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DGAP-News: Westwing Group SE / Key word(s): Quarter Results
Westwing reports first quarter 2022 results
Munich, May 11, 2022 // Westwing, the leader in inspiration-based Home & Living eCommerce in Europe, announced its results for the first quarter of 2022.
Westwing’s Group revenue amounted to EUR 111m (Q1 2021: EUR 138m) in the first quarter of 2022, a negative growth rate of -20% year-over-year against an extraordinarily strong baseline from previous year (Q1 2021 year-over-year growth: 105%). Revenue for the period was impacted by a weak demand environment with a low consumer sentiment, driven by inflationary pressures and macro uncertainty. On a segment level, the DACH segment generated revenue of EUR 61m, while the International segment generated EUR 50m.
The total number of Active Customers at the end of the first quarter of 2022 amounted to 1.6m, which was down by 7% year-over-year. Similar to the lower topline levels, Active Customer development was also heavily impacted by the currently low demand in Home & Living. New customer acquisition was down vs. the extraordinarily strong previous year, yet still significantly above pre-COVID levels.
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.
Webcast and Conference Call
Westwing’s Annual General Meeting is planned to take place as a virtual event on May 18, 2022.
For further information, please visit Westwing’s investor relations website at: firstname.lastname@example.org.
End of publication
11.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Westwing Group SE
Moosacher Straße 88
+49 (89) 550 544 377
+49 (89) 550 544 445
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
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