Shares in Westwing Group have surged following the company’s announcement of its third consecutive profitable quarter. The online furniture retailer expects its revenue and adjusted earnings for the year to be at the higher end of its guidance.
At 0935 GMT, shares were up 5% at EUR8.75.
During the second quarter, Westwing Group achieved adjusted earnings before interest, taxes, depreciation, and amortization of 4.4 million euros ($4.8 million), a significant improvement from the EUR2.3 million loss during the same period last year.
The company also reduced its operating loss from EUR7.6 million to EUR1.9 million compared to the previous year.
Although revenue dropped to EUR101.8 million from EUR103 million, Westwing Group attributed it to a challenging market environment.
The company’s drive towards profitability in the second quarter was fueled by effective cost-saving measures implemented last year.
Westwing Group anticipates a return to growth in the second half of the year and aims to achieve revenue and adjusted EBITDA in line with its full-year guidance. The estimated revenue range is between EUR390 million and EUR440 million, with adjusted EBITDA expected to be between EUR4 million and EUR13 million, accompanied by a margin of 1% to 3%.