We feel now is a pretty good time to analyse Westwing Group SE's (ETR:WEW) business as it appears the company may be on the cusp of a considerable accomplishment. Westwing Group SE, together with its subsidiaries, engages in the home and living e-commerce retail. The €147m market-cap company announced a latest loss of €5.0m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Westwing Group will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Westwing Group is bordering on breakeven, according to the 3 German Specialty Retail analysts. They expect the company to post a final loss in 2024, before turning a profit of €2.2m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Westwing Group's growth isn’t the focus of this broad overview, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Westwing Group

Before we wrap up, there’s one aspect worth mentioning. Westwing Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Westwing Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Westwing Group's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Valuation: What is Westwing Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Westwing Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Westwing Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.