Westwing Group SE

Q2 revenue increased 14% year over year to EUR 113 million; revenue growth was 13% in the first six months of 2026. Adjusted EBITDA in Q2 was EUR 5.4 million in Andreas Hoerning’s remarks and EUR 5 million in Sebastian Westrich’s financial review, with EBITDA margin cited at 4.8%; both said this was down about EUR 800,000 year over year. Gross margin declined 0.7 percentage points year over year to 51.9%, contribution margin fell 3.3 percentage points to 30.2%, and adjusted EBIT margin was 1.3%, down 1 percentage point. Net working capital was negative EUR 5.5 million at quarter-end, EUR 11 million better than a year ago, and net cash was EUR 68 million. Full-year 2026 guidance was confirmed at revenue of EUR 470 million to EUR 495 million and adjusted EBITDA of EUR 36 million to EUR 48 million; management said revenue should land in the upper half of the guided range. In current trading, July group growth was broadly flat, and management said Q3 growth is expected to remain below the first-half pace.

Andreas Hoerning said the quarter showed strong top-line momentum despite a challenging macro backdrop, and he framed the business as progressing well on a three-step value-creation plan. He highlighted expansion into new countries, improving offline presence, and the recent technology overhaul as key strategic moves that should support customer experience and operating leverage over time. His tone was confident and constructive, while acknowledging temporary headwinds from weather, macro softness, and a brand-marketing ramp later in the year.

Sebastian Westrich focused on the mechanics behind the quarter’s profitability and cash flow. He said gross margin fell to 51.9% due to a lower Westwing Collection share, transportation cost increases, and unfavorable mix, while contribution margin dropped to 30.2% and adjusted EBITDA margin to 4.8%. He noted one-off costs from the order and warehouse management systems migration were about EUR 1.4 million in Q2, that Q3 migration costs should be much lower, and that the first half of 2026 CapEx was EUR 6 million, or 2.4% of revenue. He also highlighted EUR 68 million of net cash, negative free cash flow of about EUR 9 million in Q2 after EUR 9 million of stock-option settlements, and said outstanding legacy stock options should decline by around 70% by mid-2027.

Analysts asked for like-for-like growth excluding expansion, detail on the systems migration, the long-term target for country and store expansion, U.K. performance, and whether the company might introduce dividends. Management said like-for-like growth in pre-2024 markets excluding offline was low to mid-single digits, while the full group was flat in July due to weather and weak existing-market demand. On the systems migration, Sebastian said the full Q2 one-off effect was tied to the new order and warehouse management systems, with roughly EUR 1.4 million impact in the quarter, and explained the benefits included shorter delivery times, more flexible delivery scheduling, and better warehouse efficiency from improved inbound and picking processes. On capital returns, Sebastian said there are currently no plans to propose a dividend, though the company will keep evaluating buybacks and dividends as uses of excess capital.