Answear.com with dynamic growth in Q1 2021
Answear.com, leading e-commerce fashion retailer in Central and Eastern Europe, achieved very good financial results in the last quarter. Revenues increased year-on-year by 78 percent. to 123,5 million PLN, while EBITDA and net profit amounted respectively to 8 million PLN and 3 million PLN, compared to the loss recorded in the comparable period last year. Dynamic growth in the scale of business is a result of, among others, a constantly expanded range of products, the removal of financial barriers to growth after going public, a wide-ranging marketing campaign and the migration of more and more customers to the online channel.
- We had a very good first quarter, in which we dynamically increased both revenue, operating ratios and profitability. It is an effect of consistently realized strategy of extending the product offer with premium and mid-price brands, as well as strengthening Answear brand awareness through marketing actions. Of course COVID-19 pandemic and accompanying closed stores strengthened the trend of moving to online channel among customers. In our opinion it is not a one-time phenomenon, but a deeper evolution of shopping habits. - comments Krzysztof Bajołek, CEO of Answear.com.
In the first quarter of 2021, Answear.com gross margin increased yoy. All key operational indicators of the business also improved. Number of orders increased by 47% year-on-year to 715 thousand, average net order value rose from PLN 221 to PLN 255, and the share of premium segment in total sales increased by 8 pp to 51%. The product offer was enriched by such brands as Elisabetta Franchi, Tory Burch, Penny Black, Max Mara Leisure, The Kooples, Liviana Conti, Stella McCartney, 4F, Wolford, Samsoe Samsoe, Uvex, or CMP.
An important event in recent months was a broad media campaign which included TV, VOD and YouTube activities. Its aim was to increase brand awareness, attract new customers as well as increase loyalty and return of existing customers. In the last quarter the Company launched also a mobile application on Ukrainian market, it means, that dedicated mobile applications are already available on all markets, on which Answear operates. Answear.ua was also migrated to a new platform, with better UX, speed and improved shopping process. Migration of Polish version to the new platform is planned for the turn of May and June this year.
- Expenditure on marketing activities was one of the issue objectives during our IPO. From the end of December to mid-February 2021, we have been carrying out extensive media activities in the 7 markets in which we operate. The campaign proved to be a great success. The TV campaign reached over 60 million people and the online activities exceeded 132 million impressions. Of course, this had a direct impact on the very good sales results in the past quarter. But we are not stopping there. In mid-March we launched another media campaign, this time in the form of sponsorship billboards, which lasted until mid-May. - adds Krzysztof Bajołek.
Answear.com at the turn of III and IV quarter is planning to enter two new markets, what should be a catalyst for further income growth and dynamic development of the Company.