Answear.com S.A. — Earnings Release 2022

Jan 5, 2023

TheManagement Board of Answear.com S.A. informs about preliminary salesdata for Q4 2022 and the whole year 2022 together with comparativefigures for Q4 2021 and the whole year 2021.

Preliminarysales figures for Q4 2022 and the whole year 2022:

-In Q4 2022, online sales (1) increased by 33% compared to the sameperiod of 2021, amounting to PLN 375 million (Q4 2021: PLN 282 million).Online sales for 12 months of 2022 amounted to PLN 982 million andincreased by 36% when compared to 12 months of 2021, with online salesof PLN 721 million recorded in that period.

-Sales revenue calculated in accordance with IFRS (2) for Q4 2022amounted to PLN 359 million and increased by 39% when compared to 4Q2021. Sales revenue for the full year 2022 amounted to PLN 969 millionand increased by 42% compared to 12 months of 2021, when sales revenuesamounted to PLN 683 million.

Company'sManagement comments to the reported figures:

During4Q 2022 the Company recorded the highest sales during its history, withthe y-on-y growth rate of quarterly online sales amounting to 33%.Combinedwith very good results in Q3 2022, the Company has achieved an increaseof 40% in the second half of the year 2022 being above the dynamicsachieved in the first half of the year (being 31%), and all this despitea very high base in the previous year, especially in the fourth quarter.Answear.com is currently one of the fastest growing e-commerce platformsin Europe in the fashion industry, successfully achieving strategicgoals and continuing of dynamic growth, despite the more difficultmacroeconomic conditions observed in 2022.

Theachievement of such good sales results in the fourth quarter, as well asthroughout the whole 2022, is the result of the consistentimplementation of the company's strategy and its execution efficiencyresulting in - among others:

-optimal level of stock purchased for the season autumn-winter 2022collection and effective management of stock, accurately responding tothe needs of the consumer on each of the individual markets of theregion;

-development of the offer in new categories, premium, sport/outdoor, andhome _amp; lifestyle, which is very popular especially in the Christmasperiod among customers looking for inspiring gifts;

-very good results of geographical expansion carried out at the end of2021 and in H1 2022 - new markets are currently generating sales abovethe assumed plans;

-effective marketing activities, including TV advertising campaigns,which supported the process of building brand awareness and effectivelysupported sales in the most important period for online businesses, i.e.Black Friday / Black Week and the Christmas;

-despite the difficult geopolitical situation - effective salesactivities on the Ukrainian market;

-technological and operational improvements allowing to maintain theshortest possible delivery times, despite increased order volumes,resulting in a high degree of customer satisfaction.

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)Sales revenues according to IFRS accounting standards include revenuesfrom the sale of goods purchased for its own account as well as revenuesfrom the 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. Sales revenueinclude also commission for running the_#160;www.wearmedicine.com_#160;internetsite and charges invoiced to customer for shipments below the freedelivery threshold. Sales revenue figure is also adjusted by the valueof provisions for the returns corresponding to sales transactionsexecuted during reported period but expected to be processed in the nextperiod. Moreover, it also includes provision for customer loyaltyprogram 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 Q4 2022 andwhole 2022, which will be published in year-end report.