Current report no. 47/2020

Legal basis: 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 July 2020.

VRG S.A. joint stock company with its registered office in Cracow (the "Company") informs that the consolidated sales revenues achieved in July 2020 by the Company's Capital Group amounted to approximately PLN 85,2 million and were at the level of sales achieved in July 2019.

In cumulative terms, the value of sales revenues generated in the period from January to July 2020 amounted to approximately PLN 457,5 million and was lower by approximately 19,7% than in the corresponding period of the previous year.

At the same time, the Company informs that retail sales revenues generated in July 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 48,6 million and were lower than the revenues generated in July 2019 by about 5,0 %. Cumulatively, the value of sales revenues generated in the period from January to July 2020 in this segment amounted to approximately PLN 275,2  million  and was lower by approximately 23,1% than in the corresponding period of the previous year.

b) Retail sales revenues generated in the jewellery segment (W.KRUK brand) - approx. PLN 34,9  million and were higher than the revenues generated in July 2019 by approx. 10,8%.  Cumulatively, the value of sales revenues generated in the period from January to July 2020 in this segment amounted to approximately PLN 168,4 million and was lower by approximately 11,2% than in the corresponding period of the previous year.

VRG S.A. informs that the consolidated sales margin achieved in July 2020 by the Capital Group of the Company amounted to 49,6% and was lower than the margin achieved in July 2019 by about 0,6 percentage points. Cumulatively, the consolidated margin on sales in the period from January to July 2020 amounted to approximately 47,7% and was lower by 3,6 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 July 2020 amounted to 53,1 thousand m2 and was lower by 0.6% than retail space in July 2019.