Answear.com S.A. — Earnings Release 2023

Oct 3, 2023

TheManagement Board of Answear.com SA (the _quot;Company_quot;) informs aboutpreliminary selected sales data for Q3 2023 and 9 months 2023, togetherwith comparative figures for Q3 2022 and 9 months 2022.

Preliminarysales figures for Q3 2023 and 9 months 2023:

- In Q32023, online sales (1) increased by 13.5% compared to the same period of2022, amounting to PLN 276.3 million (Q3 2022: PLN 243.5 million).Online sales for 9 months 2023 amounted to PLN 827.0 million andincreased by 36.2% when compared to 9 months 2022, with online sales ofPLN 607.2 million recorded in that period;

- Salesrevenue calculated in accordance with IFRS (2) for third quarter of 2023amounted to PLN 272.6 million and increased by 16.7% when compared to Q32022 (PLN 233.5 million). Sales revenue for the nine months of 2023amounted to PLN 827.0 million and increased by 36.1% when compared to 9months 2022 sales revenue of PLN 609.2 million.

Company'sManagement commentary to the reported figures:

-the difficult macroeconomic conditions recorded in retail salesindicators caused that the market environment for the fashion industryis very challenging, and the slowdown and weakening consumer demand, thefirst signs of which the Company had already seen in the last weeks ofJune, were experienced throughout the whole third quarter of this year.

-In H1 2023, Answear has recorded sales revenues above its plans, and asa consequence the sell-out period were started with a well-sold SS23collection and consequently low stock levels. Less pressure to sellbelow target margins meant that the Company did not engage itself in theaggressive price war which took place during the period, due to theactivity of its direct competitors;

-the Omnibus regulations introduced by the Company in accordance withcurrent legislation have resulted in fact that the price promotions noware being perceived by customers as less attractive. Online sales isbased on_#160;gradualand several price reductions during the season, while the informationresulting from the omnibus directive about the percentage reduction ofthe current promotional price of a product in relation to the lastlowest price within a 30-day period is not that strong motivator to makea purchase decision as the previously used information about thediscount in relation to the so-called _quot;first price_quot;;

-_#160;muchlonger summer period and exceptionally warm September, both in Polandand in other countries where Answear operates, resulted in salesregistered significantly below the assumed targets: customers in thatmonth are no longer interested in buying summer collections, and theneed for purchase the autumn collection has been postponed;

-the PRM brand, which expands the Company's offer towards the luxurystreetwear _amp; fashion segment, met its assumed budgets, except for themonth of September, when lower demand was influenced by weatherconditions;

-it is also worth to notice that the base of Q3 2022 is now moredemanding and consequently lower dynamics growth in Q3 2023 was achievedwhen compared to the y-on-y dynamics recorded in the previous quartersof this year;

Asper the opinion of the Management Board, sales performance below theplans will have an impact on the Company's profitability in this period.Despite this fact and all the factors described above, the ManagementBoard of Answear.com SA indicates that the Company achieved positivesales growth dynamics in Q3 2023, and the dynamics recorded cumulativelyin the 9 months of 2023 means that Answear.com SA remains on theposition of one of the leaders in the fashion e-commerce industry.Explanations:(1)On-line sales means sales invoiced during the period, including alsocredit notes related to returns received and booked during the periodand also including sales based on commission agreements with suppliersin its full price (net value) paid by customer. On-line sales includealso charges invoiced to customers for shipments below the free deliverythreshold.

(2) Salesrevenues according to IFRS accounting standards include revenues fromthe sale of goods purchased for its own account as well as revenues fromthe sales based on commission agreement expressed as revenue fromcommission services being calculated as the difference between salesprice invoiced to customer and value of merchandise sold.Salesrevenue include also commission for runningwww.wearmedicine.cominternetsite and charges invoiced to customer for shipments below the freedelivery threshold.Sales revenue figure is also adjustedby the value of provisions for the returns corresponding to salestransactions 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 are preliminary andhave been calculated in accordance with the best Management's knowledgeat this stage and may differ from the final figures for 3Q 2023 and 9months 2023, which will be published in quarterly report.