Answear.com S.A. — Earnings Release 2021

Jan 5, 2022

The Management Board of Answear.com S.A. (_quot;Company_quot;)informs about preliminary sales data for Q4 2021 and the whole year 2021together 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 (Q42020: PLN 159 million). Online sales for the whole year 2021 amounted toPLN 721 million and increased by 67% compared to 2020, with online salesof PLN 433 million.

- Sales revenue according to IFRS (2) achieved in Q42021 amounted to PLN 256 million and increased by 75% when compared to4Q 2020. Sales revenue for the full year 2021 amounted to PLN 680million and increased by 66% when compared to 2020.

Company's Management comments to the reported figures:

During 4Q 2021 the Company recorded the highest salesduring its history, with the y-on-y growth rate of quarterly onlinesales amounting to 78%._#160;Combinedwith the excellent sales figures for 3Q 2021, the Company achieved thegrowth rate for 2H 2021 of 76%, well above the growth rate achieved inthe first half of the year (being 53%), and despite the high base in theprevious year. The achieved growth exceeded the Company's expectations.Answear.com is currently one of the fastest growing e-commerce platformsin Europe in the fashion industry.

Further strengthening of the positive trend in salesgrowth observed in last quarter results from the following factors:

- New communication strategy targeted to modern andactive woman, looking for inspirations on Answear's websites

- Next wide-range marketing campaign, both televisionand video-online, quickly and effectively reaching out Answears' clientsand supporting the process of building brand awareness. That was alreadya third campaign in 2021 and carried out on all markets on which theCompany operates

- Increase in digital marketing activityeffectiveness and marketing automation in communication process with thecustomer, resulting in an increase of the recorded traffic on thewebsites, increase in the efficiency of transaction finalization and anincrease of conversion rate as well as the average order value

- Increasing number of Answear's markets - three newdestinations: Greece, Croatia and Cyprus - with realised turnover farabove the expectations, effectively supported by wide range TV campaignand large product offer available on Answear.com

- Development of own e-commerce platformfunctionalities, such as e.g. graphic research, allowing to findproducts based on_#160;image/photo,search engine with autocompletion functionality based on artificialintelligence with additional product recommendations, new mechanisms ofcommunication 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 ofthe Company's markets, making the shopping process even more convenientfor our customers, for whom we have prepared several very attractivepromotions, also during Black Friday, which significantly increased theconversion 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 tocustomers for immediate purchase transaction, especially winteraccessories and gifts- Increasedstorage capacity, e.g. by increasing the storage area in the logisticscentre in Kokotów, through thedevelopment of a 4-floor mezzanine

- An efficient logistics process, fully controlled bythe Company and being continuously optimized, resulting in the bestservice offered to the client in terms of fast delivery and convenience

- Very well received Answear_LAB own brand newcollections - such as e.g. Future is Female! emphasizing strength andcourageous nature of women. Own brand collections distinguish Answearfrom the competition and attract women to the Answear.com online shopsExplanations:

(1) On-line sales means sales invoiced during theperiod, including also credit notes related to returns booked during theperiod and also including sales 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 forcustomer loyalty program accounted for sales recorded in reported period.

Disclaimer: The Company advises that the salesfigures presented are preliminary and have been calculated in accordancewith the best Management's knowledge at this stage and may differ fromthe final figures for Q4 2021 and whole 2021, which will be published inyear-end report.