Aritzia, Inc. · TSX:ATZ
Aritzia — Investor Presentation (July 2021)
27 slides from Aritzia's investor presentation, July 2021
Slide 1: July 2021 Investor Presentation
July 2021 Invest
Slide 2: Aritzia is a vertically integrated design house offering Everyday Luxury
Aritzia is a vertically integrated design house offering Everyday Luxury online and in our boutiques We believe in high-quality, beautifully designed product We believe in aspirational environments and experiences We believe in personalized and engaging client service And we believe that all of this
Slide 3: Executive Summary
EXECUTIVE SUMMARY Founded in 1984, Aritzia is a vertically integrated design house offering Everyday Luxury Beautiful product Aspirational environments Captivating communications Engaging service We are a multi-channel retailer with a surging eCommerce business and growing footprint in the United St
Slide 4: We are strategically positioned in the fashion landscape
We are strategically positioned in the fashion landscape Luxury Sub-Luxury ARITZIA Everyday Luxury Mid-Market Fast Fashion Discount
Slide 5: Beautiful Product
BEAUTIFUL PRODUCT We conceive, create, develop and retail fashion brands, each with its own vision, distinct aesthetic point of view, and a depth of design and quality that provides compelling value. As a group, they are united by an effortless appeal and an of-the-moment point of view. All of our p
Slide 6: Aspirational Environments
ASPRIRATIONAL ENVIRONMENTS Each Aritzia destination - physical or digital - is carefully considered. We pride ourselves on creating immersive, human, and highly personal shopping experiences ARITZIA NEW AROUND HERE 8 ates youve never sacn before, Maybe ARITZIA
Slide 7: Captivating Communications and Engaging Service
CAPTIVATING COMMUNICATIONS AND ENGAGING SERVICE Captivating communications seamlessly span across our eCommerce, retail and social media platforms as our outstanding boutique and concierge teams deliver world-class experiences to delight our clients, resulting in loyal, enduring relationships
Slide 8: Multi-channel retailer with surging eCommerce business
MULTI-CHANNEL RETAILER WITH SURGING ECOMMERCE BUSINESS Fy21 +88% yiy eComm FY16-FY21 revenue + 3 6% growth fo eComm revenue CAGR FY21 50% eComm penetration FY20 23% eComm penetration Seamlessly mirroring our Everyday Luxury experience online, we undertook an omni-approach to everything as the pandem
Slide 9: Multi-channel retailer with an expanding geographic footprint
MULTI-CHANNEL RETAILER WITH AN EXPANDING GEOGRAPHIC FOOTPRINT Capitalizing on the availability of premier real estate, we are growing our boutique network across North America, with a focus on the United States We deliver Everyday Luxury to clients in 221 countries through aritzia.com oa sburban New
Slide 10: Topanga, California
10 Topanga, California Opened June 2021 ARITZIA
Slide 11: FY2016 FY2017 FY2018
¹ FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 ²
Slide 12: Future Growth
12 FUTURE GROWTH Our strategic growth drivers drove our business pre-pandemic, ensured our success mid-pandemic, and will fuel our growth post-pandemic ARITZIA aah cy mel 1 2 3 eCommerce and Geographic Product Omni Innovation Expansion Expansion Supported by accelerating trends, Aritzia continues to
Slide 13: eCommerce and Omni Innovation
eCOMMERCE AND OMNI INNOVATION We are further investing in our multi-channel relationship ARITZIA to service and delight our clients - whenever, wherever 2 Of women Women to the teas Because of women We support women ‘ai F Power of Women webgige nweren Enhanced digital experience Reduce friction and
Slide 14: Geographic Expansion
GEOGRAPHIC EXPANSION ' A key component of our growth strategy, our boutiques: New — Drive sales and meaningful profits Boutiques . Payback — Build brand awareness 12-24 — Propel significant client acquisition Months — Fuel our eCommerce channel We take a measured approach to boutique expansion. Our
Slide 15: Product Expansion
15 PRODUCT EXPANSION With the accelerated shift to digital and our eCommerce channel reaching critical mass, our product strategies can now be based on the unlimited opportunities provided online We see meaningful potential to double our exclusive product offering by FY25 through: — Depth (sizes, le
Slide 16: Brand Awareness and Customer Expansion
16 BRAND AWARENESS AND CUSTOMER EXPANSION Driving brand awareness through expanding boutique network, social media, influencer strategy, VIP program, and digital marketing With the current online environment offering compelling opportunities, we recently launched a paid media pilot, focused on clien
Slide 17: Slide 17
Slide 18: Resilient Through the Pandemic
18 RESILIENT THROUGH THE PANDEMIC FY21 results reflect our success in navigating COVID-19 while driving our business forward to capitalize on the opportunities ahead Net Revenue Performance %YOY FY2021-13% 1021 2021 3021 4Q21 % of Boutiques Impacted by Closures! Maximum During Period 1021 2021 3021
Slide 19: Financial Highlights
19 FINANCIAL HIGHLIGHTS Net Revenue Gross Profit Gross Profit Margin SG&A Expenses % of Net Revenue Adjusted EBITDA Adjusted EBITDA Margin Adjusted Net Income Adjusted EPS Free Cash Flow! Inventory Free cash flow is defined as net cash generated from operating activities excluding interest paid, les
Slide 20: Financial Strength
20 FINANCIAL STRENGTH Surging momentum and strong performance enabled us to capitalize on meaningful opportunities to accelerate our growth and optimize our balance sheet Ql fiscal 2022 financial results updated for subsequent events as of July 13, 2021 $40M Free cash flow! generated inLTM 75% Inter
Slide 21: FY22 Outlook
21 FY22 Outlook As of July 13, 2021 Net Revenue $1.15 to $1.20 billion vs FY21 +35% to 40% vs previous guidance Upwardly revised from $1.11 to $1.16B or +30% to 35% vs FY21 Gross Profit Margin Relatively Flat vs FY20 SG&A Increase As % of net revenue vs FY20 Including $9M related to COVID-19 protoco
Slide 22: Long Term Profitability
22 LONG TERM PROFITABILITY Strong revenue growth drives operating leverage and long-term profitability iS xe G Revenue Expense Profitability Growth Management Enhancement Led by our Continued Sourcing and accelerating investment in operational eCommerce and U.S. people, processes efficiencies while
Slide 23: Environment, Social & Governance
ENVIRONMENT, SOCIAL & GOVERNANCE We are committed to driving responsible practices across every aspect of our operations and amplify the positive impacts on people and the planet GOVERNANCE — ESG governance resides at the highest levels of our organization, with responsibility resting with our Presi
Slide 24: Our People
24 Our People We're committed to the success of the people who make us who we are through our commitment to growth and development, diversity, equity and inclusion, and employee well-being FY21 Accomplishments GROWTH AND DEVELOPMENT — Paid $28 million to ensure financial continuity for our people du
Slide 25: Our Planet
25 Our Planet We're committed to the protection and restoration of our planet through our promise to reduce our impact on climate, water and biodiversity FY21 Accomplishments CLIMATE — Became operationally carbon neutral through the purchase of VCS-certified carbon offsets and renewable energy credi
Slide 26: Forward-looking information
26 Forward-looking information Certain statements made in this presentation may constitute forward-looking information under applicable securities laws. These statements may relate to our future financial outlook and anticipated events or results and include, our ability to sustain momentum in our e
Slide 27: Investor Relations
Investor Relations Helen Kelly Vice President, Investor Relations hkelly@aritzia.com +1604 215 6557 aritzia.com ARITZIA