Preliminary selected sales figures for Answear.com SA for Q2 2022 and H1 2022

The Management Board of Answear.com SA ("the Company") presents the preliminary selected sales data for Q2 2022 and H1 2022, together with comparative figures for Q2 2021 and H1 2021.

Preliminary sales figures for Q2 2022 and H1 2022:

- In Q2 2022, online sales (1) increased by 30% compared to the same period in 2021, amounting to PLN 198 million (Q2 2021: PLN 152 million). Online sales for H1 2022 amounted to PLN 364 million and increased by 31% compared to H1 2021, when online sales of PLN 278 million has been recorded.

- Sales revenue according to IFRS (2) reported for Q2 2022 amounted to PLN 196 million achieving a 2Q2022 / 2Q2021 dynamic equivalent to 34% (Q2 2021 revenues: PLN 146 million). Sales revenue for H1 2022 amounted to PLN 374 million and increased by 39% compared to H1 2021 sales revenue being PLN 270 million.

Management's commentary on the figures:

- The second quarter was characterised by strong sales of the summer collection, which was complemented by sales of the new product category 'Home&Lifestyle'. Consistently during the period, the Company broadened and deepened its offering especially in the premium brand segment, while its own brand answear.LAB presented a new collection "Be Brave", inspired by strong and courageous women known from the world of pop culture and art;

- market sentiment, heavily influenced in the first quarter by the events in Ukraine, gradually recovered, delivering solid sales growth rates;

- in May, the Management decided to restart deliveries to customers on the Ukrainian market (see also current report no. 10/2022 dated 16 May 2022). Following the restart of the operations on this market, the Company recorded positive online sales growth in the period of two months (May and June) compared to the same two-month period last year;

- in June , the Company opened new, 11th market - Slovenia - being the country with a high per capita income ratio and a high awareness of premium brands as well as having potential for further optimisation of Answear.com's logistics service for the Balkan region;

- the Company continued to improve its operational efficiency in the second quarter - improvement in operational and financial indicators, combined with the sales dynamics should - according to the Management Board opinion - end up with good profitability to be reported in that period.

Explanatory notes:

(1) On-line sales means sales invoiced during the period, including also credit notes related to returns received and 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 customers for shipments below the free delivery threshold.

(2) Sales revenues according to IFRS accounting standards include revenues from the sale of goods purchased for its own account as well as revenues from the sales based on commission agreement expressed as revenue from commission services being calculated as the difference between sales price invoiced to customer and value of merchandise sold. Moreover sales revenue include also commission for running the www.wearmedicine.com internet site 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 Q2 2022 and H1 2022 which will be published in quarterly report.