Original-Research: Westwing Group SE (von NuWays AG): Kaufen
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Original-Research: Westwing Group SE - von NuWays AG
Einstufung von NuWays AG zu Westwing Group SE
Unternehmen: Westwing Group SE
ISIN: DE000A2N4H07
Anlass der Studie: Update
Empfehlung: Kaufen
seit: 08.05.2024
Kursziel: EUR 18.00
Kursziel auf Sicht von: 12 Monaten
Letzte Ratingänderung:
Analyst: Mark Schüssler
Healthy Q1 results // FY24 guidance confirmed
Healthy Q1 results underpin that Westwing was able to continue the trend of
yoy GMV growth witnessed in recent quarters. Q1 sales increased by 6% yoy
to EUR 109m (eNuW: EUR 107.7m), showing an acceleration of growth versus Q4
(+2% yoy), driven by growth in active customers (+2% yoy to 1.28m) and
basket size (+9% yoy to EUR 185). International and DACH grew 3% and 8% yoy,
respectively, implying continued market share gains amid ongoing challenges
in the German online Home & Living market (-4% yoy).
At the same time, efficiency measures are bearing fruit. Adj. EBITDA
arrived in line with expectations at EUR 6m in Q1 (eNuW: EUR 6.5m),
representing a margin improvement of 0.8ppts yoy to 5.8%. This was carried
by a strong contribution margin expansion of +4ppts yoy to 32%, a
favorable product mix (i.e. higher private label share, +5ppts yoy to 51%
of GMV in Q1), reduced fulfilment expenses (-2ppts yoy) as well as lower
G&A costs (-1ppts yoy) as a result of cost savings (i.e. consolidation of
logistics and warehouses and streamlining the organization). Notably,
Westwing was able to translate the favorable adj. EBITDA development into
healthy FCF of EUR 4m in Q1, supported by net working capital of EUR -18m,
likely concluding the reduction of excess inventory built up during Covid.
Westwing confirmed its FY24 guidance and with sales expected to develop
within a range of -3% to 4% yoy to EUR 415445m (eNuW: EUR 442m). While the Q1
performance was overall satisfactory, management continues to expect H2'24
sales to be weighed down by a strategic adjustment of the product offering
in Spain and Italy (low to mid single-digit percentage impact) along with
ongoing challenges in the home & living market as consumers continue to
hold back on higher-value products such as furniture.
The adj. EBITDA outlook was reiterated at EUR 14m to EUR 24m implying a 3.1 to
5.8% margin (eNuW: EUR 23.7m with a 5.4% margin). Considering EUR 6m adj.
EBITDA in Q1, the bottom-line guidance looks achievable, in our view, while
FCF for the full year should likely be close to break-even (eNuW: EUR 0.3m)
due to one-off restructuring costs (i.e. complexity reduction, SaaS
transition) and normalizing inventory patterns.
Overall, Westwing has adapted successfully to the current transition period
towards a leaner and more scalable organizational setup. While visibility
on a return of consumer confidence remains low, Westwing's mid-term
prospects continue to look bright driven by the structural shift towards
e-commerce and its unique positioning in the European home & living market.
We reiterate our BUY recommendationwith a PT of EUR 18.00, based on DCF, and
keep the stock on our Alpha List.
Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/29623.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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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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Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
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