Okay, we're ready to begin. Good morning, everyone. Janusz Maraszewski, Investor Zone. It's Tuesday, May 12th, 2026. It's past 12:30 PM. I'm delighted to welcome you to a meeting with the management board of Answear.com. Mr. Krzysztof Bajołek, CEO of the company, is already with me. Good morning. Good morning. Mr. Jacek Dziaduś, Vice President of the Management Board for Financial Affairs. Good morning. Good morning. As usual, a word of introduction. Answear.com is a Polish e-commerce platform operating in 12 European markets. Its offer includes a wide selection of clothing, shoes, and accessories from over 800 global brands, primarily premium brands. The company has just published its financial results for the first quarter of 2026, and today's meeting will be dedicated to these results and its growth prospects. Our guests will, of course, discuss the details. I'll just remind you that this meeting will be divided into two parts, a presentation and a question and answer session. I invite you to listen to the presentation and encourage you to ask questions during it, both in the conference room and on social media, on YouTube, Facebook, X, or LinkedIn, wherever you're watching us. Now, without taking up any more of your time, I'll give the floor to our guests. Gentlemen, the stage is yours. Please share what we achieved in the first quarter of 2026. Welcome back, let's summarize the results for the first quarter of this year. Revenue increased by 7.4% to PLN 370.87 million. Gross sales margin increased by 8%, which is more than revenue, meaning we also improved our sales margin, which we're extremely pleased about. It's only by four percentage points, it could even be as much as four percentage points. This is especially true since this margin has been growing for several consecutive quarters. This is encouraging because we can see that the premiumization of our offerings and the optimization of inventory are yielding positive results, and we're definitely able to add some to this percentage margin in the coming quarters. This will be our goal. Unfortunately, EBITDA fell by a third year-on-year, from PLN 9.9 million to PLN 6.6 million. We'll discuss the reasons for this decline shortly. The average basket value increased by 1.8% year-on-year to PLN 394. Logistics costs increased by six percentage points to 13.8% of revenue. This is one of the reasons why profitability in this first quarter is lower year-on-year. These logistics costs increased primarily due to rising fuel prices. Many contracts include fuel surcharges. If oil prices rise above or below a certain level, additional fuel surcharges kick in, and they simply kicked in this quarter. Labor costs also increased slightly. The raises we gave last year, but which weren't yet effective in the first quarter of last year, are calculated here and were included in the logistics costs for the first quarter. They'll probably be absorbed into higher sales in future quarters, but considering that the first quarter is the weakest in terms of sales, it's clear that these raises simply weigh a bit more heavily. Hence the increase in logistics costs, not so much by 60 percentage points, but still a second point, an increase in marketing costs to 19.6% by 0.8 percentage points. I know you'll say here, "Well, these logistics costs were supposed to decrease this year." Well, we do assume they will be significantly lower throughout the year. They will definitely be slightly lower than last year. However, in the first quarter, because firstly, we're planning the distribution of marketing costs across the quarters a bit differently this year. We're assuming a flatter distribution than last year, as you may remember. We had such a spike in marketing costs in the fourth quarter of this year due to the TV campaign. We're not planning a TV campaign this year. We'll be primarily active in digital. This means we simply need to spread these costs more evenly across the quarters because that's the nature of these media. That's one reason. Second, since we launched a large TV campaign in the last quarter of last year, we now need to conduct follow-up activities so as not to lose all the users we reached with the TV campaign's message. We need to try to bring them lower in our conversion funnel. As you can see here on the right side of the screen, we're reporting a 16% year-over-year increase in visits. This is the result of last year's TV campaign and this year's digital efforts aimed at bringing these users to our website and then converting them. It was rational to increase these expenses, even slightly, in the first quarter, so as not to lose the effects of the TV campaign we ran last year. The third reason for the worse result in the first quarter is that there are markets that have simply been performing weaker recently, such as Ukraine, Romania, Hungary, and Slovakia. These are markets that, for various reasons, external and beyond our control, are performing weaker, and it's difficult to achieve better results in such markets. Fortunately, we have markets that are performing very well, where the external situation is stable, such as Poland, where the Polish market grew by 21% in the first quarter. It's clear that where it's stable, we can achieve results. However, where there's war, as in Ukraine, or more stringent austerity, as in Romania, or sociopolitical uncertainty, as in Slovakia or Hungary, the results and consumer sentiment are simply worse, and so are our results. Regardless, we remain one of the fastest-growing fashion e-commerce companies in Europe. In fact, we haven't found another company of similar scale growing in this sector as fast as Answear, which we're extremely pleased about, as this will likely lead to better results sooner or later. Importantly, we're growing steadily, month after month, so to speak. Of course, there are individual months that are weaker. That's what happened this year with January and February. They were weaker because, firstly, there were deep sales from competitors, and secondly, we were already heavily outsold from our winter inventory. Seeing weaker sales last year in the fourth quarter, we simply stopped reordering and cut back on purchases, which meant we simply had less of this product on sale. The good news is that we're entering the new year with a better inventory structure, and in subsequent quarters, there will simply be more fresh goods and less old ones. This should result in further improvement in the percentage margin on sales, as well as improved inventory turnover, which we'll also see reflected in other indicators, which are happening. Looking at these results from the first quarter, we see a 7% increase year-on-year. Note that this is better than the last quarter of last year, meaning we're returning to higher sales dynamics, and it seems we're on track to improve these dynamics in future quarters. Especially improving profitability. It seems that the weakest quarter of this year is behind us, and each subsequent quarter should be better in terms of sales dynamics and especially profitability. These sales results, with a growth rate in the reporting currency of over 7%, place us among the industry's leading companies in terms of sales revenue growth in the first quarter. We see that 10%, raport [Non-English content], was reported by LPP, raport [Non-English content], and these are data, raport [Non-English content], firstly from the omnichannel entity, and secondly, raport [Non-English content], reported in constant currencies, meaning without the impact of exchange rate changes. This 10% was actually driven by expansion and new store openings. Meanwhile, LPP reported a 2.8 percentage point decline in like-for-like sales. Zalando, without the merger with eBay, is growing by 3 percentage points or 3% year-on-year. Other players that have already reported their data are only 1% growth. Note, in particular, the Scandinavian Boozt, which is most similar to Answear in its operating model. A mere 1% growth versus our 7%. Our 7% is a like-for-like result, meaning we're not adding new markets or stores, purely organic growth, additionally, currency fluctuations, primarily the weakening of the hryvnia in the Ukrainian market, have taken an additional 2 percentage points off our sales growth. In constant currencies, this growth would have been over 9%. We're still waiting for the Modivo S.A.'s results, especially those achieved in online, but even without them, it's clear that this 7% increase can be considered at least a decent result. We compare favorably to our competitors in terms of average order value. Despite the sales period and the fact that exchange rates halved our growth in the first quarter, we're reporting a 1.8% increase, and these average order values are simply higher than our competitors. The average order value is growing in every segment, both online and offline. Our offline segment is experiencing much higher growth. The selection in brick-and-mortar stores is curated, a crème de la crème of offerings. It's clear that growth potential is being realized offline in the Answear store by 13%, while basket growth in PRM is 8%, and the same potential can be unlocked in increasing the average basket value in the online store. When it comes to sales by geography, we clearly see that Poland is the leader in growth. In Poland, we're growing the fastest. We've already built brand awareness here, not only through our longest history and market presence, but also through broad-based activities and offline marketing. This is paying off with very strong growth. Over 21% growth in the Polish market in the first quarter. European Union countries saw stable 5% growth. This dynamic in the first quarter is the same as for the entire 2025. Within this group of countries, there are countries with year-on-year declines, as well as those growing at double-digit rates. Here, one could say, this is precisely what geographic diversification is all about. This risk associated with the effects of a weakened economy and weaker customer base is mitigated by expanding operations to more than a dozen markets. This is the model. Answear, our company, operates within the segment outside the European Union. Here, the main challenge is the devaluation of the hryvnia, which is taking away as much as 10 percentage points of sales growth. In constant currencies, this growth would be just those 10 percentage points higher than the reported -2%, as that was the reality in the first quarter, a slight year-on-year decline. The second factor that's certainly influenced this segment's sales is the introduction of customs duties in 2025, mainly in the second half of the year, which impacted the possibility of export sales in the PRM segment. This primarily concerns sales to North America. This also impacts the segment's results, but above all, the condition of the Ukrainian market. Regarding the profitability of the business budget, we see that the primarily positive aspect is the increasing sales margin. The margin is growing faster than the revenue from sales, so we're gradually adding those few tens of percentage points to the margin. We're increasing the first margin. Even though marketing expenses in the first quarter were still high and the increase in basket value, mainly during the sales period, didn't fully dilute the increase in some cost categories. At the EBITDA level, profitability for the first quarter falls somewhere between last year, which was a very good year, and 2024, when we recorded an EBITDA result of PLN 3 million in the first quarter. It's worth explaining something else, because looking at the earnings report, we see a negative net profit. This is the impact of exchange rates on the company's results, because at this level, the change in the EUR/PLN exchange rate resulted in negative exchange rate differences on valuation. Here, we're dealing with the valuation of both settlements and IFRS liabilities under IFRS 16, which had a negative impact this quarter, in contrast to the positive impact of the strengthening of the złoty in the first quarter of last year and the valuation that improved last year's results. You can see in the two charts on this slide that this year, after the Polish złoty slowly strengthened in January and February, the outbreak of the U.S.-Iran armed conflict in March shook currency markets and sharply weakened the Polish złoty at the end of March. As a result, we valued all our trade liabilities denominated in EUR and our IFRS 16 liabilities, which are also denominated in EUR, at a much higher exchange rate at the end of March than at the end of December last year. The result is PLN 4.5 million in negative exchange rate differences. Of this PLN 4.5 million, PLN 3.9 million are unrealized exchange rate differences. You'll find all this data in the financial statements, along with standard interest expenses on financial liabilities. Standardly, although interest is slightly lower this year, it's still lower than last year. This translates into a reduction in gross profit of over PLN 8 million due to the result on financing activities. Last year, in the first quarter, the PLN strengthened from PLN 4.27 at the beginning of the quarter to PLN 4.18 at the end of March 2025. This strengthening resulted in the valuation of liabilities, resulting in over PLN 4 million in positive exchange rate differences, which offset financing costs of a similar amount. As a result, the total result on financing activities was zero last year, and this year, as I remind you, it was -PLN 8 million. Balance sheet valuations have a tendency to reverse the effect when the exchange rate returns to the pre-change level. This potential improvement, as the EUR/PLN exchange rate is currently returning to around 4.24 or 4.25 PLN, will be visible in the second quarter. However, at the end of the first quarter, this is the situation. As I summarize this slide, this is the company's net result, as reported to the stock exchange yesterday. The company's situation and report are not just a profit and loss report, but also a balance sheet. It's worth mentioning two other aspects that influence the assessment of operations in the first quarter. The first is the significant improvement in cash turnover and the contributing factors in inventory turnover and payables turnover. Inventory turnover in the first quarter is 21 days faster than a year earlier. This is because we're selecting brands we acquired after moving into the premium segment. We're strengthening the budgets of brands that are selling better. We're reducing those that customers haven't received well. We're also placing deeper orders, ensuring improved sales metrics. We're collaborating with suppliers, trying to replace offers from previous seasons with the new season. Therefore, the inventory we currently have is of much better quality and has better aging. The improvement is significant in terms of turnover, although there's still potential for further optimization. Payables turnover is 91 days. On the one hand, the balance is lower due to lower inventories. Utilization is also higher due to faster payments, thanks to existing financing lines and improved operational processes. The payables period has been shortened by 13 days, which, given the constant receivables turnover, accelerates cash turnover. There's a learning curve here. We're collecting and analyzing data from new brands. We have increasing experience in the premium segment, and these observations and information should pay off in the future. Since working capital efficiency is improving, we also have a lower need for bank financing. Year-over-year, net debt at the end of March fell by nearly PLN 20 million, along with a simultaneous decline in trade payables. Although we have available limits in banks amounting to nearly PLN 400 million, even at the end of March, i.e., the period before the main part of the spring-summer season, we are only using a small amount, over 40% of these opportunities. This means that we are, firstly, securely and qualitatively stocked, and secondly, we are not burdened with debt. On the contrary, we have the opportunity to dynamically develop sales, and we will certainly take advantage of these opportunities as soon as the economic situation improves, especially in those markets where we are currently observing weaker demand and weaker customer performance. We are consistently investing in marketing, strengthening the brand's position in the market. Here, in the upper chart, we see our marketing expenditures by quarter in previous years. You can see that in the first three quarters of last year, we managed to significantly optimize these expenses, perhaps even a little too much, because this tempted us to run a large image campaign on television in the fourth quarter, which somewhat damaged these statistics and, at the same time, the company's results last year. Therefore, this year we are learning from what happened last year and intend to pursue a balanced marketing spending policy, just like we did in the first three quarters of last year. It's clear that we achieved this in the first quarter more or less according to plan, and this should continue in subsequent quarters, especially since there will certainly be no spike in expenses in the fourth quarter. This optimization will certainly occur here. In all quarters, these expenses should be slightly higher in value than last year. Our sales in value terms are still growing, so we also need to fuel these sales with increased marketing spending. As a percentage of revenue, this ratio should decrease by about half to one percentage point. This seems entirely possible. Please note these bars at the bottom. In the first quarter of this year, we spent 19.6% of our revenue on marketing. That's exactly the same as we spent 19.6% in all of last year. Considering that the first quarter is the weakest quarter in terms of revenue, simply the smallest, with this balanced policy of more or less even distribution, it seems we're on track to reduce these expenses below this level for the entire year, given the higher sales levels in subsequent quarters. That's our plan. Moving on to the next slide, we're generally on a path to reducing marketing costs. Our goal is to reduce marketing costs annually in the coming years by 0.5-1 percentage point. It seems we're perfectly capable of achieving this, and this should be aided primarily by our growing business scale. These marketing expenses include all marketing-related costs, including those of our own department, meaning the people employed there, and the tools and numerous tools we use in these activities. They have, you could say, fixed costs, independent of revenue. Obviously, if revenues are higher, the share of these costs will be lower. In reach campaigns, where you simply pay for reach, for running the campaign, regardless of sales, these expenses will automatically optimize as long as revenues continue to grow. It seems they should. The lack of new market openings in the near future should also help us in this regard. It's clear that a new market always needs to be fueled with slightly higher marketing expenditures in the initial period. These new markets shouldn't be available now, this task should also be easier. The campaigns we've implemented recently seem to be already contributing to this future conversion in some way. We can see that traffic is increasing on our website, it seems that the optimization tests we should have conducted last year should also yield similar, positive results this year. We should also maintain a balanced policy regarding these marketing activities, both image building and post-sales, in the coming quarters. Optimizing them all to ultimately reduce conversion costs. The use of AI tools should also help with this, both for creating content needed for these marketing activities and for optimizing them. These tools are becoming increasingly effective, and we are using them, and it seems that this should also help us. Our goal is to consistently build a leading position in the premium fashion market in Central Europe. It seems we are on the right track here. No other significant competitor is positioning themselves in the same way as us, so it seems we have a good chance of achieving this strategic goal. Therefore, we will continue the policy we mentioned at the beginning of the year, expanding our offerings in both Answear and PRM in this direction, acquiring additional brands, optimizing inventory across individual brands and product groups in terms of turnover and margin. Therefore, the percentage margin on sales has been increasing in recent quarters, and this should continue in the coming quarters, monetizing the changes we introduced in previous years in positioning and product offerings. In logistics, we are expecting warehouse automation, which we should implement next year to increase warehouse efficiency, but also to continue optimizing logistics costs because automation currently means optimization, meaning a reduction in logistics costs relative to the number of parcels shipped. On the one hand, we are facing a cash outlay, but on the other hand, it should simply result in increased company profitability and a reduction in logistics costs. In marketing, as I said, we will focus on the most effective marketing activities with the highest return, complemented by brand awareness and love brand-building activities conducted with our partners, including the brands we distribute in the first phase. The emphasis on developing our product offering and acquiring new brands will be greater, with a slightly smaller focus on optimizing this scope, as we know we're at a somewhat earlier stage and still lack many brands. We won't deny that acquiring these brands from the luxury segment is quite time-consuming and requires a bit more effort and time to successfully execute. It seems we're on the right track, and with each season it should get a little easier, as we're an increasingly recognized and valued partner for many global brands. In logistics, we share logistics with Answear, so these automations will be implemented for both brands. This should mean that the cost optimization effects on the front end will be more visible. The scale here is small, so it's still inefficient. As we increase our scale, our marketing efficiency should improve even more. We also have a few operational initiatives that should also improve profitability, such as the launch of a mobile app and a loyalty program. These events are ahead of us and should contribute a small amount to the brand's profitability. From an income statement perspective, please note that in the first half of last year, we had very good results and a strong growth momentum, which means our base for the first half of this year is high. It will be more difficult for us to significantly exceed this base in the first half of the year. Especially since the beginning of the year, January and February, we may have had slightly less inventory, hence the first quarter result, which wasn't what it could have been if inventory levels had been better. The second half of the year was weaker, and additionally, high marketing expenditures meant that the second-half result wasn't as good. We expect much greater improvement this year, in the second half of the year, both in terms of revenue growth dynamics and profitability, and above all, sales profitability during this period. I think we are well prepared for the coming quarters. The new brands that should appear in the portfolio should also be supported by larger purchasing budgets, which should be highly optimized. After all, we already have more and more data on sales for individual brands. When we introduce new brands, we never know how a given brand will sell. We don't know exactly how to structure this purchasing structure. Now, after just a few seasons of these new brands, these statistics are much better, and therefore we can significantly optimize this inventory. Also what he said about marketing. There's significant room for optimization here, and it seems we're on track to increase profitability in these activities. Attractively and financially, we're perfectly poised to sustain further growth, both operationally and financially. The [Non-English content] show that we have secured this position. That's all we prepared for the presentation. Here's another slide that requires a brief comment. We've lowered our plan. We strictly don't publish such plans or forecasts. We only have an incentive program for our key managers, which activates if the company achieves specific EBITDA results. The plan for fully activating this program was PLN 100 million. We've lowered it to PLN 90 million. This still seems to be a satisfactory level, ambitious, but also very realistic to achieve this year. It seems that after this first quarter, even though this result was weaker, we're on track, considering all the circumstances, to achieve this plan this year. That's all for now. We can move on to the question. Yes, sir. Gentlemen, thank you very much for the presentation, which we'll pause and zoom in so we can see each other better. I'd like to start with some questions, because it's probably worth emphasizing that at the beginning of this Q&A session, sales on the Polish market were growing, as you indicated in the report, very dynamically, especially considering that this first quarter, as you've pointed out for years, has usually been the weakest seasonally. Over 21% is the direct result of last year's TV marketing investments. How long can this continue this year? Yes. Above all, this shows that if the market is stable, if the situation isn't favorable, or at least not disruptive, we can grow and achieve good results. Poland is also a hub for us, one might say, where we test various solutions. It's clear that these tests are proving successful, we hope to translate this to other markets, especially where the macroeconomic situation or external circumstances aren't too disruptive. Sure. You also indicated that sales of the SS26 collection, the spring/summer collection, have started well. Are you still seeing this effect in this quarter, which we're already halfway through, meaning the second quarter, and this offering is enjoying unwavering interest? How does this collection compare to what you've been observing since the beginning of 2025? Generally, yes, spring sales are looking good. Yes. Looking at the details, it's probably worth noting that in April, when it was relatively cold, sales were weaker, but in May, when the weather is favorable, maybe except for today, we're making up for it strongly, so it seems that the entire second quarter should be relatively positive. That's what we said. We expect the first quarter to be the most difficult for us. Each subsequent quarter should be better than the last. It seems to be somewhat rational. Two more questions from me. Do you gentlemen see any impact of this energy crisis on consumer sentiment, or has it not been felt in Poland so far? As you can see, it's not very noticeable. The question, of course, is what happens next, right? How long will this crisis last, and could it have any impact on consumer sentiment? If nothing extraordinary happens, it seems it probably shouldn't have a significant impact. Obviously, this global situation is very dynamic, so it's difficult to pinpoint it. Sure. One last question from me, because Answear has also been present in the Hungarian market for years. There's been a change of government there, and there's talk that the country might return to a path of economic growth. Is this reflected in consumer sentiment, any form of recovery, or is it more like what you gentlemen were saying? Is there still some sociopolitical uncertainty? It's probably too early to say for sure, but hopes are high regarding the release of EU funds, the unblocking of EU funds. That's one thing. Secondly, consumer sentiment in general, especially in the middle and upper classes, should improve significantly because it's probably the better political option for them right now. Probably, investment and consumption sentiment should also benefit significantly. Currently, we see that the forint exchange rate has actually improved, and that's already having a positive impact on margins. Oh, Yes, of course. This is a question from our viewers. Mr. Maciej writes, "Over the last 12 months, the company spent PLN 336 million on marketing. However, new customers spent PLN 381 million during this period," according to Mr. Maciej's calculations. Do you think that marketing activities are effective in the context of these numbers? I'm not entirely sure if they are that precise. I'm already saying PLN 181 million. The expenses are probably close to what they are. Well, you can assume that. PLN 300 million and PLN 381 million are sales revenues that were generated in the last 12 months by new customers, i.e., not by last year's customers, but by new customers, and these data come from the cohort report that we publish. Yes. Please note that it's not that we don't have to spend on customers who are already our customers. Yes, these marketing expenses have to apply to both old customers and new customers. It's not that once a customer is acquired, we can simply not invest in him at all. We spend on both old and new customers. Of course, acquiring new ones is much more expensive than retaining old ones. To ensure a long-term growth trajectory, we need to spend on both new and old customers so they don't forget about us, on loyalty, on re-engagement. The amounts Maciej cites here don't just apply to marketing expenditures, but to marketing as a whole. This includes marketing teams, tools, yes, which aren't cheap either, and which we have to maintain, for which we have to pay subscription fees regardless. We absolutely agree that as a company, we spend too much on marketing. The entire e-commerce sector spends too much on marketing. We hope that these expenses will be optimized both on our side and on the side of our competitors, especially entities like Temu and Shein, which until now have been taking advantage of what we might call a loophole in the system for collecting customs duties and taxes in the European Union. These taxes weren't collected from them. This is expected to change from the middle of this year. We hope that this will result in their marketing expenses, which recently seemed to be simply unlimited, will start to be rationalized. As a result, unit prices will drop or at least stop rising. The quickest way to see this is in digital marketing, right? First and foremost. Yes, first and foremost. Mr. Maciej is asking at what level the customer conversion rate should stabilize in the marketing area. What can you say about this? Conversion primarily depends on how much traffic we bring to websites and how qualitative that traffic is. Yes, if we run image-based and television campaigns, then this traffic is obviously more mass-based, meaning more random. Yes, if we drive traffic through digital activities, precisely targeting customers, then we can drive more calorie-dense, higher-converting traffic. The fact that conversions haven't been the highest in the recent period stems from the fact that we had a lot of image-based and television activities, and this traffic was perhaps a bit random. That's an exaggeration, because some of these customers will certainly convert, but it simply needs more time. Yes, if people see a nice ad on TV, they often come in, but they don't have the intention to buy at that moment. Only in later periods, when that intention, that need to buy, arises, do they remember and come back. It's not that they always remember on their own, but often they need to be activated somehow with digital activities, which we did in the first quarter and will continue to do. From this point of view, I think a good moment for such an assessment of the entire TV campaign will probably be the end of this year, where we will have a full period from building brand awareness through the period of, like, sales of this collection in those crucial second, third, and fourth quarters, right? Exactly. These types of marketing mix activities should be evaluated over longer periods, preferably annually. Sure. Mr. Maciej asks what explains the lower operating result in Ukraine, indicating a figure of PLN 1.2 million versus PLN 7.5 million in the first quarter of 2025. Is there an improvement in profitability on the market visible in the middle of the second quarter? Ukrainian? This is data from the segment note, from the financial statement, and this note, export countries outside the European Union, is not limited to Ukraine. As I mentioned during the presentation, and the question was probably asked earlier in the chat, these are also export markets for the PRM brand. Yes, the main market, or the largest one in this segment, is definitely the Ukrainian market. There, the constantly weakening hryvnia is taking away not only our sales dynamics but also our margins, and this is the direct and immediate cause of the lower profitability of this segment. The situation in Ukraine, both in terms of currency and in terms of, I would say, demand and customer condition, is seriously affected by the war, and we simply have to operate under the conditions currently prevailing in this market. The second reason is the weakening profitability of export sales, where the tariffs introduced in some markets. Unfortunately, Donald Trump has started this tariff carousel, and to remain in some markets, we have to give up some of our margin so that at least to some extent, the impact of customs duties on proposed sales prices should be offset. Summer in Ukraine should be a little better. Winter is known to be the hardest because people simply have to focus more on basic necessities. Not to mention the fact that some people simply leave for the winter and return in the spring, fearing a power outage or lack of heating, so they prefer to spend the winter in better circumstances. This trend is visible in the second quarter, if we are to complete the full answer to the question. Sure. Thank you very much. This is interesting information. Mr. Jan writes, "In the letter to shareholders for 2025 and the annual presentation, you indicated that the year ended with optimal stock levels, which was supposed to allow for a full-fledged launch into the 2026 season. Meanwhile, in your commentary on the Q1 2026 results, you explained the low sales dynamics in January and February by having relatively low inventories of the autumn/winter collection. We also read that suppliers shipped goods later than a year earlier, which resulted in lower stock levels and poorer turnover. How do these two statements connect, and were supplier delays a surprise to you, or were the declarations of a full range at the beginning of the season premature and contributed to the loss of sales in January and February? How should this be understood?" It's all perfectly logical. Please note that in the first and second months, it's mainly the autumn/winter collections that are still selling. Yes. This is the clearance period, and the spring collections, regardless of whether there are a little more or a little less of them, aren't selling very well yet. It's like a good end to the year with low inventory from these old collections. It has two sides to it, right? On the one hand, it's generally positive, yes, because it's better to have the goods sold and cash in your account than to have a lot of them in stock. There's a certain drawback, that there's simply less of this kind of goods left on clearance, hence the weaker results in January and February. For the entire year, this is rather good news because it's already known that sales of new collections have been dominating since March, so there shouldn't be a negative impact of low inventory from old collections, but rather a positive impact related to the sale of new collections at full prices or simply at better prices than if they were old collections. As for the rhythm of deliveries, it always takes place within agreed-upon delivery windows with suppliers, but these windows are several weeks long, sometimes 2, sometimes 4, sometimes even 6 weeks. There are some shifts here and there. In one season, deliveries are faster, in another, they arrive a few weeks later, and that was the case this year as well. What's related to the fact that, well, at the moment, basically all ships have to sail around Africa, so this transport has simply been a bit longer. The delays aren't significant, but still, there are some. Yes. We were replenishing this inventory before the regular season, let's call it SS26, back in April with these missing deliveries. Sure. Mr. Zbigniew is asking about inventory. Could you elaborate further? You mentioned a much higher share of fresh goods and improved inventory turnover. However, a much higher inventory write-off is visible, especially in the PRM segment. Can we expect such high write-offs, especially in the PRM segment, in subsequent quarters, or will slow-moving goods be gradually sold off? The latter scenario is more likely. In accordance with our accounting policies and the principles we have adopted and adhere to, we must partially and then fully write off the slow-moving inventory write-off after a certain period. This procedure took place in the first quarter, and this is inventory from two years ago or older, so it's really just a tailwind from the first few months of developing the PRM brand. Indeed, the inventory write-off also weighed down the first quarter results. That's just that. You don't write off inventory twice, so we've already factored it into our costs, and even the inventory that's already partially depreciated has its value partially adjusted downward. It's easier to liquidate with higher discounts. The longer the sales history, the easier it is for us to optimize this value structure and target purchases more precisely. Yes, it's common knowledge that initial purchases from brands are always burdened with some larger error, and this then results in a slightly larger write-off. I think it should be easier in subsequent seasons. Let's not demonize this write-off, right? It's a matter of PLN 1 million. Versus the PLN 500 million value of inventory we have on the balance sheet. These aren't significant percentage values either. Firstly, they're small, and secondly, they're one-offs, as you said. Exactly. Mr. Jan is talking about logistics costs. The logistics cost ratio increased year-on-year from 13.2% to 13.8%, what do you explain, among other things, by the introduction of interior premium cardboard packaging? Since this is a fixed cost inherent in the new brand identity, should investors be prepared for a permanent decline in operating profitability at the logistics level? Probably not. This increase in logistics costs has several reasons. Packaging is a bit more expensive, yes, but please remember that the average basket value is increasing, so we should actually be able to earn money on these more expensive packaging. This increase in logistics costs this quarter was largely due to rising fuel prices, given the current market situation, and also to increased salaries for our employees and our partners, which means that in a quarter as low in revenue as the first quarter, it's obviously harder to spread these cost increases across a larger volume of orders. However, things should improve in the coming quarters, and the warehouse automation we're planning should also allow us to maintain these costs at a constant level or perhaps even reduce them slightly below their previous levels. We always optimize every change, so even if we change packaging, there's a learning curve, and we're able to optimize it further over time. Perhaps there's an additional factor, too, because the logistics cost coefficient was influenced by several smaller factors, and it's the sum of small events. It's also worth noting that this year's winter was much harsher than last year's, and for example, warehouse heating, which had to be run 24/7 during these winter months, also added to our costs. These are small individual amounts. In fact, they'd be difficult to notice in the financial statements. However, their sum results in a six percentage point increase in the coefficient. Also, remember that in this indicator, the denominator includes online sales, revenue, and they also grew more slowly in the first quarter of this year than last year. Sure. These are values to optimize in the coming quarters. Certainly. Precisely. Here's the second part of the question. Won't the rising return on investment, ROI, partially consume the expected savings from warehouse automation? How do you intend to finance the several dozen million PLN CapEx for this warehouse automation? Is it too early to even discuss this? I'll start with the second part of the question. It's not too early because when thinking about an investment, you definitely need to think about financing in parallel. We're well into talks with banks, and there will be separate financing from working capital financing, long-term financing for this type of investment, and we're currently working on that. Will the rising return on investment consume the expected savings from automation? This is also why automation is being implemented, so that an efficient, even more efficient, and automated logistics system with improved efficiency and dramatically improved process effectiveness can handle larger transaction volumes without further cost increases. Please note that our average basket value is also increasing, meaning customers are ordering more and consequently returning more. Ultimately, the average basket value after returns is also increasing, so the balance isn't actually that bad, but rather positive. This is part of the sales and commercial return, the customer's right to a refund. Of course, Mr. Jan asks more: "The report mentions a decline in sales and profitability in North American markets due to the introduction of import tariffs. Until now, Answear was perceived as a leader in the Central and Eastern European region. What is the current share of sales outside Europe, and is it significant? In the face of the new U.S. trade policy and geopolitical issues, are you planning to consider withdrawing from overseas markets?" It's probably too much to say that we're generating more sales there. No one said it was larger. It's simply part of the segment outside the European Union. This applies more to PRM than Answear. PRM simply has a few such brands, very selectively distributed, and such selective collections. The trend here is that customers simply order from all over the world, and we deliver them. It's not a large scale, and if we ever have to abandon it, we won't suffer either in terms of scale or profitability because it's just a margin. We run these sales because people are interested in them. We don't have to support them with marketing activities. It's simply difficult to refuse if orders fall through. Sure. Thank you very much. Well, I think those are the last five questions. Mr. Jan also points out that in your reports, you boast about your record-breaking NPS score and the fact that 83.5% of your customers are brand advocates. However, in the first quarter of 2026, the growth rate in the number of active customers was 3.1% year-on-year, up from 22% a year earlier, and the conversion rate fell to 1.47, the lowest since at least the beginning of 2023. Since you also have such a large number of promoters, why doesn't this translate into limited customer base growth and sales effectiveness? You admit that the positive trend of improving repeat business has stalled. You indicated that the premiumization process was supposed to build increasingly stronger loyalty, why has retention stopped growing now? Aren't you concerned that the rate of customer churn from the entry-level segment is faster than the ability to acquire new premium customers? Indeed, NPS in the premium segment is a reliable indicator for you, anticipating high levels of marketing costs. The rising return rate seems to contradict this theory, or am I wrong? This is a complex question. It's good that we have the content we see on the side of the screen, let's take a look at it. Very interesting. Thank you. Please note that conversion is a separate issue, as we mentioned earlier, conversion levels primarily depend on the amount of traffic we deliver to the system, websites, and applications. If we conduct any image-building activities, which drive more users to our websites, then the conversion rate is automatically lower, it probably has nothing to do with NPS, right? NPS is indeed an excellent metric. It's, you could say, an internal metric that we monitor very closely, especially during such changes, where the inventory structure changes, where new brands join, where certain brands leave us. Therefore, we closely monitored this metric to see to what extent these activities appeal to our customers and to what extent they might not. That's why we stated here that we're pleased that this indicator is growing because, well, because we have a stabilized customer base, these changes could have played an important role, served as a leading indicator, and we're pleased that our customers responded positively, as evidenced by the NPS metrics. However, as I said, conversion is a completely different issue. Translating this good NPS indicator into repeat purchases, higher basket sizes, and overall sales, there are still a number of actions to be taken to actually make this happen, and above all, it all takes time. It seems that this argument is very interesting, and we've been working hard on it ourselves, trying to draw some conclusions and see what positives can be derived from it. It seems that there are indeed certain positive trends visible, including in this metric. However, we must take certain actions to continue to increase these average basket sizes and ensure that customer return is higher than it is currently. It's not bad, but it can definitely still be better. There's definitely potential for action and improvement here, including inventory optimization, because introducing new brands always carries the risk of not knowing how much to buy from which brand, and these purchases are certainly imprecise. This is the first time with such new brands. In many brands, we buy too little and the stock runs out quickly. In some, we buy too much of something, there are too many of some items, and there are too few of others. There's still a lot of optimization work for us to do, especially since we work in an industry where trends change, the weather changes, and the seasons change. All of this then needs to be translated into precise statistics to generate sales curves for individual brands and product lines to optimize this inventory for the many issues we mentioned. The kitchen, the so-called kitchen of your business. Mr. Adam asks if you have any major investments planned this year. I'm not just talking about marketing, but also about whether there will be any logistics needs, or any smaller reductions, or whether there will be a complete focus on the core business and no major expenditures in other areas. Generally, the focus on the core business, especially in marketing expenses, as we mentioned, should be strong this year. Perhaps besides the fact that we need to invest a bit in AI tools and in marketing, and in other areas as well, because this is a trend that's hard to ignore, but it's not a huge amount. We will invest in logistics, but that's the plan for next year, so it seems to be very stable this year, without any major expenditure shocks. Okay. Those are the last three questions. Here come the questions from Mr. Jan, who indicates that he has the impression that you want to achieve a large part of your improved results through sales growth, which will dilute logistics and marketing costs. Understanding these strategies, I wonder what will happen if you don't achieve satisfactory sales growth. That would mean that the leverage would actually work the other way around, and in fact, January, February, and probably April, due to the weather, were rather weak and disappointing in this regard. Is this a valid line of reasoning, or is it not entirely accurate? After all, we grew by 7.4% in the first quarter, so even though we consider it weak, this dynamic is also higher than in the fourth quarter of last year, so it doesn't look so bad. It's not a bad prognosis for future periods. However, the level of our marketing expenses is always dependent on sales levels, at least digital, which we're primarily incurring at the moment. In either case, our expenses will be optimized for the sales levels we achieve. We don't assume these levels will be lower than last year, but rather that the growth dynamics will be there, either slightly higher or slightly lower, but we don't allow for the possibility that we might stop growing. That's another question, the last one from Mr. Jan. Do you want EBITDA to reach PLN 90 million in 2026 under the Incentive Program? What parameters, Mr. Jan points out here, sales growth, gross margin, and% of marketing and logistics costs, do you think are necessary to achieve this goal? All of these parameters, which Mr. Jan aptly listed in parentheses, are essential to achieving PLN 90 million. There must be positive sales growth, improvement in gross margin, optimization of marketing costs, and optimization of logistics costs. I would also add an increase in the average order value to better dilute fixed costs. These are several elements, but each of them is essential to achieving improved results. Sure. Thank you very much. These are my last two questions. One topic, because it intrigued me, is the tariffs on foreign platforms like Temu and Shein. This is indeed a significant business issue for you, from the cost perspective. What are you hoping for in this area? It's significant because these entities primarily drove up the unit prices of digital marketing. Yes. By not paying customs duties or taxes, they had, one might say, unlimited opportunities to spend on customer acquisition. For us, it's not exactly direct competition. They don't compete with the same customers. In most cases, because there's probably a certain percentage of these customers in common, right? Many people behave in such a way that they buy the more expensive products, but sometimes they also buy the cheaper ones because something catches their eye, even just to test it. Sales may not be such competition, but when it comes to the level of digital marketing spending, there's no differentiation anymore. If someone searches for a red striped dress, we also Google those phrases along with them. If someone raises the prices, they raise them for everyone, including us. Sure. Thank you very much for that specific answer. Gentlemen, let's summarize our meeting. What is your general attitude towards 2026? A good start, even though the seasonally weakest quarter of the year is behind you and you're now entering a better period, maintaining that the second half of the year could be the moment of a good, healthy business recovery of results and an influx of further positive news. Is that right? Yes, exactly. We assume that this first quarter should indeed be the weakest quarter this year, and that each subsequent quarter should be better, both in terms of revenue growth dynamics and especially profitability. If nothing extraordinary happens on the market, then this scenario seems very likely. Excellent. Thank you very much for the presentation and as always, for the interesting question and answer session. I encourage our guests to follow the company and visit the investor relations website, where you will find more information. The link to the investor relations website is in the chat, my guests were Mr. Krzysztof Bajołek, CEO of Answear.com. Thank you very much, Mr. Krzysztof. Thank you very much. Goodbye. See you soon. Mr. Jacek Dziaduś, Vice President of the Management Board for Financial Affairs. Thank you very much, Mr. Jacek. Thank you. Goodbye. Thank you also for your attention. Best regards. Have a nice afternoon. See you soon. See you next time. Thank you. Goodbye.