Brad Hathaway of Far View Capital Management presented his investment thesis on Westwing (Germany: WEW) at European Investing Summit 2025.
Thesis Summary
Westwing is a European direct-to-consumer online home furnishings retailer operating in 22 countries. Founded in Germany in 2011, the company uses a content-led strategy to drive strong user engagement and cohort economics, with 80% of orders coming from repeat customers. It targets a premium “masstige” position with a primarily female customer base. Westwing is exiting a multi-year transformation that unified its commercial model, reduced costs, and migrated its backend to an external SaaS platform, creating a more scalable foundation.
Brad believes an opportunity exists as the industry begins a cyclical recovery from a post-COVID downturn. This downturn improved WEW’s competitive environment, as key online competitors like Made.com have liquidated and Wayfair has exited the German market. Westwing is positioned as a survivor ready to take share in an upturn. Furthermore, the company’s progress is currently obscured in its 2025 financials.
2025 results are artificially depressed, masking the transformation’s success. The company’s upgrade to a more premium, globalized product assortment creates a temporary headwind, resulting in flat revenue guidance (FY25: -4% to +2% yoy). Simultaneously, 2025 EBITDA margins (guided 6% to 8%) are hampered by ramp-up costs from an accelerated expansion into 10 new countries. Brad anticipates an inflection in 2026, driven by the scaling of these new markets and the continued growth of the high-margin “Westwing Collection” private label, which reached 65% of GMV in Q2 2025.
The long-tenured management team, led by CEO Andreas Hoerning and founder Delia Lachance, is long-term oriented, evidenced by multiple insider purchases. Capital allocation is a key strength. The company executed a tender offer in November 2024 — an unconventional move for a German company — and holds 9.9% of shares in Treasury. This shareholder-friendly approach is expected to continue once technical limitations on share retirement are resolved in 2026.
The shares recently traded at under €12. He sees downside protection at €9-€10, a valuation based on a 4x multiple of 2025 guided EBITDA (approx. €35M) and an 8% FCF yield, supported by a strong balance sheet with ~€50M in net cash. Conversely, Brad calculates an upside potential of ~€45 per share. This target is based on a 2028 scenario assuming a return to double-digit growth and >10% EBITDA margins, applying a 12x EBITDA multiple to ~€69M of EBITDA. This remains below the company’s mid-term aspiration for 15% EBITDA margins.
Disclaimer
European Investing Summit 2025 was held from October 28 to November 3, 2025. The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
Slides
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