: Westwing Group SE - from NuWays AG 29.01.2025 / 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 from: 29.01.2025 Target price: EUR 17.00 Target price on sight of: 12 months Last rating change: Analyst: Henry Wendisch Trading update confirms guidance reach at upper end; chg. est Topic: WEW released a FY'24 trading update which points towards a sales and adj. EBITDA guidance reach at the upper end for both despite a muted consumer sentiment. In detail: FY'24 GMV was reported up 3.3% yoy at € 497m (eNuW: € 486m) which should have been the result of a continuation of a growing avg. basket size (eNuW: +11% yoy) and a return in growth of active customers (eNuW: +2% yoy), but dampened by a decline in number of orders (eNuW: - 7% yoy). As sales develop mostly proportionate to GMV, this would imply FY'24 sales of € 443m (eNuW old: € 435m), which stands at the top-end of the € 415-445m guidance range. Consequently, WEW also specified its adj. EBITDA guidance towards the upper end of the € 14-24m range (eNuW old: € 18m, eNuW new: € 20m, 4.5% adj. EBITDA margin). Here, we also expect the positive trend of an improving cost mix visible in Q1-Q3'24 to have positively affected profitability in Q4. The main driver should have been the improved gross margin (eNuW: +0.8% yoy) thanks to a higher private label share of 55% in FY'24 (58% in Q4'24). Also positively, WEW reported a positive FCF of € 9m for FY'24e (eNuW old: € 2m), which implies a Q4'24 FCF of € 20m which should stem from a large inventory reduction. Consequently, the strong net cash position stood at € 69m (eNuW old: € 58m), despite the € 10m share buyback program executed in Nov'24. Outlook 2025: Thanks to a still ongoing muted consumer sentiment, we do not expect a major demand swingback for WEW. Consequently, sales is seen to grow by 3.4% yoy to € 458m in FY'25e. For profitability, we expect a 0.4pp yoy margin improvement to an adj. EBITDA of € 23m, carried by a rising contribution margin as a further rising private label share should support a stronger gross margin (eNuW: +0.8pp yoy). In sum a solid release, showing that WEW maintained profitable growth with positive FCFs despite a muted consumer sentiment, assortment changes, restructuring expenses and the SaaS platform transformation. Against this backdrop, we reiterate our BUY recommendation with unchanged PT of € 17.00, based on DCF. You can download the research here: http://www.more-ir.de/d/31683.pdf 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: [e-mail] 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 Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

2076581  29.01.2025 CET/CEST