Answear.com S.A. — Earnings Release 2021

Oct 5, 2021

The Management Board of Answear.com S.A. ("Company")informs about preliminary sales data of the Company for Q3 2021 and 9months 2021 together with comparative figures for Q3 2020 and 9 months2020.Preliminary sales figures for the third quarter of 2021 and 9months of 2021:

- In Q3 2021, online sales (1) increased by 73%compared to the same period of 2020, amounting to PLN 161 million (Q32020: PLN 93 million). Online sales for the 9 months of 2021 amounted toPLN 439 million and increased by 60% compared to the period of 9 monthsof 2020, with online sales of PLN 274 million.

- Sales revenue according to IFRS (2) achieved inthird quarter of 2021 amounted to PLN 155 million and increased by 72%when compared to prior year (Q3 2020: PLN 90 million). Sales revenuesfor 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 263million.Company's Management comments onreported figures:

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

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

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

- Effective and efficient marketing activities aimedat strengthening the brand on all markets and resulting in an increaseof conversion rate and average basket value;

- Further expansion on international marketsincreasing the number of markets on which Answear operates - two newdestinations, i.e. Greece and Croatia, with potential for further growthin next periods;

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

- Continuous development of warehouse capacity andoperational efficiency through expansion of the warehouse space at thelogistics centre in Kokotów;

- Further development of own brand - new specialcollection Answear.LAB called "Girl Power" offered for sale in the thirdquarter, distinguishing Answear against competition and attracting womento Answear.com on-line shop.

Explanations:

(1) On-line sales means sales invoiced during theperiod, including also credit notes related to returns booked during theperiod and also including sale based on commission agreements withsuppliers in its full price (net value) paid by customer. On-line salesinclude also charges invoiced to customer for shipments below the freedelivery threshold.

(2) Sales revenues according to IFRS accountingstandards include revenues from the sale of goods purchased for ownaccount as well as revenues from the sale based on commission agreementexpressed as revenue from commission services being calculated as thedifference between sale price invoiced to customer and value ofmerchandise sold. Moreover sales revenue include also commission forrunning the www.wearmedicine.com store and charges invoiced to customerfor shipments below the free delivery threshold. Sales revenues are alsoadjusted by the value of provisions for the returns corresponding tosales transactions executed during reported period but expected to beprocessed in the next period. Moreover it also includes provision for acustomer loyalty program accounted for sales recorded in reported period.

Disclaimer: The Company advises that the salesfigures presented are preliminary and have been calculated to the bestof Management's knowledge at this stage and may differ from the finalfigures for Q3 2021 and 9 months 2021, which will be published in 3Q2021 report.