Online European furniture business Westwing has reported a decline in first quarter sales but an improvement in EBITDA.

According to its latest trading update for Q1 2025, total sales fell by 1.2% to €107.5m from €108.6m due to shifts in product assortment.

Adjusted EBITDA increased to €9m, up from €6m, at an adjusted EBITDA margin of 8% (+3pp year-over-year).

Since the beginning of the year, Westwing made meaningful progress towards its strategic objectives for 2025. In March, the Company opened a new store in Leipzig, Germany, followed by the launch of a store-in-store at Printemps in Paris, France, in April.

Additionally, Westwing expanded its geographic presence to Luxembourg and Denmark in the first quarter, followed by Sweden in April.

Westwing confirms its outlook for FY 2025, and currently does not expect a rebound of consumer demand in 2025, and expects, thus again, a challenging market environment with high uncertainty.

In addition, management expects ongoing topline losses in 2025 from the introduction of a mostly global and more premium product assortment, especially in the first half of the year. Therefore, for the full year 2025, Westwing forecasts revenue between €425m and €455m with a year-over-year growth rate of -4% to +2%.

While topline outlook “remains dampened”, the transformation of 2024 allows for “significant profitability improvement” in 2025. Westwing expects an adjusted EBITDA between €25m and €35m at an adjusted EBITDA margin in the range of +6% to +8%.

Dr Andreas Hoerning, CEO of Westwing, commented: “The first quarter marks a strong start into the year, with significantly improved profitability as a result of the changes we implemented in 2024. As we are continuing with the third phase of our 3-step value creation plan, we are fully on track to unlock Westwing’s full potential.”