Online European furniture business Westwing has reported a reduction in revenues during its first quarter of 2022.
Westwing’s Group revenue amounted to EUR 111m (Q1 2021: EUR 138m), a negative growth rate of -20% year-on-year against an ‘extraordinarily strong baseline’ from previous year (Q1 2021 year-over-year growth: 105%).
The group said that sales were impacted by a ‘weak demand environment with a low consumer sentiment’, driven by ‘inflationary pressures and macro uncertainty’.
In terms of profitability, Adjusted EBITDA for the period amounted to EUR -1.7m (Q1 2021: EUR 20m) corresponding to an Adjusted EBITDA margin of -1.5% (Q1 2021: 14.2%).
Profitability declined year-on-year due to continued ‘cost pressure from global supply chain disruptions and a generally high inflationary environment’.
Stefan Smalla, Westwing CEO and Founder, said: “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.”
Looking ahead, 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,” the company added.