Net revenue from sales lower by 16.9% recorded by the Company in the 3rd quarter of 2017 were caused mainly by year on year reduction of goods (mostly private brands) stock by over 25% and year on year limitation of retail space by 11.6%.

According to preliminary estimates, the Company has achieved the following financial results in the 3^rd quarter of 2017:

1.  Net revenue from sales in the amount PLN 42,220 thousand which is 16.9% lower in regard to the analogous period last year (was: PLN 50,810 thousand) - on the basis of comparable stores (in terms of LFL) the year on year sale was lower by 10.9%, where the Company limited the retail space year on year by 11.6%.
2. Gross loss at the level of PLN 4,037 thousand (gross loss in the 3^rd quarter of 2016 was PLN 689 thousand).

The Company holds an independent INTERSPORT licence since 24 March 2017 and from that date it started the implementation process of “The New Business Model” in which the system of ordering INTERSPORT high-margin private brands - directly from the producer - takes six to nine months. In view of the above, the effects of implementation of the 1^st phase of “The New Business Model” were visible in INTERSPORT showrooms only from 28 September of the current year - after the reception of first deliveries under new conditions, balancing the missing stock and commencing the marketing and information campaign. The Management Board expects that the actions undertaken will bring an improvement in sales results in the coming months and the full effect of the implemented changes will be visible in the 2^nd phase of the process, planned for spring 2018, when the deliveries of INTERSPORT private brands will be made entirely under new conditions.

Revenue from sales lower year on year by PLN 8,590 thousand and one-off costs incurred by the Company due to closing of two stores in Wrocław were what mainly influenced the level of the loss recorded in the 3^rd quarter of 2017.

 In the 3^rd quarter of 2017 the Company has lowered the costs of operating activities by 8.7%, i.e. PLN 1,812 thousand less year on year.

Cumulatively, after three quarters of 2017, the Company achieved net revenue from sales in the amount PLN 132,856 thousand which is 16.0% lower in regard to the analogous period last year (was: PLN 158,080 thousand), lowered costs by type by 6.3% (was: PLN 62,512 thousand, is: PLN 58,572 thousand) and recorded gross loss of PLN 7,496 thousand (was: gross loss PLN 1,144 thousand).

The detailed financial report for the 3^rd quarter of 2017 will be published on 13 November 2017.