Slide 1: Q4 2024 Investor Presentation
Q4 2024 Investor Presentation
Slide 2: Forward-Looking Information
Forward-Looking Information Certain statements made in this document may constitute forward-looking information under applicable securities laws. Statements containing forward-looking information are neither historical facts nor assurances of future performance, but instead, provide insights regardi
Slide 3: Forward-Looking Information (continued)
Forward-Looking Information (continued) • our expectations for normalized year over year inventory growth and markdown rates, • our ability to recruit and retain exceptional talent, • our expectations regarding new boutique openings, repositioning of existing boutiques, and the timing thereof, and g
Slide 4: Non-IFRS Measures and Retail Industry Metrics
Non-IFRS Measures and Retail Industry Metrics This presentation makes reference to certain non-IFRS measures and certain retail industry metrics. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable t
Slide 5: Aritzia is a design house with an innovative global platform offering Everyday Luxury
Aritzia is a design house with an innovative global platform offering Everyday Luxury online and in its 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
Slide 6: We are strategically positioned in the global fashion landscape
Luxury Sub-Luxury We are strategically Everyday Luxury positioned in the global Mid-Market fashion landscape. Fast Fashion Discount 6 – Aritzia Q4 2024 Investor Presentation
Slide 7: Overview
Overview Founded in 1984, Aritzia is a design house with an innovative global platform offering Everyday Luxury online and in its boutiques through: • Beautiful product • Aspirational environments • Engaging service • Captivating communications We are a multi-channel retailer focused on growing our
Slide 8: 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 pr
Slide 9: Aspirational Environments
Aspirational Each Aritzia destination – physical or digital – is carefully considered. We pride ourselves on creating immersive, human and highly personal Environments shopping experiences. 9 – Aritzia Q4 2024 Investor Presentation
Slide 10: Captivating Communications & Engaging Service
Captivating Communications & 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. 10 – Ar
Slide 11: 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. 68 3 Edmonton Whistler 2 1 Kelowna 7 Calgary 1 Saskatoon 119 13 Vancouver Victoria 1 2 Se
Slide 12: Multi-Channel Retailer with Track Record of Strong eCommerce Growth
Multi-Channel Retailer with Track Record of Strong eCommerce Growth We take an omni-channel approach to our business, seamlessly mirroring our Everyday Luxury boutique experience online at Aritzia.com. eComm Net Revenue ($ millions) 37% $770 $785 CAGR $564 $426 $226 FY2020 FY2021 FY2022 FY2023 FY202
Slide 13: Galleria Roseville
Galleria Roseville Opened Feb 15th, 2024 13 – Aritzia Q4 2024 Investor Presentation
Slide 14: Proven Results
Net Revenue ($ millions) Net Income ($ millions) Proven Results1 19% $2,332 12% CAGR $2,196 CAGR $188 $157 eCommerce $1,495 $91 $79 Comparable Sales 1,2 Growth (Decline) $79 $981 $57 $874 $857 $743 $32 Q1 Q2 Q3 Q4 Annual $667 $19 $542 Retail ($56) FY2016 25.8% 20.8% 15.4% 9.2% 16.7% FY2017 12.8% 16.
Slide 15: Future Growth
Future Growth Our strategic growth drivers have propelled our business in the past, and we expect to build upon them to fuel our growth in the future. 1 2 3 Geographic eCommerce Increased Expansion Growth Brand Awareness Aritzia continues to make strategic investments across our people, technology,
Slide 16: Geographic Expansion
Geographic Expansion As a key component of our growth strategy, our boutiques: Expected • Drive sales and meaningful profits New Boutique • Build brand awareness Payback • Propel significant client acquisition 12–18 Months • Fuel our eCommerce channel We take a measured approach to boutique expansio
Slide 17: Compelling Store Economics
Compelling Store Economics1 New Stores Sales per Sq. Ft. $1,000 Estimated Total Sq. Ft. 8,000 Revenue Contribution Revenue $8 million Estimated $3 million Net Investment Expected Payback Period 12–18 Months 1 Store economics for new stores are based on historical averages of recently opened stores a
Slide 18: eCommerce Drivers
eCommerce Drivers We are further investing in our multi-channel relationships 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 • Person
Slide 19: eCommerce 2.0
eCommerce 2.0 We aspire to connect our clients to Everyday Luxury online, offering beautiful product, tailored experiences and endless inspiration to be a leading eCommerce business. Tailored Product Tailored Product Discovery Discovery We plan to enable clients to discover all we have to offer whil
Slide 20: Increased Brand Awareness
Increased Brand Awareness We are helping drive brand awareness by expanding our boutique network, social media presence, influencer strategy, VIP program and digital marketing strategies. We expect that our increased investment in digital marketing will help amplify our product franchises, grow bran
Slide 21: Financial Highlights
Financial Highlights In millions of Canadian dollars, unless otherwise noted Q4 2024 Q4 2023 Δ LY Net Revenue $682.0 $637.6 +7.0% Gross Profit $261.2 $242.2 +7.9% Gross Profit Margin1 38.3% 38.0% +30 bps SG&A Expenses $196.8 $171.3 +14.9% As a Percentage of Net Revenue 28.9% 26.9% +200 bps Net Incom
Slide 22: Financial Highlights
Financial Highlights In millions of Canadian dollars, unless otherwise noted FY 2024 FY 2023 Δ LY Net Revenue $2,332.4 $2,195.6 +6.2% Gross Profit $899.0 $914.0 (1.6)% Gross Profit Margin1 38.5% 41.6% (310) bps SG&A Expenses $708.8 $602.5 +17.6% As a Percentage of Net Revenue 30.4% 27.4% +300 bps Ne
Slide 23: Financial Strength
Financial Strength Strong momentum and performance have enabled us to capitalize on meaningful opportunities to drive our growth and optimize our balance sheet. As of Fiscal 2024 ended March 3, 2024 $313.6M Available under the revolving credit facility and revolving line of credit. No amounts were d
Slide 24: Fiscal 2025 Outlook
Fiscal 2025 Outlook As of May 2, 2024 Q1 2025 vs Q1 2024 $475 million to $495 million Net revenue + approximately 3% to 7% Gross profit margin Increase by approximately 450 bps SG&A as a percentage of net revenue Increase by approximately 250 bps Fiscal 2025 vs Fiscal 2024 Approximately $2.52 billio
Slide 25: Long-term Profitability
Long-term Profitability We expect strong revenue growth to drive operating leverage and profitability over the long-term. Revenue Expense Profitability Cash Flow Growth Management Enhancement Generation Driven by our Continued investment in Sourcing and operational Strong profitability and eCommerce
Slide 26: Long-Term Growth Plan
Long-Term Growth Plan U.S. and eCommerce net revenue projected to more than double. Geography United States — projected to more than double. Canada — continued modest growth. Channel eCommerce — projected to more than double. Retail — projected to grow at 50%+. Client Total clients projected to doub
Slide 27: Our Drivers Our Investments
We expect adjusted EBITDA as a percentage of net revenue1,2 to grow to approximately 19% in FY2027. Our Drivers Our Investments • Geographic Mix Shift • People • Channel Mix Shift • Technology • Strong Brand with Pricing Power • Supply Chain • Scaling Opportunities • Marketing 1 Adjusted EBITDA as a
Slide 28: Capital Allocation Priorities
Capital Allocation Priorities Funding Investing in Returning Cash to Operations Growth Shareholders (NCIB) Other Distribution Centres Approximately $500 million cumulative capital cash expenditures (net of proceeds from lease incentives)1 FY2024 to FY2027 Retail Square Footage Growth We anticipate a
Slide 29: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) We are committed to driving Governance responsible practices across every • Aritzia’s Chief Impact Officer, CEO and CFO together have full oversight and accountability for Aritzia’s Community aspect of our operations to strategy, activities, and performance, wi
Slide 30: People
People FY2024 Accomplishments We’re committed to the success of the Our People People who make us who we are through • 73% of our senior leadership positions are held by women, including our CEO. our commitment to opportunity, wellbeing • Provided over 80,000 hours of formal training provided to our
Slide 31: Planet
Planet FY2024 Accomplishments We’re committed to the protection and Climate restoration of our Planet through our • Developed draft greenhouse gas emissions reduction targets to be submitted to the promise to reduce our impact on climate, Science Based Target initiative. We are finalizing the detail
Slide 32: Thank You
Thank You