Preliminary selected sales data of Answear.com S.A. for Q3 2021 and 9 months 2021.

The Management Board of Answear.com S.A. ("Company") informs about preliminary sales data of the Company for Q3 2021 and 9 months 2021 together with comparative figures for Q3 2020 and 9 months 2020.Preliminary sales figures for the third quarter of 2021 and 9 months of 2021:

- In Q3 2021, online sales (1) increased by 73% compared to the same period of 2020, amounting to PLN 161 million (Q3 2020: PLN 93 million). Online sales for the 9 months of 2021 amounted to PLN 439 million and increased by 60% compared to the period of 9 months of 2020, with online sales of PLN 274 million.

- Sales revenue according to IFRS (2) achieved in third quarter of 2021 amounted to PLN 155 million and increased by 72% when compared to prior year (Q3 2020: PLN 90 million). Sales revenues for 9 months of 2021 amounted to PLN 424 million and increased by 61% compared to 9 months of 2020, with sales revenues amounting to PLN 263 million.

 

Company's Management comments on reported figures:

During the third quarter of 2021 the Company continues to follow a positive sales growth trend observed in the Company throughout the whole 2021. The achieved y-o-y dynamics on quarterly online sales of 73% resulted from:

- Dynamically growing product offering, introduction of many new brands, especially in the premium segment;

- Significant improvement of stock level, increasing the width of the offer and the depth of stock offered to customers for immediate purchase transactions, building an attractive and competitive proposition for Answear's clients during the summer sales period;

- Effective and efficient marketing activities aimed at strengthening the brand on all markets and resulting in an increase of conversion rate and average basket value;

- Further expansion on international markets increasing the number of markets on which Answear operates - two new destinations, i.e. Greece and Croatia, with potential for further growth in next periods;

- Further development of own e-commerce platform and mobile application implemented on all markets of the Company, and consequently - an improvement of customer shopping experience;

- Continuous development of warehouse capacity and operational efficiency through expansion of the warehouse space at the logistics centre in Kokotów;

- Further development of own brand - new special collection Answear.LAB called "Girl Power" offered for sale in the third quarter, distinguishing Answear against competition and attracting women to Answear.com on-line shop.

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 sale 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 a 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 to the best of Management's knowledge at this stage and may differ from the final figures for Q3 2021 and 9 months 2021, which will be published in 3Q 2021 report.