Preliminary selected sales figures of Answear.com S.A. for Q4 2021 and 12 months of 2021.
The Management Board of Answear.com S.A. informs about preliminary sales data for Q4 2021 and the whole year 2021 together with comparative figures for Q4 2020 and the year 2020.
Preliminary sales figures for Q4 2021 and 2021:
- In Q4 2021, online sales (1) increased by 78% compared to the same period of 2020, amounting to PLN 282 million (Q4 2020: PLN 159 million). Online sales for the whole year 2021 amounted to PLN 721 million and increased by 67% compared to 2020, with online sales of PLN 433 million.
- Sales revenue according to IFRS (2) achieved in Q4 2021 amounted to PLN 256 million and increased by 75% when compared to 4Q 2020. Sales revenue for the full year 2021 amounted to PLN 680 million and increased by 66% when compared to 2020.
Company's Management comments to the reported figures:
During 4Q 2021 the Company recorded the highest sales during its history, with the y-on-y growth rate of quarterly online sales amounting to 78%. Combined with the excellent sales figures for 3Q 2021, the Company achieved the growth rate for 2H 2021 of 76%, well above the growth rate achieved in the first half of the year (being 53%), and despite the high base in the previous year. The achieved growth exceeded the Company's expectations. Answear.com is currently one of the fastest growing e-commerce platforms in Europe in the fashion industry.
Further strengthening of the positive trend in sales growth observed in last quarter results from the following factors:
- New communication strategy targeted to modern and active woman, looking for inspirations on Answear's websites
- Next wide-range marketing campaign, both television and video-online, quickly and effectively reaching out Answears' clients and supporting the process of building brand awareness. That was already a third campaign in 2021 and carried out on all markets on which the Company operates
- Increase in digital marketing activity effectiveness and marketing automation in communication process with the customer, resulting in an increase of the recorded traffic on the websites, increase in the efficiency of transaction finalization and an increase of conversion rate as well as the average order value
- Increasing number of Answear's markets - three new destinations: Greece, Croatia and Cyprus - with realised turnover far above the expectations, effectively supported by wide range TV campaign and large product offer available on Answear.com
- Development of own e-commerce platform functionalities, such as e.g. graphic research, allowing to find products based on_#160; image/photo, search engine with autocompletion functionality based on artificial intelligence with additional product recommendations, new mechanisms of communication promotion, further optimisation in UX area, such as e.g. new product page or check-out function in mobile application
- Implementation of the mobile application on all of the Company's markets, making the shopping process even more convenient for our customers, for whom we have prepared several very attractive promotions, also during Black Friday, which significantly increased the conversion rate
- Dynamically expanding wide range of products, introduction of many new brands, especially in the premium segment
- Further optimisation and improvement of stock, increasing the width of the offer and the depth of the stock offered to customers for immediate purchase transaction, especially winter accessories and gifts
- Increased storage capacity, e.g. by increasing the storage area in the logistics centre in Kokotów, through the development of a 4-floor mezzanine
- An efficient logistics process, fully controlled by the Company and being continuously optimized, resulting in the best service offered to the client in terms of fast delivery and convenience
- Very well received Answear_LAB own brand new collections - such as e.g. Future is Female! emphasizing strength and courageous nature of women. Own brand collections distinguish Answear from the competition and attract women to the Answear.com online shops
Explanations:
(1) On-line sales means sales invoiced during the period, including also credit notes related to returns booked during the period and also including sales based on commission agreements with suppliers in its full price (net value) paid by customer. On-line sales include also charges invoiced to customer for shipments below the free delivery threshold.
(2) Sales revenues according to IFRS accounting standards include revenues from the sale of goods purchased for own account as well as revenues from the sale based on commission agreement expressed as revenue from commission services being calculated as the difference between sale price invoiced to customer and value of merchandise sold. Moreover sales revenue include also commission for running the www.wearmedicine.com store and charges invoiced to customer for shipments below the free delivery threshold. Sales revenues are also adjusted by the value of provisions for the returns corresponding to sales transactions executed during reported period but expected to be processed in the next period. Moreover it also includes provision for customer loyalty program accounted for sales recorded in reported period.
Disclaimer: The Company advises that the sales figures presented are preliminary and have been calculated in accordance with the best Management's knowledge at this stage and may differ from the final figures for Q4 2021 and whole 2021, which will be published in year-end report.