Answear.com increased EBITDA more than threefold in Q1 2025

Answear.com, one of the leaders in premium & high-end fashion in Central Europe, summarises its financial results for Q1 2025. During this period, the Company significantly improved its profitability and continued its return to revenue growth trajectory, maintaining its position as one of the fastest-growing fashion e-commerce businesses in Europe. Revenue increased to PLN 353 million, representing a growth of 22% year-on-year. Gross margin increased by 24% year-on-year to PLN 140 million. Meanwhile, EBITDA increased by 230% year-on-year, reaching PLN 10 million

- We are satisfied with the results for the first quarter of 2025. The EBITDA growth shows that consistent work on improving profitability and cost optimization is bringing measurable effects. Equally important, we haven't forgotten about revenue growth – we have returned to a sustainable development trajectory. Our results show that the premiumization strategy is working, and we are effectively staying ahead of the competition. In the coming quarters, we intend to continue this direction, believing that the effects of our actions will be even more visible in our results.
- comments Krzysztof Bajołek, CEO of Answear.com.

In Q1 2025, sales revenue dynamics amounted to 22.2% year-on-year, exceeding the result for the entire 2024 and approaching the very strong sales of Q4 2024. Thanks to dynamic growth, Answear.com strengthens its position as the fastest-growing fashion e-commerce company in Europe.

In Q1 2025, the company's profitability also improved significantly. This resulted from the rationalisation of marketing expenses, which, after a period of significant investments last year, were necessary for the effective business transformation towards the premium segment, were adjusted to the current development phase. In the coming periods, Answear.com plans to maintain cost discipline in the marketing area. In terms of costs, the logistics cost indicator also decreased – from 14.0% to 13.3% – despite the increase in the minimum wage from January 1. This is the effect of the strategy of premiumizing the offer, increasing the average order value while limiting the number of items in the basket, which positively impacts operational costs. As a result of these actions, Answear.com's EBITDA increased more than 3-fold to PLN 10 million. The gross margin was 39.6%, recording an increase of 0.8 percentage points year-on-year.

- Everything indicates that we are on the right track to achieving our goals. The first quarter was successful for us, although it's worth remembering that this is traditionally a quiet period in our industry, dominated by sales. We are optimistically observing the second quarter, which is seasonally one of the strongest – it benefits from good sales of sneakers and the new spring-summer collection -  says Jacek Dziaduś, CFO of Answear.com.

In the past quarter, PRM also recorded very good results – revenues increased by 57% year-on-year, and EBITDA reached a positive level of PLN 0.9 million. This is the result of consistent work on improving the offer and effective optimization of marketing activities. Traffic in the PRM concept store significantly increased, and sales results exceeded the planned targets.

In the past quarter, the following brands, among others, joined the Answear.com and PRM offer: RHODE, ERMANNO SCERVINO, FARM RIO, MISSONI, ISABELLE BLANCHE, RAG & BONE. In the following seasons, we are going to add to our offer brands such as Off-White, Max Mara, and Autry.