Answear.com increases online sales by 21 pct. y/y in Q2 2024

Answear.com, a leading e-commerce provider of fashion, home&lifestyle and outdoor products in the CEE region, summarizes its Q2 sales results. Online sales, according to preliminary figures, totaled 344 bn. PLN, up 21 pct. y/y. The company is coming back to its former growth trajectory, and the recorded sales growth is cause for optimism and indicates a gradual rebuilding of consumer strength.

- After a challenging first quarter of this year, we are slowly returning to the former growth trajectory to which we have accustomed our shareholders. According to preliminary data, we produced strong sales figures in the past quarter, achieving a growth rate of 21 pct., a result we consider all the more good given the high base from last year. We also notice that the Polish consumer is getting stronger - comments Krzysztof Bajołek, CEO of Answear.com.

Poland is gradually recovering from the economic slowdown caused by the pandemic, the armed conflict in Ukraine and inflation. Economic growth is beginning to manifest itself in higher wages for Poles. Wage growth is averaging 12.3 pct. in 2024, while growing faster than inflation by 10 p.p., which directly results in an increase in consumer purchasing power.

An additional factor boosting sales was record temperatures in April. In response to the accelerated entry into the summer season, consumer interest in the spring-summer collection naturally increased. As a result, the company closed Q2 under the sign of very good resale of this collection, whose quality, appropriate brand selection and level of stocking allowed us to realize significant increases.

- Our results would have been 9 p.p. higher had it not been for the appreciation of the Polish zloty against the euro and other CEE currencies. In constant currencies, we would have closed the second quarter's online sales with a result 30 pct. higher than last year. As an exporter, nearly 80 pct. of our orders are settled in foreign currencies. Consequently, the value of revenues depends on the exchange rate of the Polish currency - adds Jacek Dziaduś, CFO at Answear.com.

The company pointed out in the current report that the strong sales performance in Q2 will be charged with increased marketing expenses related to the development of the new PRM brand and Answear's repositioning to the premium segment. The period also saw the launch of a PRM and Answear.com concept store at the Norblin Factory in Warsaw. The premises are the first showrooms of this type, which translates into interest among existing as well as new customers. The opening should positively affect awareness and recognition of the brands and effectively support sales in future periods.

- We are pleased with the positive reception and the first weeks of operation of our concept stores. At the same time, we note that it helps us to establish partnerships with selected premium brands that appreciate this type of space. As a result, we are counting on further premiumization of our offer and successive increase of the average order value, which should influence improvement of results in future quarters - says Krzysztof Bajołek, CEO of Answear.com.

Answear.com positively evaluates the relevance and effects of the investments made, which will bring tangible benefits in future quarters. Throughout the first half of 2024, the company has consistently met its strategic objectives, investing heavily in sales support activities, including the Answear.com marketing campaign and the rebranding of the PRM brand. The offer is constantly being expanded with new premium brands, which should increase revenue growth and average order value in the coming quarters.