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

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Original-Research: Westwing Group SE - from NuWays AG

28.11.2025 / 09:00 CET/CEST

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Classification of NuWays AG to Westwing Group SE

Company Name: Westwing Group SE

ISIN: DE000A2N4H07

Reason for the research: Update

Recommendation: Buy

from: 28.11.2025

Target price: EUR 22.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Following years of post-covid normalization, WEW is back on a self-induced

growth path, independent of the consumer sentiment. With this multi-pager we

dive deeper into this compelling investment case of one of our alpha ideas:

Rightsizing at the right time, in the right way. The post-COVID value

creation plan fundamentally reshaped the company's operating model.

Management swiftly adapted to a new demand environment while always keeping

a lean, scalable expansion across Europe in sight. The company rightsized

its cost base, restructured several markets, modernized IT, and centralized

logistics into a state-of-the-art hub, driving fulfillment efficiency gains

and cost control. These actions have created a more agile and efficient

organization, well positioned to capture future growth opportunities.

Westwing Collection - higher value, higher margins. As a result of the rise

in WWC share of GMV from 41% in FY Ž22 to 65% in FY Ž25e, AOV went up from EUR

154 in FY Ž22 to EUR 242 in FY Ž25e. Consequently, a higher average order

value (AOV) has driven structural gross margin gains (47.1% in FY Ž22 to

52.2% in FY Ž25e) and deeper brand loyalty. As the mix shifts further

towards WWC, we see continued upside to profitability, one of WestwingŽs key

long-term levers.

European expansion resumes; UK next? We anticipate rapid progress in

recently entered markets, with early signs already visible in the

International segment's +11% yoy sales growth in Q3 '25. As Westwing

continues to build scale across Europe, the next strategic leap should be

the UK, a high-potential market that could significantly expand its

addressable market reach and validate the brand's ability to replicate

success beyond the EU. We see this as a key catalyst for an accelerating

top-line and as further re-rating potential.

High cash-generation with recovering capital efficiency. WEW's business

model benefits from favorable working capital dynamics, allowing it to

operate with mostly negative WC and strong cash conversion. Currently,

around 10% of sales convert to FCF, a figure expected to rise toward up to

20% as margins continue to improve. In addition, capital efficiency should

recover from negative levels (eNuW: 13% ROIC FY Ž25 vs -7% in FY Ž24),

lifted by higher adj. EBITDA margins, and decreasing amortization of

intangibles, as the company leaves the legacy shop software change behind.

The combination of a highly attractive valuation (4.2x FY'26e EV/adj.

EBITDA), managementŽs clockwork delivery of the value creation plan,

imminent topline growth with operating leverage, a strong net cash position

(EUR 58m per Q3 Ž25) and upbeat cash generation, underpins our conviction in a

high-reward investment case and a compelling entry point into one of

EuropeŽs leading design brands. Therefore, we reiterate our BUY rating and

keep WEW in our AlphaList with an unchanged PT of EUR 22.00, based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=4be32c6167c480971076e2869fa47b72

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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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.

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2237190 28.11.2025 CET/CEST

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