Answear.com (ANR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 22% year-over-year to PLN 353 million, with EBITDA tripling to PLN 10 million and net profit of PLN 3.7 million versus a loss in Q1 2024.

• Strategic shift to premium and high-end segments differentiated the brand, attracting higher-value customers and driving PRM brand revenue up 57% year-over-year with positive EBITDA.

• Polish market sales surged 46% year-over-year, with international sales accounting for 73% of total revenue.

• Completed major investment phase, now focusing on profitability, cost optimization, and operational efficiency.

• Gross margin improved to 39.6% (+0.8 p.p. YoY), despite currency headwinds and higher returns.

Financial highlights

• Q1 2025 revenue: PLN 353 million (+22% YoY); gross margin: 39.6% (+0.8 p.p. YoY); EBITDA: PLN 10 million (+230% YoY); net profit: PLN 3.7 million.

• Average order value increased 5.6% YoY to PLN 387; customer base grew 22% YoY with 1.4 million orders (+18.3%).

• Operating profit reached PLN 4 million, up from a PLN 1.7 million loss in Q1 2024.

• Cash from operations was negative at PLN -82.1 million, mainly due to inventory build-up for the spring/summer season.

• Net debt (including leases) rose to PLN 326.4 million, reflecting increased working capital needs.

Outlook and guidance

• Focus on maintaining cost discipline, especially in marketing, with Q2 2025 expenditures expected to be lower than Q2 2024.

• Ambitious EBITDA target of PLN 100 million by 2026, reflecting confidence in scalability.

• Geographic expansion postponed; emphasis on deepening presence in current markets and further premiumization.

• Key drivers for future quarters include macroeconomic conditions, consumer demand, currency trends, and the situation in Ukraine.

• No financial forecasts for 2025 were published.