DGAP-News

Westwing reports first quarter 2022 results - Seite 2

In terms of profitability, Adj. EBITDA for the period amounted to EUR -1.7m (Q1 2021: EUR 20m) corresponding to an Adj. EBITDA margin of -1.5% (Q1 2021: 14.2%). Profitability declined year-over-year due to continued cost pressure from global supply chain disruptions and a generally high inflationary environment. Moreover, fulfillment costs also increased for the period due to lower utilization of the increased warehouse infrastructure and ongoing high temporary storage costs for elevated inventory levels. Additionally, strategic investments into Technology, Westwing Collection, and Marketing to enable long-term growth also resulted in profit compression in the nearer-term.

The strategically important and high-margin Westwing Collection generated 37% of overall Group GMV (+6 percentage points year-over-year) in the first quarter of 2022. The planned expansion of Westwing Collection into further categories is on track for this year, which will further pave the way to achieving the 50% Westwing Collection strategic target share as a percentage of Group GMV.

"Westwing is a major innovator in Home & Living eCommerce. Despite short-term macro challenges, we are committed to taking the proper investments into our business for future growth while focusing on cost efficiency for profitability. We are inspiring existing and future customers with our beautiful products, inspirational style and unique content – providing a tremendous opportunity to reach even more customers in our vast market.” says Westwing CEO and Founder Stefan Smalla.

Outlook 2022
Westwing confirms its outlook for 2022 published in March 2022. Based on significantly lower consumer sentiment observed across all segments over the last months, Westwing now expects to meet the lower half of the full year guidance in terms of Revenue (EUR 460m to 540m at -12% to +3% yoy growth) and Adj. EBITDA (EUR -9m to +16m at -2% to +3% Adj. EBITDA margin). Growth rate for the second half of 2022 is expected to be significantly improved compared to the first half, after the strong year-over-year baseline effects of the first half of the year phase out.