Online European furniture business Westwing has reported a growth in second quarter sales and makes further progress in its 3-step strategy.
According to its latest trading update for Q2 2024, total sales rose 4% to €106m, which was driven by a significant increase in average spend per order of 11% year-over-year to €198 in Q2 2024, as well as a 2% growth in active customers compared to the previous year’s second quarter.
With regards to profitability, Westwing reported €4m adjusted EBITDA in Q2 2024, unchanged from the same period last year, corresponding to an adjusted EBITDA margin of 3.7% – down from 4.4%.
Westwing said that the result was driven by continued expansion of the high margin Westwing Collection, efficiency gains in fulfilment, and sustained investments into brand awareness.
The Westwing Collection reached an all-time high of 53% share of overall Group GMV in Q2 2024, an increase of 7 percentage points compared to previous year’s second quarter.
The company added that it has made good progress on its 3-step plan to unlock its full value potential and announced further measures to reduce complexity and strengthen its premium brand positioning.
During the period, it launched new platforms in Portugal and the Netherlands. The former also marked the first market expansion for Westwing since 2014.
“Equally serving the goals of complexity reduction, premium brand positioning and OneWestwing commercial model, the switch to a mostly global product assortment and the related reorganisations are making good progress,” Westwing said.
“Both were completed for Italy and Spain in the second quarter and will now be rolled out to Central and Eastern Europe. On top, premiumisation of the product assortment will accelerate on a global level, with products phasing out that are less premium and less profitable.
“While topline impact will be negative, the measures will reduce costs and strengthen the positioning of the Company.”
Looking ahead, Westwing confirms the financial guidance for 2024 with revenue of €415m to €445m at -3% to +4% year-over-year growth and an adjusted EBITDA of €14m to €24m (+3% to +5% adjusted EBITDA margin).
Dr Andreas Hoerning, CEO of Westwing, commented: “I am very proud of the progress we are making on our 3-step plan to unlock Westwing’s full value potential. Not only did we complete the centralisation of our Italian and Spanish businesses, but we also expanded to Portugal as our first new country in 10 years.
“It is also the first country to run on our predominantly SaaS-based technology platform that comes with a new, gorgeous web design. This brings us another step closer to becoming Europe’s leading premium one-stop destination in Home & Living.”
