Preliminary selected sales figures for SA for Q1 2023.

Title: Preliminary selected sales figures for SA for Q1 2023.
Date: 05.04.2023.
Report number: Current report no. 9/2023
Legal basis

Article 17(1) MAR - confidential information.

The Management Board of SA (the "Company") announces preliminary selected sales figures of the Company for the first quarter of 2023 together with comparative figures for the first quarter of 2022.

- sales revenue according to IFRS (1) reporting in Q1 2023 amounted to PLN 271 million achieving 1Q2023 / 1Q2022 dynamics of 52% (Q1 2022: PLN 178 million).

- In Q1 2023, online sales (2) increased by 62% compared to the same period in 2022, reaching PLN 268 million (Q1 2022: PLN 166 million).

Company Management's commentary on the figures:

Despite the challenging macroeconomic conditions, continues its strong sales revenue growth, maintaining its position as one of the fastest growing e-commerce platforms in Europe in the fashion industry. The achievement of such good sales results is the result of consistent implementation of the strategy and the use of the built-up potential of the company currently operating in 11 markets of the region.

The company flexibly and reactively manages marketing budgets, reinforcing sales on markets, where it observes the highest effectiveness of implemented campaigns, to the benefit of global sales growth and the company's results. At the same time Answear achieves positive sales dynamics in all countries, in which it has e-shops, continuing with the goal of building the leader in fashion e-commerce in the CEE region.

Answear also continues to build brand awareness through broad-based TV and video-online campaigns, the first instalment of which was planned for this year, in January-February, in all markets. In addition, a well-utilised sales period and optimised planning of purchasing budgets allowed for accelerated inventory turnover and margin optimisation.

The high sales dynamics of 1Q2023 vs 1Q2022 were influenced by the lower base of the first quarter of last year, in which Answear stopped sales in this market on the day the war against Ukraine broke out. However, it is worth noting that in the previous year, despite the very difficult situation, SA's sales revenue growth in 1Q2022 vs 1Q2021 was 44%.


The difference in the online sales and IFRS reporting sales dynamics is due to the fact that the Company recorded fewer returns from the previous period, as most of the returns relating to December 2022 sales had already been delivered to the warehouse and booked as a reduction of online sales in 4Q2022. In the comparative period 1Q2022, a much higher volume of goods returns received in that period was booked, which related to sales made in 4Q2021. The capitalisation of these returns reduced online sales in 1Q2022, while their impact on sales revenue was offset by the use of the provision made for this purpose in 2021, according to the date of the sales transaction to which the return relates.

(1) Sales revenue according to IFRS reporting includes revenue from the sale of goods purchased on own account and revenue from the sale of services, i.e. mainly commissions from commission sales, commissions from the shop and customer charges for transporting shipments below the free delivery threshold. Sales revenue also includes the value of provisions for expected returns in the following period relating to sales from the reported period and the value of the provision for the customer loyalty programme.

(2) Online sales include fiscalized sales in the period, including fiscalized, i.e. customer made and accepted returns in the period, as well as sales made on a commission basis expressed in full value (net sales price to the customer) and customer charges for transporting shipments with a value below the free delivery threshold;

Disclaimer: The Company advises that the sales figures presented are preliminary and have been calculated to the best of Management's current knowledge and may differ from the final figures for Q1 2023, which will be known once the accounts have been fully closed.