Slide 1: Q3 2024 Investor Presentation
Q3 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 ability to realize our eCommerce 2.0 roadmap and omni-channel capabilities, • our expectations for normalized year over year inventory growth and markdown rates, and optimized inventory levels, • our ability to recruit and retain exceptional talent, • ou
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 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: 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 Q3 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 with expanding brand aw
Slide 8: 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. 8 – Aritzia Q3 2024 Investor Presentation
Slide 9: 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 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 117 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 FY22-FY23 +36% eComm To seamlessly mirror our Everyday Luxury experience online, revenue growth we take an omni-channel approach to our business, seamlessly mirroring our Everyday Luxury boutique FY23 experience online at Aritzia.co
Slide 13: Proven Results
Net Revenue ($ millions) Net Income ($ millions) Proven Results1 22% 29% CAGR $2,196 CAGR $188 $157 eCommerce $1,495 $91 $79 Comparable Sales Growth (Decline)1,2 $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% 16.4% 15.1% 12.
Slide 14: 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 15: 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 16: 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 Average Payback Period 12–18 Months 1 Store economics for new stores are based on historical averages of recently opened stores an
Slide 17: 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 18: 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 19: 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 plan to continue to build our social community, and we expect that our social community will continue to talk
Slide 20: Financial Highlights
Financial Highlights Unaudited, in millions of Canadian dollars, unless otherwise noted Q3 2024 Q3 2023 Δ LY Net Revenue $653.5 $624.6 +4.6% Gross Profit $270.9 $270.7 +0.1% Gross Profit Margin1 41.5% 43.3% -180 bps SG&A Expenses $187.4 $163.7 +14.4% As a Percentage of Net Revenue 28.7% 26.2% +250 b
Slide 21: Financial Strength
Financial Strength Strong momentum and performance have enabled us to capitalize on meaningful opportunities to accelerate our growth and optimize our balance sheet. As of Q3 Fiscal 2024 ended November 26, 2023 $300.0M Available under the revolving credit facility. No amounts drawn as at November 26
Slide 22: FY24 Outlook
FY24 Outlook As of January 10, 2024 Q4 2024 vs Q4 2023 $670 million to $690 million Net Revenue + approximately 5% to 8% Gross Profit Margin Flat to slightly up As a percent of net revenue to increase by SG&A approximately 250 bps Fiscal 2024 vs Fiscal 2023 Approximately $2.32 billion to $2.34 billi
Slide 23: 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 24: Long-Term Growth Plan
Long-Term Growth Plan USA business and eCommerce 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 double.
Slide 25: Our Drivers, Our Investments
We expect adjusted EBITDA as a percentage of net revenue1,2 to grow to approximately 19% in FY27. 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 p
Slide 26: 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 FY24 to FY27 Retail Square Footage Growth We anticipate a cas
Slide 27: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) We are committed to driving Governance responsible practices across every • Aritzia’s CEO and CFO together have full oversight and accountability for Aritzia’s Community strategy, activities, aspect of our operations to and performance, with guidance from the E
Slide 28: People
People FY23 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, placing our commitment to opportunity, wellbeing us amongst 90 companies in Canada that have women at the
Slide 29: Planet
Planet FY23 Accomplishments Climate We’re committed to the protection and restoration of our Planet through our • Signed and submitted a Letter of Intent to the Science Based Target initiative confirming Aritzia’s commitment to set greenhouse gas emissions reduction targets by November promise to re
Slide 30: Thank You
y Thank You