Current report no. 35/2020

Article 17 sect. 1 of the MAR - Confidential information

Subject: Consolidated sales revenues and estimated sales margin achieved by the VRG S.A. Capital Group in June 2020.

VRG S.A. joint stock company with its registered office in Cracow (the "Company") informs that the consolidated sales revenues achieved in June 2020 by the Company's Capital Group amounted to approximately PLN 82,5 million and were lower than the revenues achieved in June 2019 by approximately 8,3%.

In cumulative terms, the value of sales revenues generated in the period from January to June 2020 amounted to approximately PLN 371,8 million and was lower by approximately 23,3% than in the corresponding period of the previous year.

At the same time, the Company informs that retail sales revenues generated in June 2020 by the Company's Capital Group in particular segments of operating activity were as follows:

a) Retail sales revenues generated in the clothing segment (Vistula, Wólczanka, Deni Cler, Bytom brands) amounted to PLN 50,1 million and were lower than the revenues generated in June 2019 by about 13,7 %. Cumulatively, the value of sales revenues generated in the period from January to June 2020 in this segment amounted to approximately PLN 226,6  million  and was lower by approximately 26,2% than in the corresponding period of the previous year.

b) Retail sales revenues generated in the jewellery segment (W.KRUK brand) - approx. PLN 30,5  million and were higher than the revenues generated in June 2019 by approx. 3,8%.  Cumulatively, the value of sales revenues generated in the period from January to June 2020 in this segment amounted to approximately PLN 133,4 million and was lower by approximately 15,6% than in the corresponding period of the previous year.

VRG S.A. informs that the consolidated sales margin achieved in June 2020 by the Capital Group of the Company amounted to 50,8% and was lower than the margin achieved in June 2019 by about 1,8 percentage points. Cumulatively, the consolidated margin on sales in the period from January to June 2020 amounted to approximately 47,7% and was lower by 3,8 percentage point than the margin achieved in the analogous period of last year.

The Company informs that the total retail sales area of the Capital Group at the end of May 2020 amounted to 53,5 thousand m2 and was lower by 1.3% than retail space in June 2019.