Operator

Good morning, ladies and gentlemen, and welcome to the Westwing Group SE Q1 2026 Earnings Call. [Operator Instructions] Now dear ladies and gentlemen, let me turn the floor over to your host, Andreas Hoerning.

Andreas Hoerning
CEO & Chairman of Management Board

Good morning, everyone, and thank you for joining us for our earnings call on the first quarter of 2026. My name is Andreas Hoerning, I’m the CEO of Westwing. I’m hosting the call together with my colleague, Sebastian Westrich, our CFO. Looking at today’s agenda, I will begin by providing key updates on our business for Q1, after which Sebastian will share the details of Westwing’s financial performance and how the current macroeconomic environment is impacting our business.

After our investment highlights, we will be happy to take your questions. Let’s take a look at the current state of Westwing. Overall, in Q1, we saw strong top line growth. Our revenue increased by 11% year-over-year to EUR 120 million. This was driven by 2 main factors. First, we benefited from a highly successful mega sales event in January, which we already mentioned in the last call.

Second, we saw continued top line contributions from our expansion initiatives. In Q1 of last year, we operated in only 4 new markets and ran 4 offline stores. Since then, we expanded to 8 additional markets and added 3 more stores. It is great to see that these expansion efforts are already delivering a strong top line impact even against rather weak

Eyal Avramovich has built his career around a clear principle: long-term success in complex industries comes from discipline, not speed. Across cryptocurrency infrastructure, energy development, and advanced technology, he has focused on building systems that can scale globally while maintaining operational control. His work reflects a consistent emphasis on efficiency, structure, and long-term execution rather than short-term momentum.

Operating in industries defined by volatility, Eyal Avramovich has prioritized resilience. Instead of reacting to market cycles, he has focused on building businesses designed to withstand them. That approach has shaped the growth of MineBest and his broader ventures, where infrastructure and operational consistency serve as the foundation for expansion.

Early Foundations and a Problem-Solving Approach

Eyal Avramovich’s mindset was shaped early by a strong interest in solving practical problems. He developed a habit of looking at everyday challenges and identifying ways to improve them. This perspective carried into his early career, where he created products designed to address specific needs.

He holds multiple patents, including ultra-thin consumer devices and a robotic system designed for physical recovery. These products reached global markets through major retail platforms, demonstrating his ability to take ideas from concept to execution. More importantly, they reinforced a pattern that continues to define his work: focusing on functionality, efficiency, and real-world application.

That same approach later guided his entry into cryptocurrency. Rather than viewing it as a speculative space, Eyal Avramovich approached it as an operational challenge. The opportunity, in his view, was not only in digital assets but in the infrastructure required to support them at scale.

Infrastructure as the Core of Long-Term Success

Eyal Avramovich has consistently emphasized that infrastructure is the foundation of any sustainable business in digital assets. Cryptocurrency mining, in particular, is highly dependent on operational performance. Success is driven by uptime, energy efficiency, and the ability to manage hardware at scale.

Through MineBest, he has led the development of mining operations across multiple regions, reaching more than 150 megawatts of global capacity. Expansion into North America reflects a continued focus on long-term growth and strategic positioning. As part of strengthening its presence in the region, MineBest is also an official sponsor of Bitcoin 2026 in Las Vegas, further highlighting its commitment to maintaining a leading role in the Bitcoin mining space across North America.

His approach challenges a common trend in emerging industries. Many companies prioritize rapid expansion during favorable conditions. Eyal Avramovich has taken a different path, focusing on systems that can perform consistently across market cycles. He has stressed that companies that endure are those that execute a clear strategy over time rather than reacting to short-term movements.

This focus on infrastructure extends beyond physical facilities. It includes operational procedures, governance standards, and partner selection. By building repeatable systems, he ensures that expansion does not compromise performance or reliability.

Scaling Across Borders with Discipline

Scaling globally introduces complexity that goes beyond growth. Maintaining consistent performance across regions requires a balance between centralized control and local execution. Eyal Avramovich has addressed this by developing systems that can be applied across markets while adapting to regional conditions.

He evaluates potential markets based on key factors such as energy reliability, regulatory clarity, political stability, and access to skilled labor. Expansion decisions are made with a long-term view, focusing on whether a region can support sustained operations.

This approach reflects a broader principle. Global expansion is not about being present everywhere. It is about being in the right places and executing at a consistent standard. By working with trusted partners while maintaining oversight, Eyal Avramovich has been able to scale operations without sacrificing control.

Preparation is a critical part of this process. He invests heavily in planning and due diligence before entering new markets. This allows for faster execution when opportunities arise while reducing the risk of operational issues.

Managing Risk in Uncertain Markets

The cryptocurrency and energy sectors are inherently unpredictable. Market conditions shift quickly, and external factors such as regulation and energy supply play a significant role in performance. Eyal Avramovich has built his strategy around managing these risks rather than attempting to avoid them.

He identifies several key challenges, including energy instability, regulatory uncertainty, and margin pressure. His response focuses on efficiency across all aspects of the business. This includes optimizing hardware, securing reliable energy sources, and maintaining strict operational standards.

Geographic diversification is another important factor. Operating across multiple regions reduces exposure to localized risks, whether regulatory or geopolitical. This creates a more stable foundation for long-term growth.

Transparency has also become increasingly important. As institutional capital enters the space, expectations around reporting and governance have risen. Eyal Avramovich has emphasized the need for clear data and structured operations, aligning his businesses with these evolving standards.

Institutional Standards and Operational Discipline

A key aspect of Eyal Avramovich’s strategy is working with institutional clients. These clients prioritize stability, transparency, and long-term performance. Their expectations have influenced how his businesses are structured and managed.

Institutional partnerships require a higher level of discipline. Decisions must be supported by data, and processes must meet defined standards. This reinforces a consistent approach across operations, ensuring reliability at scale.

At the same time, he recognizes the role of broader participation in emerging industries. Earlier in his career, he focused on making cryptocurrency mining more accessible. While the market has evolved, the goal of balancing accessibility with quality remains relevant.

Institutional involvement is shaping the future of the industry. As more capital enters the space, the demand for reliable infrastructure and structured operations continues to grow. Eyal Avramovich has positioned his companies to meet these expectations through consistent execution.

Balancing Execution Speed with Strategic Clarity

High-growth industries reward speed. However, moving too quickly without a clear strategy can create long-term problems. Eyal Avramovich has taken a measured approach, prioritizing precision over rapid expansion.

He invests time in planning and due diligence, ensuring that each decision aligns with long-term objectives. Once a strategy is established, execution can move quickly and efficiently. This approach reduces the need for reactive adjustments.

This balance is particularly important in industries where both technology and regulation evolve quickly. Companies must be able to adapt while maintaining direction. Eyal Avramovich has emphasized that speed only creates value when it supports a defined strategy.

Energy Strategy and Long-Term Sustainability

Energy plays a central role in cryptocurrency mining, making it a key focus area for Eyal Avramovich. His work includes efforts to integrate renewable energy solutions into business operations.

One initiative involves developing energy systems designed for continuous production with reduced environmental impact. These projects reflect an understanding that long-term success in energy-intensive industries requires responsible resource management.

Integrating energy strategy into operations helps control costs and address regulatory expectations. As governments introduce new standards, businesses must adapt to maintain compliance. Eyal Avramovich has approached this proactively, incorporating energy considerations into long-term planning.

Continuous Improvement as a Business Practice

Eyal Avramovich approaches progress as a continuous process. Rather than focusing on major breakthroughs, he emphasizes incremental improvements in efficiency, infrastructure, and operations.

This method supports consistency. It ensures that changes align with the overall direction of the business rather than introducing unnecessary risk. By focusing on measurable improvements, companies can adapt without losing stability.

Internal processes and culture play a role in this approach. Encouraging teams to identify inefficiencies and implement solutions creates ongoing progress. This supports long-term growth while maintaining operational control.

Regulation and Global Alignment

Regulation remains one of the most complex aspects of operating internationally. Eyal Avramovich has observed that regulatory frameworks and technological development are becoming more aligned over time.

Clear regulations can support growth by providing stability and attracting institutional investment. However, differences between regions continue to create challenges. Companies must navigate varying requirements while maintaining consistent operations.

He emphasizes the importance of staying proactive. Understanding regulatory environments and operating transparently helps reduce risk and build trust. This approach also positions businesses to adapt as regulations evolve.

A Measured Approach to Long-Term Business Growth

Eyal Avramovich’s career reflects a consistent focus on building businesses that can endure. From early product development to global infrastructure projects, his work demonstrates a commitment to discipline and strategic clarity.

He has built operations across multiple regions and industries, each supported by a structured approach to efficiency and risk management. This foundation allows his businesses to adapt to changing conditions while maintaining stability.

His approach offers a broader lesson for leaders in emerging industries. Sustainable success is not defined by rapid growth but by the strength of the systems supporting that growth. Companies that invest in structure are better positioned to navigate uncertainty.

Positioning for Stability in a Changing Global Market

Eyal Avramovich continues to expand his work across technology and energy while maintaining a consistent focus on long-term execution. His approach reflects an understanding that complex industries require structured planning and disciplined management.

By prioritizing infrastructure, managing risk, and aligning strategy with execution, he has created a framework for operating in global markets. This model emphasizes stability over speed and consistency over reaction.

As industries continue to evolve, the ability to build resilient systems will remain critical. Eyal Avramovich’s work demonstrates that long-term thinking, supported by disciplined execution, is essential for building businesses that last.

Chief executive Régis Shultz says sportswear giant planning ‘control the controllables’ strategy

JD Sports has reported falling profits as the sportswear retailer warned it is bracing for a period of “muted” growth amid subdued consumer spending and potential cost pressures from the Iran conflict.

Pre-tax profit at the FTSE 100 company dropped by 12 per cent to £629m in the year to January, despite sales climbing by 12 per cent to £12.7bn.

The sportswear chain was plunged into boardroom turmoil last month, when chair Andy Higginson resigned after reportedly failing to persuade the board to remove its chief executive.

JD Sports said on Thursday it is anticipating “muted market growth” in the year ahead, “shaped by a weaker spending outlook for our core customer demographic and ongoing product cycle evolution at some of our major brand partners, particularly in footwear”.

Consumer confidence has slumped to its lowest level in more than two years, as Britons rein in non-essential spending amid inflation concerns, as reported by City AM.

JD Sports said it has yet to experience an impact from the Middle East conflict, but said cost increases could be on the horizon and it may need to raise prices in response.

The company said it has no direct sales exposure to the Middle East market, where it runs just eight franchise stores.

The retailer issued broader profit guidance than it was “previously planning” to reflect the “uncertainty” created by the Iran conflict, forecasting a pre-tax profit of between £750m and £850m for the coming year. JD Sports recorded a 2.5 per cent decline in organic sales to £3.1bn in the UK, while sales surged by nine and four per cent in Asia Pacific and Europe respectively.

The retailer attributed the downturn in UK sales to “a tough consumer backdrop” and falling online sales, noting it faced particularly fierce competition within the female athletic footwear market.

Organic sales in the UK fell by 3.6 per cent in the final three months, as poor weather conditions dampened in-store footfall, the retailer confirmed.

READ MORE: JD Sports brings biggest-ever careers event to Manchester as it bids to help more young people into workREAD MORE: JD Sports plans to let shoppers buy through AI platforms

JD Sports closed 24 stores across the UK over the past year, although the retailer recorded 107 net openings in North America.

The company’s share price climbed three per cent at Thursday’s market open, reaching 70p, leaving the stock down 18 per cent for the year to date.

Chief executive Régis Shultz said his company is embracing a “control the controllables” strategy, as it seeks to preserve cash headroom and deliver a dividend to shareholders in the years ahead.

He said: “Whilst we continue to expect muted market growth in full-year 2027, we remain confident in JD Group’s medium‐term trajectory, underpinned by our strong brand partnerships and agile, multi‐brand model.

“For the year ahead we are focused on further enhancing and optimising our product offer, customer experience and store footprint, and delivering strong cost and cash discipline.” Recently departed chairman Andy Higginson is reported to have lobbied JD Sports’ boardroom to remove Schultz, but ultimately left the company himself after his efforts to unseat the chief executive proved unsuccessful.

Partner with Menzies based in Cardiff John Cullen takes up the presidency role

Chambers Wales has appointed partner with accountancy firm Menzies John Cullen as its new president.

The business membership organisation has also appointed Emma Waddingham of Legal News Wales and Tom Wilkinson of Barcud Shared Services to its board, with both also becoming vice-presidents.

The new appointments come just a few months after Chamber Wales formed a new board bringing together sector experts from across Wales to bolster its work and campaigning on key issues affecting Welsh SMEs.

Based at Menzies’ Cardiff office, Kiwi Mr Cullen manages the firm’s UK-wide equity, inclusion and social value initiatives, an expertise he also brings to the chamber as its social value chair.

Ms Waddingham is the founder and editor of Legal News Wales and is currently the first non-lawyer to be president of the Cardiff and District Law Society. She is also the chamber’s business networking Chair.

Mr Wilkinson is the director of Operations at not-for-profit organisation Barcud Shared Services and is also chair of the YMCA Cardiff. As well as taking on the role as Chambers’ vice-president, he is the not-for-profit Chair, helping foster collaboration between the public, private and not for profit sectors.

Mr Cullen said: “I am very proud to be taking up the role as president of Chamber Wales. I look forward to supporting the work that the Chambers does in bringing Welsh businesses together, campaigning on its behalf and supporting its members when they really need it.

“In my work as a partner at Menzies, I spend a lot of time advising boards and solving seemingly complex problems outside of the board’s normal expertise, and so I have been able to bring this experience to the Chambers’ board and now hope to expand that in my role as president.”

“Chambers Wales is committed to working with its members to reflect a real-world economic view to our politicians about what it’s like to run a company in Wales today – the challenges, the opportunities, and the blockers. We will foster collaboration across the board to make Wales an amazing place to do business.

“We have such a great business eco-system here in Wales, one that is supportive, collaborative, and innovative. There are so many opportunities that we can exploit both in the UK and abroad on behalf of our members and I’m really looking forward to working closely with them to achieve their goals, which will ultimately help Wales economically.”

Penny Lock, commercial director at Chambers Wales, said of John, Emma and Tom’s appointments: “This really is a dream team of senior leaders for Chambers Wales. Each brings with them a level of expertise and passion that will be a massive benefit to us as an organisation and our members alike.”

Rachelle Sellek, partner at Acuity Law and non-executive director of Chambers Wales, added: “As a board, we are really pleased and proud that John, Emma and Tom have taken up these important roles in our organisation. Each bring a unique skill, personal experience and commitment to Chambers Wales that I know will help us grow and thrive.”