Topic: Westwing delivered its fifth consecutive quarter of growth, despite a soft consumer backdrop and higher freight costs. The figures show a company steadily turning into an international premium home & living brand, and doing so profitably. In detail:
Q3 topline driven by international. Revenues rose 13% to € 111m (eNuW: € 108m), helped by the shipment of backlog from the Q2 system migration. After a flat July, when the heatwave kept customers away, momentum built through August and September. International remained the clear growth engine (+22% yoy), while DACH returned to growth after a weak July (+5% yoy). Importantly, DACH was carried by both, online and offline growth. Active customers rose 13% to 1.32m and orders 9%. AOV eased 2% to € 247 as price-sensitive customers concentrate purchases around sales events and have a tendency to buy lower-ticket items.
Margin held despite the freight shock. Adj. EBITDA grew 7% to € 6.5m (5.8% margin, -0.3pp yoy, eNuW: 6.2% margin). Fuel-driven container and outbound logistics costs, migration effects, mix effects (lower WEW sales share) and the UK logistics ramp-up cut the contribution margin by 4.3pp. Yet c. 4pp of leverage on marketing and G&A offset almost all of it. Price adjustments, higher shipping fees and logistics efficiencies were implemented in Q3 and already lifted margins visibly in October.
Footprint and brand advanced in parallel. Five launches in Q3 (Baltics, Ireland, Bulgaria) take Westwing to 28 countries, covering almost all of Europe. The UK, entered in March, is the largest market addition. In October, Victoria Beckham debuted her first homeware collection with Westwing, backed by a brand campaign in Germany and the UK, a strong signal of the brand's standing in the design world. The Westwing Collection accounted for 64% of GMV (-2pp yoy), as partner design brands grew faster (+13% vs +4%).
Guidance confirmed, revenue in the upper half. FY26 targets of € 470-495m revenue and € 36-48m adj. EBITDA stand. After 9M revenue of € 345m, the upper half implies Q4 sales of € 138-150m (eNuW: € 148m, +4% yoy). Our adj. EBITDA estimate of € 42m requires c. € 20.5m in Q4 (Q4 25: € 22.6m), leaving room for the brand campaign (implied 2.1pp margin decline).
Self-funded expansion. Q3 FCF of € -0.7m (Q3 25: € 10.4m) mainly reflects inventory timing. Net cash stood at € 63m (+€ 5m yoy) with NWC still negative. We expect c. € 90m by year-end after the seasonally strong Q4. This funds both growth and the new buyback (up to € 10m, started Oct 12). Next on the agenda are warehouse consolidation in Poland, AI-driven productivity, B2B and partner channels, i.e. levers to lift margins beyond FY26.
Quality at a discount. Westwing combines pan-European reach, a recognised premium brand, double-digit growth and a cash-rich balance sheet, yet trades at only 4.8x FY26e EV/adj. EBITDA. The young markets and the UK add further upside, and management's delivery on the value creation plan supports our conviction. We confirm BUY with an unchanged € 23.50 PT (DCF).
ISIN: DE000A2N4H07
