Q2 2025 Westwing Group SE Earnings Call Transcript
Key Points
- Westwing Group SE (WTWGF) improved its adjusted EBITDA by 61% to €6 million, marking a significant increase in profitability.
- The Western Collection, Westwing's private label product brand, grew by 19% year over year, achieving an all-time high GMV share of 65%.
- The company successfully launched operations in eight new countries in 2025, with plans to expand into two more by the end of the year.
- Westwing Group SE (WTWGF) maintained a strong net cash position of €50 million at the end of Q2, with no debt other than lease obligations.
- The company is on track to deliver a double-digit positive free cash flow for the full year 2025, driven by improved profitability and networking capital.
- Westwing Group SE (WTWGF) experienced a 3.6% decline in GMV year over year due to a more premium and smaller product assortment.
- Free cash flow was negative at minus €5 million in Q2 2025.
- The DACH region saw a sharper decline in sales and active customers in Q2 compared to Q1, despite a healthy German online market.
- The company faces challenges in achieving positive sales growth in the second half of 2025, with guidance indicating a range of minus 4% to 2%.
- Initial costs related to geographic expansion, particularly in marketing, are expected to impact profitability in the short term.
Good morning, everyone, and thank you for joining us for our earnings call on the second quarter of 2025. My name is Andreas Hoerning. I'm the CEO of Westwing. I'm hosting the call together with Sebastian Westrich, our CFO.
Looking at today's agenda, I will begin by providing key updates on our business for the second quarter of 2025, after which Sebastian will share the details of West Wing's financial performance.
After our investment highlight summary, we will be happy to take your questions.
Let's take a look at the current state of Westwing in Q2, we continue to improve profitability significantly despite a negative top line that developed in line with our expectations. Our GMV declined by 3.6% year by year due to a more premium and smaller product assortment according to our strategy.
We do, however, see a positive development in foreign trading. June GMV grew slightly, and this upward trend is strengthening. Hence, we continue to expect a positive second half of 2025.
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