Aritzia, Inc. · TSX:ATZ
Aritzia — Q3 2022 Earnings Presentation
25 slides from Aritzia's earnings presentation, January 2022
Slide 1: Aritzia January 2022 Investor Presentation
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: 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% viy eComm revenue FYI6-FY20 a Bere +36% eComm revenue igi CAGR FY21 50% eComm penetration FY20 23% eComm penetration “hall Seamlessly mirroring our Everyday Luxury experience online, we undertook an omni-approach to everything as the p
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 Mineo Lesa New
Slide 10: Green Hills, Tennessee
Green Hills, Tennessee Opened November 2021
Slide 11: Proven Results
1 PROVEN RESULTS Net Revenue (s millions) 16% CAGR Precovin $981 $874 $857 $743, $667 $542 eCommerce Fy20I6 FY2017 FY20I8 FY20I9 FY2020 FY2021 Adjusted EBITDA2:3(s millions) 19% —> CAGR tre-0O 173 set $133 $n8 $85 $77 FY201I6 FY2017 FY2018 FY2019 FY2020 FY2021 Margin 157% «17.8% 7.9% 18.4% 17.8% 9.0
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
13 eCOMMERCE AND OMNI INNOVATION We are further investing in our multi-channel relationship to service and delight our clients - whenever, wherever Enhanced digital experience Reduce friction and drive conversion Digital Selling Tools Fit Analytics Site optimization Convenient payment solutions Pers
Slide 14: Geographic Expansion
GEOGRAPHIC EXPANSION A key component of our growth strategy, our boutiques: . . . New — Drive sales and meaningful profits Boutiques — Build brand awareness Rovback vee . cae 12-18 — Propel significant client acquisition Months — Fuel oureCommerce channel We take a measured approach to boutique expa
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: Financial Highlights
7 FINANCIAL HIGHLIGHTS $ millions, unless specified 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 3Q22 $453.3 $210.1 46.4% $110.1 24.3% $109.3 24.1% $71.2 $0.61 $169.7 $176
Slide 18: Financial Strength
18 FINANCIAL STRENGTH Surging momentum and strong performance enabled us to capitalize on meaningful opportunities to accelerate our growth and optimize our balance sheet Q3 fiscal 2022 financial results updated for subsequent events as of January 12, 2022 $234M Free cash flow! generated in LTM 75%
Slide 19: FY22 Outlook
FY22 Outlook As of January 12, 2022 Net Revenue $1.425 to $1.45 billion vs FY21 +65% to 70% vs previous guidance Upwardly revised from $1.25 to $1.3B Gross Profit Margin Q4 improvement similar to Q3 compared vsFY20 to pre-COVID-19 levels in fiscal 2020 SG&A vs FY20 Q4 dollar growth similar to Q@3 co
Slide 20: Long Term Profitability
20 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 21: 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 For more details on our ESG performance, visit aritzia.com GOVERNANCE — ESG governance resides at the highest levels of o
Slide 22: Our People
22 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 $30 million to ensure financial continuity for our people du
Slide 23: Our Planet
23 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 24: Forward-looking information
24 Forward-looking information Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to repurchases under our NCIB, our future financial outlook and anticipated events or results and include, our ability
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