Aritzia, Inc. · TSX:ATZ
Aritzia — Investor Presentation (July 2017)
27 slides from Aritzia's investor presentation, July 2017
Slide 1: Investor Presentation July 2017
Investor Presentation July 2017
Slide 2: Forward-looking Information
2 Forward-looking Information This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, busine
Slide 3: Investment Highlights
3 Investment Highlights • Rapidly growing, innovative design house and fashion retailer of exclusive brands • Strategically positioned in the global fashion landscape with a compelling value proposition • Proven track record of consistent growth • Strong new store and store expansion economics • Mea
Slide 4: We are strategically positioned in the global fashion landscape
4 We are strategically positioned in the global fashion landscape Luxury Affordable Luxury Fast Fashion Compelling Value Proposition Beautiful Attainable Aspirational Exceptional Product Price Shopping Experience Customer Service
Slide 5: About Us
5 About Us Aritzia is well-known and deeply loved by customers in Canada with growing customer awareness and affinity in the United States and outside North America Malia Obama Taylor Swift Karlie Kloss Bella Hadid Musician Entrepreneur Model TNA Talula Babaton Wilfred Updrift Sweater Moxon Dress Ju
Slide 6: We have a proven track record of consistent growth
6 Our Performance We have a proven track record of consistent growth Strong and Consistent Net Revenue Growth ($ millions) Net revenue growth every year for over 20 years 21% CAGR $667 $542 $ millions $427 $377 $322 $353 $244 $189 $207 $153 $113 $69 $89 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY20
Slide 7: The Aritzia Way
7 The Aritzia Way 01. Innovative Design House Offering A Strategic Mix Of Exclusive Brands 02. Beautiful High Quality Products At An Attainable Price Point 03. Refined And Proven Merchandise Planning Strategy 04. Aspirational Shopping Experience With Exceptional Customer Service 05. Premier Real Est
Slide 8: Innovative Design House Offering A Strategic Mix Of Exclusive Brands
8 The Aritzia Way: 01. Innovative Design House Offering A Strategic Mix Of Exclusive Brands Under the Aritzia banner, we offer a strategic mix of exclusive brands, Spring 1996 Spring 2006 Fall 1997 which accounted for approx. 90% of our Fiscal 2017 net revenue All of our brands are sold Fall 1994 Sp
Slide 9: Beautiful High Quality Products At An Attainable Price Point
9 The Aritzia Way: 02. Beautiful High Quality Products At An Attainable Price Point Direct Sourcing Approach We work directly with suppliers we believe to be best-in-class to source high quality materials and produce beautiful products. Our sourcing approach allows us to offer attainable pricing whi
Slide 10: Refined And Proven Merchandise Planning Strategy
10 The Aritzia Way: 03. Refined And Proven Merchandise Planning Strategy We offer a balanced mix across multiple aspects of our merchandise: • Brands • Product categories • Fashion essentials and must-haves We believe our demand-driven merchandising strategy allows us to: • Maximize full-price sales
Slide 11: Aspirational Shopping Experience With Exceptional Customer Service
11 The Aritzia Way: 04. Aspirational Shopping Experience With Exceptional Customer Service Our stores are designed to be aspirational Flatiron, New York Richmond, Vancouver SoHo, New York Metrotown, Vancouver Ste Catherine, Montreal Prudential Center, Boston
Slide 12: Anywhere, Anytime
12 The Aritzia Way: 04. Aspirational Shopping Experience With Exceptional Customer Service aritzia.com is a continually evolving digital representation of our brand Anywhere, Anytime • It is designed to facilitate an inspired user experience through aspirational aesthetics and an intuitive user inte
Slide 13: Premier Real Estate Portfolio With Compelling Store Economics
13 The Aritzia Way: 05. Premier Real Estate Portfolio With Compelling Store Economics We have a highly attractive network with 61 stores in Canada and 20 stores in the United States Our disciplined real estate selection process focuses on locations in high performing retail malls and high streets in
Slide 14: Long-Term Approach To Managing Our Business
14 The Aritzia Way: 06. Long-Term Approach To Managing Our Business We make long-term strategic decisions to position ourselves for future growth and enhance shareholder value while minimizing operating risk • Brand • • Real Estate Systems and Infrastructure Solid • Talent Foundation We thoughtfully
Slide 15: Our leadership is committed to driving our continued growth
15 The Aritzia Way: 07. Experienced Team With Proven Track Record Our leadership is committed to driving our continued growth Our dedicated senior management team has an average tenure of over 18 years Name Position Tenure Brian Hill Founder, Chief Executive Officer 32 Years Jennifer Wong President,
Slide 16: Our Future Growth
16 Our Future Growth 01. Expand And Enhance Store Network 02. Grow eCommerce Business 03. Drive Ongoing Exclusive Brand And Product Innovation Our Future Growth 04. Enhance Long-Term Profitability 05. Build our brand awareness
Slide 17: Expand And Enhance Store Network
17 Our Future Growth: 01. Expand And Enhance Store Network We have a meaningful opportunity New Store examples to expand our store network in the U.S. and Canada We have successfully opened 20 stores across the United States over the last 10 years. We plan to add 5―6 new stores per year to our store
Slide 18: Our eCommerce Engine
18 Our Future Growth: 02. Grow eCommerce Business Target eCommerce penetration to be 25% of total net revenue by the end of Fiscal 2021 Factors supporting our target eCommerce penetration include: • • Growing brand awareness Increasing use of data analytics Our eCommerce • Expanding range of product
Slide 19: Continuous Brand And Product Innovation
19 Our Future Growth: 03. Drive Ongoing Exclusive Brand And Product Innovation We look beyond what is to what could be by monitoring the evolving fashion landscape Our innovative design house strategy provides us with the flexibility to establish new exclusive brands and expand our offering of produ
Slide 20: Focus On Driving Profitability
20 Our Future Growth: 04. Enhance Long-Term Profitability We have significant opportunities to further enhance our profitability through: • Optimizing sourcing and production processes • Driving increased operating leverage through continued sales growth Our gross profit margin grew 320 basis points
Slide 21: Build our Brand Awareness
Our Future Growth: 21 05. Build our Brand Awareness Driving increased brand awareness through: • Social media and Flagship stores, • Our premier real estate and aspirational store designs, which highlight exceptional design and the unique ethos and aesthetic of our exclusive brands.
Slide 22: Financial Overview
Financial Overview
Slide 23: Strong Financial Performance
23 Strong Financial Performance Net Revenue ($ millions) Comparable Sales (%)¹ Average of double digit comps sales over the past nine quarters 25% CAGR $667 Q1 Q2 Q3 Q4 Annual $542 FY2016 26.0% 20.9% 15.5% 9.3% 16.8% $427 FY2017 12.8% 16.4% 15.1% 12.3% 14.1% FY2018 9.3% FY2015 FY2016 FY2017 Stack (3
Slide 24: Strong Financial Performance
24 Strong Financial Performance ($ Millions, except per share data) % Growth / % Growth / Q1 2018 Q1 2017 2017 2016 Margin Expansion Margin Expansion Net Revenue $145.0 $126.4 14.7% $667.2 $542.5 23.0% Gross Profit $57.5 $51.2 12.3% $265.5 $198.4 33.8% Gross Margin 39.7% 40.5% (80) bps 39.8% 36.6% 3
Slide 25: Strong Capital Structure to Support Growth
25 Strong Capital Structure to Support Growth Our capital structure provides us with significant financial flexibility to pursue our future growth strategies ($ Millions) As at May 28, 2017 $70 million Revolver Credit Facility $0 Term Loan $134 Capital Lease Obligation $0.7 Total Debt $134 Total Deb
Slide 26: Our Fiscal 2021 Targets
26 Significant Growth Opportunities Our Fiscal 2021 Targets Net Revenue Approximately $1.1 to $1.2 billion Expand Store Network 5 – 6 new stores per year Select Expansion / Repositioning of 4 – 5 stores repositioned per year Stores eCommerce Penetration Approximately 25% of total net revenue Adjuste
Slide 27: Thank You
27 Thank You More Information: Retail website: aritzia.com Investor website: investors.aritzia.com Email: investors@aritzia.com