Westwing reports first quarter 2022 results

• Westwing delivered revenue of EUR 111m in the first quarter of 2022 at -20% growth year-over-year against an extraordinary baseline from last year in a challenging demand environment with low consumer sentiment
• Adj. EBITDA for the Group amounted to EUR -1.7m at -1.5% Adj. EBITDA margin driven by lower topline alongside strategic investments into future growth
• High-margin Westwing Collection share stood at 37% of Group GMV, an increment of +6%pts vs. previous year
• Westwing confirms the outlook for 2022 at 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)

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.

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.

Webcast and Conference Call
Westwing's Q1 2022 earnings call will be broadcasted via live stream on May 11, 2022 starting at 10:00 AM (CEST) on the Company's investor relations website: ir.westwing.com. The recording of the live stream will be available thereafter at this site.

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: ir@westwing.com.

Contact
Westwing Group SE
Investor Relations
E-Mail: ir@westwing.de

About Westwing
Westwing is the leader in inspiration-based Home & Living eCommerce in Europe with EUR 522m of revenue in 2021. Through its 'shoppable magazine', Westwing inspires its loyal home enthusiast customers with a curated product selection and combines that with gorgeous content. With unparalleled loyalty, Westwing is generating more than 80% of sales from repeat customers. Westwing's mission is: “To inspire and make every home a beautiful home”. The company was founded in 2011 and is headquartered in Munich. Westwing went public on the Frankfurt Stock Exchange in October 2018 and is active in eleven European countries.

Disclaimer
Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and the Company undertakes no obligation to update or revise these statements. The Company's actual results may differ materially and adversely from any forward-looking statements discussed in this press release due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfillment centers, inaccurate personnel and capacity forecasts for fulfillment centers, hazardous material / conditions in production with regard to private labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.

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