Online European furniture business Westwing expects full year sales to show growth along with profitability.
According to its latest trading update, Gross Merchandise Volume (GMV) in the fourth quarter of 2024 rose by +1% year-over-year to EUR 149 million from EUR 147 million.
“As expected, the strategic switch to a mostly global and more premium product assortment continued to dampen topline growth in the final quarter of the year to a greater extent than in previous quarters,” Westwing said.
Full year 2024 GMV increased by +3% year-over-year to EUR 497 million from EUR 481 million). Revenue for FY 2024 is expected to be at the upper end of the guided range of EUR 415 million to EUR 445 million.
In terms of profitability, Westwing expects a positive adjusted EBITDA in the fourth quarter of 2024 and an adjusted EBITDA for FY 2024 at the upper end of the guidance of EUR 14 million to EUR 24 million.
“Westwing generated positive free cash flow in the fourth quarter of 2024, resulting in a full-year free cash flow of EUR 9 million for FY 2024,” it said. “The Company maintained a strong net cash position of EUR 69 million, despite share buybacks of EUR 11 million and one-off restructuring costs associated with complexity reduction measures.
“Westwing also achieved important operational targets in line with the second phase of the 3-step plan to unlock the full value potential of the Company. This includes the increase of the Westwing Collection share by +11 percentage points year-over-year to 58% of GMV in the fourth quarter of 2024 (Q4 2023: 47%), which resulted in a new full-year all-time high of 55% of GMV (FY 2023: 47%).”
