Answear.com S.A. — Earnings Release 2022

Apr 5, 2022

The Management Board of Answear.com SA (_quot;the Company_quot;) presents thepreliminary selected sales data for the 1st quarter of 2022 togetherwith the comparative figures _#8203;_#8203;for the 1st quarter of 2021:

- in the first quarter, online sales (1) increased by 32% compared tothe same period of 2021, amounting to PLN 166 million (Q1 2021: PLN 126million);

- sales revenue according to IFRS (2) reported for first quarter of 2022amounted to PLN 175 million and increased by 42% compared to the sameperiod of last year (Q1 2021: PLN 123 million).

The difference in dynamics between on-line sales and sales revenueaccording to IFRS reporting results from the fact that in the firstquarter of the current year, the company has credited on-line sales withreturns of goods received during this period but related to salestransactions made in the fourth quarter of 2021. At the same time theimpact of those returns on sales revenue was netted off by the reversalof provision for returns created for that purpose and charged already in2021, thus in line with the date of the sale transaction to which theyrelate to.

Management's comment on the figures:

- The company has started 2022 as planned, with sales increases asexpected in the month of January and the first weeks of February andcontinuation of the positive sales trend from the previous year,enhanced by off-sale period in the fashion industry;

- the military aggression in Ukraine had a significant impact on thesales levels recorded from February 24 this year - as alreadycommunicated all sales activity on the Ukrainian market were suspendedat the first day of the war, moreover the sentiment for purchases onother markets has been negatively influenced by that situation too,especially in the first two weeks of the conflict, which resulted in asignificant drop in the number of orders placed by Answear's customers;

- in March, sales gradually improved, coming back to the levelsoriginally planned before the war at the end of this month, with theexception for the Ukrainian market, being still excluded from shippingactivities;

- sales on the Ukrainian market in the previous year accounted for 17%of the Company's total sales, at the moment the Management Board isclosely monitoring the situation on this market and the Company is readyto relaunch deliveries to our customers in Ukraine in selected regionsof this country, as soon as the situation allows for it.Explanations:

(1) On-line sales means sales invoiced during the period, including alsocredit notes related to returns booked during the period and alsoincluding sales based on commission agreements with suppliers in itsfull price (net value) paid by customer. On-line sales include alsocharges invoiced to customer for shipments below the free deliverythreshold.

(2) Sales revenues according to IFRS accounting standards includerevenues from the sale of goods purchased for its own account as well asrevenues from the sales based on commission agreement expressed asrevenue from commission services being calculated as the differencebetween sales price invoiced to customer and value of merchandise sold.Moreover sales revenue include also commission for running thewww.wearmedicine.com internet site and charges invoiced to customer forshipments 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 forcustomer loyalty program accounted for sales recorded in reported period.

Disclaimer: The Company advises that the sales figures presented arepreliminary and have been calculated in accordance with the bestManagement's knowledge at this stage and may differ from the finalfigures for Q1 2022 which will be published in quarterly report.