In accordance with the accounting policies stated in Note 2.8 the Group and the Company recognise inventory at the lower of cost and net realizable value less cost to sell. The Group and the Company evaluate whether the value of inventory recognised at cost is not lower that its net realisibale value based on the historical data and actual subsequent results of inventory items sold below costs. Net realisable values are disclosed in Note 15.

Management has assessed the level of inventories and determined that the book value of inventories as of 31 December 2025 and 2024 does not exceed the net realisable value.

In 2025, the Group reviewed the methodology applied for calculating inventory write-downs to net realisable value for non-franchise entities. Based on historical actual sales data of inventory items of the respective ageing periods, it was determined that the actual net realisable value of inventory older than one season no longer supports the previously applied write-down assumptions; therefore, no write-down is applied to such inventory. Furthermore, based on actual sales data, the level of write-down applied to inventory older than two seasons was reduced. These changes reflect the most recent information available regarding the recoverability of inventories and their net realisable value. Accordingly, as at 31 December 2025, the inventory write-down to net realisable value decreased and amounted to EUR (4,105) thousand for the Group and EUR (1,116) thousand for the Company. Had the previous write-down assumptions been applied, the total write-down of inventories held for resale to net realisable value would have amounted to EUR (5,182) thousand for the Group and EUR (2,193) thousand for the Company. Results of inventories write-down to net realizable value are disclosed in Note 15.

The Group plans to adopt the above mentioned standards and interpretations on their effectiveness date provided they are endorsed by the EU.

The "Commercial and other equipment" category includes stores trading equipment, cash registers, IT equipment, warehouse equipment, and other assets used in the Group‘s and the Company's operations.

All depreciation of property, plant and equipment is recognised in the statement of comprehensive income and accounted for as selling expenses.

ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Group’s/Company’s financial assets at amortised cost includes cash and cash equivalents, trade, other current and non-current receivables and loans granted.

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings and payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s/Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and finance lease liabilities.

The measurement of financial liabilities depends on their classification, as described below.

Loans, borrowings and other payables

Change in liabilities arising from financing activities:

Changes in lease liabilities are disclosed in Note 25.

Pursuant to the Lithuanian Law on Companies the authorised share capital of a public limited liability company must be not less than EUR 40 thousand and of a private limited liability company must be not less than EUR 2.5 thousand. In addition, for all entities the shareholders’ equity should not be lower than 50 per cent of the company’s registered share capital. As at 31 December 2025 and as at 31 December 2024 the Company and all of the Company’s Lithuanian subsidiaries complied with these requirements. As at 31 December 2024 UAB Apranga Ecom LT did not comply with the requirements. Business activities of UAB Apranga Ecom LT are terminated since 2019 November month. UAB Apranga Ecom LT was liquidated and deregistered on 17 December 2025.

Pursuant to the Latvian Commercial Law, the minimum authorised share capital of a private limited liability company is EUR 2.8 thousand, subject to specific exemptions applicable to certain low-capital companies. As at 31 December 2025 and 31 December 2024 , all of the Company’s Latvian subsidiaries complied with these requirements.

Pursuant to the Estonian Commercial Code the authorised share capital of a private limited liability company must be not less than EUR 2.5 thousand. In addition, the shareholders’ equity should not be lower than 50 per cent of the company’s share capital. As at 31 December 2025 and as at 31 December 2024 all of the Company’s Estonian subsidiaries complied with these requirements.

In addition, the Group has to comply with the total equity over total assets covenant imposed in the agreement with Luminor Bank AS. For more information see note 23.