Westwing Group SE

Westwing Group SE reports a liquidity position of EUR 81.9 million in cash and equivalents, with a current ratio of 1.35, indicating moderate short-term liquidity coverage. The company's debt-to-equity ratio of 0.49 suggests a relatively conservative capital structure, with long-term debt of EUR 35.9 million and total equity of EUR 72.6 million. However, the free cash flow of EUR -1.4 million and capital expenditure of EUR -5.3 million indicate ongoing reinvestment and operational cash outflows.

Profitability metrics show a return on equity of -2.62% and a return on assets of -0.89%, both below the typical thresholds for healthy performance in the retail sector. The company reported a net loss of EUR 1.9 million and an operating loss of EUR 1.5 million, reflecting challenges in maintaining profitability amid competitive pressures and cost management.

The company's revenue is concentrated in its core e-commerce platform, with no disclosed geographic breakdown in the latest financials. This lack of geographic diversification may expose the company to regional economic fluctuations. No material revenue concentration by product segment is reported, but the company's reliance on a single business model increases exposure to market shifts.

Outlook for the current fiscal year shows a revenue of EUR 108.7 million, with no specific guidance for the next fiscal year. Analysts have provided a mean price target of EUR 21.83 and a median of EUR 23.50, suggesting a potential upside from the current market price. However, the absence of forward-looking revenue growth guidance limits visibility into the company's long-term trajectory.

Risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected. The company's capital structure remains stable, and no dilutive events are currently anticipated. However, the negative net income and operating income suggest ongoing operational challenges that may require further capital deployment or cost optimization.

Recent filings and transcripts do not disclose any material events or strategic shifts. The company's financial performance remains under pressure, with analysts providing a mean recommendation of 1.67, indicating a cautiously optimistic outlook. No significant changes in business strategy or market positioning have been reported in the latest disclosures.

Analysts project 41.3% upside to a mean price target of EUR 21.83, signaling strong market confidence in future performance.

Projected 2026 net income of EUR 29.1 million represents a 682% year-over-year increase, indicating a significant profitability turnaround.

Long-term debt decreased to EUR 33.4 million in 2025, reflecting a consistent deleveraging trend from EUR 45.8 million in 2022.

Free cash flow is projected to surge 580.8% to EUR 35.4 million in 2026, demonstrating improved operational cash generation.

The debt-to-equity ratio of 0.49 is below the department store cohort median of 0.52, suggesting a relatively conservative capital structure.

Operating margin of -1.38% places the company in the bottom quartile of the 117-firm department store cohort, indicating weak profitability.

Return on equity of -2.62% ranks in the bottom quartile of peers, highlighting inefficient use of shareholder capital.

Revenue declined at a 3.7% compound annual growth rate from 2022 to 2026, signaling a shrinking top-line business trajectory.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or securing favorable financing.

Cash conversion of -5.79 is significantly worse than the cohort median of 1.47, indicating poor efficiency in turning earnings into cash.

Revenue €143.1M, +6,9% YoY; Operating income +654,2% YoY.

• ▍Revenue €143.1M, +6,9% YoY
• ▍Operating income +654,2% YoY
• ▍Net income +1 582,3% YoY
• ▍Free cash flow +814,7% YoY
• ▍Net margin 20.0%

Revenue €99.0M, +3,3% YoY; Operating income −34,5% YoY.

• ▍Revenue €99.0M, +3,3% YoY
• ▍Operating income −34,5% YoY
• ▍Net income −100,0% YoY
• ▍Free cash flow −1 650,0% YoY
• ▍Net margin -3.8%

Revenue €99.6M, −6,0% YoY; Operating income +175,0% YoY.

• ▍Revenue €99.6M, −6,0% YoY
• ▍Operating income +175,0% YoY
• ▍Net income +160,0% YoY
• ▍Free cash flow +8,8% YoY
• ▍Net margin 1.8%

Revenue €107.5M, −1,1% YoY; Operating income +273,3% YoY.

• ▍Revenue €107.5M, −1,1% YoY
• ▍Operating income +273,3% YoY
• ▍Net income +226,3% YoY
• ▍Free cash flow +385,7% YoY
• ▍Net margin 2.2%

Revenue €133.9M; Operating income €2.4M.

• ▍Revenue €133.9M
• ▍Operating income €2.4M
• ▍Net margin 1.3%

Revenue €95.8M; Operating income -€2.9M.

• ▍Revenue €95.8M
• ▍Operating income -€2.9M
• ▍Net margin -2.0%

Revenue €106.0M; Operating income -€2.8M.

• ▍Revenue €106.0M
• ▍Operating income -€2.8M
• ▍Net margin -2.8%

Revenue €108.7M; Operating income -€1.5M.

• ▍Revenue €108.7M
• ▍Operating income -€1.5M
• ▍Net margin -1.7%

Revenue €449.2M, +1,1% YoY; Operating income +493,8% YoY.

• ▍Revenue €449.2M, +1,1% YoY
• ▍Operating income +493,8% YoY
• ▍Net income +682,0% YoY
• ▍Free cash flow +580,8% YoY
• ▍Net margin 6.5%

Revenue €444.3M, +3,7% YoY; Operating income +42,9% YoY.

• ▍Revenue €444.3M, +3,7% YoY
• ▍Operating income +42,9% YoY
• ▍Net income +59,7% YoY
• ▍Free cash flow +188,9% YoY
• ▍Net margin -1.1%

Revenue €428.6M, −0,5% YoY; Operating income +69,3% YoY.

• ▍Revenue €428.6M, −0,5% YoY
• ▍Operating income +69,3% YoY
• ▍Net income +61,7% YoY
• ▍Free cash flow +106,4% YoY
• ▍Net margin -2.9%

Revenue €430.8M, −17,6% YoY; Operating income −229,9% YoY.

• ▍Revenue €430.8M, −17,6% YoY
• ▍Operating income −229,9% YoY
• ▍Net income −370,0% YoY
• ▍Free cash flow −380,2% YoY
• ▍Net margin -7.5%