
– After a demanding first quarter of this year, we are slowly returning to the old growth trajectory that we have accustomed our shareholders to. According to preliminary data, in the last quarter we generated strong sales data, achieving a growth rate of 21%. We consider this result to be even more good considering the high base from last year. We also notice that the Polish consumer is getting stronger – comments Krzysztof Bajołek, president of the management board of Answear.com.
Poland is gradually emerging from the economic slowdown caused by the pandemic, the armed conflict in Ukraine and inflation. Economic growth is starting to show itself in higher earnings of Poles. Wage growth in 2024 is on average 12.3%, growing faster than inflation by 10 pp, which directly translates into an increase in consumers' purchasing power.
An additional factor strengthening sales were record temperatures in April. In response to the accelerated entry into the summer season, consumer interest in the spring-summer collection naturally increased. As a result, the company closed the second quarter with very good resale of this collection and significant growth.
– Our results would be 9 percentage points higher if it were not for the appreciation of the Polish zloty against the euro and other CEE currencies. In constant currencies, we would close online sales in the second quarter with a result of 30%. higher than last year. As an exporter, nearly 80 percent We process orders in foreign currencies. As a result, the value of revenues depends on the exchange rate of the Polish currency – adds Jacek Dziaduś, Vice-President of the Management Board for Finance of Answear.com.
The company noted in the current report that good sales results in the second quarter of this year will be burdened with increased marketing expenditure related to the development of the new PRM brand and the repositioning of Answear to the premium segment. At that time, the PRM and Answear.com concept stores were also launched in the Norblin Factory in Warsaw. The premises are the first showrooms of this type, which translates into interest among current and new customers. The opening should have a positive impact on brand awareness and recognition and effectively support sales in future periods.
– We are pleased with the positive reception and the first weeks of operation of our concept stores. At the same time, we note that it helps us establish cooperation with selected premium brands that appreciate this type of space. As a result, we count on further premiumization of our offer and a gradual increase in the average order value, which should improve results in the coming quarters, says Krzysztof Bajołek.
Answear.com positively assesses the accuracy and effects of the investments made, which will bring tangible benefits in the coming quarters. Throughout the first half of 2024, the company invested in sales support activities, including the Answear.com marketing campaign and the rebranding of the PRM brand. The offer is constantly expanded to include new premium brands, which should increase the dynamics of revenue growth and average order value in the coming quarters.