Slide 1: May 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 global fashion landscape
Luxury Sub-Luxury ARITZIA Everyday Luxury Mid-Market Fast Fashion Discount We are strategically positioned in the global fashion landscape
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
ASPIRATIONAL ENVIRONMENTS Each Aritzia destination - physical or digital - is carefully considered. We pride ourselves on creating immersive, human, and highly personal shopping experiences ARITZIA
Slide 7: Captivating Communications and Engaging Service
po tt CAPTIVATING COMMUNICATIONS mmr sini 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 relat
Slide 8: Multi-channel retailer with surging eCommerce business
MULTI-CHANNEL RETAILER WITH SURGING eCOMMERCE BUSINESS Seamlessly mirroring our Everyday Luxury experience online, we undertook an omni-approach to everything as the pandemic fueled the meaningful eCommerce growth that was already underway ARITZIA FY16-FY20 +36% eComm revenue CAGR a FY20 23% eComm 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 wi Vietori of Boston @ Subur0n New York Manhattan New Jersey Washington DC ( United State
Slide 10: Easton Town Center, OH
Easton Town Center, OH Opened February 11, 2022 ARITZIA 10
Slide 11: Proven Results
PROVEN RESULTS Net Revenues millions) Net Income (6 millions) Comparable Sales Growth (%)!2 19% 29% FY2016 26.0% 20.9% 15.5% 9.3% 16.8% $081 sCommerce FY2017 12.8% 16.4% 15.1% 12.3% 14.1% $874 $857 $743 FY2018 9.3% 54% 63% 6.0% 6.6% FY2019 10.9% 11.5% 12.9% 55% 9.8% FY2020 7.9% 8.4% 51% 8.9% 7.6% FY
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 eCommerce and Geographic Product Innovation Brand Awareness and Omni-channel Expansion and Expansion Customer Expansion Innovation Supported
Slide 13: eCommerce and Omni Innovation
eCOMMERCE AND OMNI INNOVATION We are further investing in our multi-channel relationship to service and delight our clients - whenever, wherever ARITZIA Tennis — Tour-worthy styles in high-performance fabrics. Aces incoming. Enhanced digital experience Reduce friction and drive conversion Digital Se
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 Reiser ve . igs 12-24 — 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 potential to meaningfully expand our product offering by FY25 through increasing styles in our c
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 (4Q22)
7 FINANCIAL HIGHLIGHTS $ millions, unless specified 4Q22 4Q21 4Q20 Net Revenue $444.3 $267.5 +66.1% $275.4 +61.3% Gross Profit $179.5 $102.9 +74,4% $102.8 +74.5% Gross Profit Margin 40.4% 38.5% +190 bps 37.3% +310 bps SG&A Expenses $120.2 $72.4 +66.1% $64.3 +86.9% % of Net Revenue 27.1% 27.0% +10 bp
Slide 18: Financial Highlights (FY22)
FINANCIAL HIGHLIGHTS $ millions, unless specified FY22 Net Revenue $1,494.6 Gross Profit $655.0 Gross Profit Margin 43.8% SG&A Expenses $392.8 % of Net Revenue 26.3% Adjusted EBITDA' $289.4 Adjusted EBITDA Margin 19.4% Adjusted Net Income! $176.7 Adjusted EPS!? $1.53 Free Cash Flow! $221.9 Inventory
Slide 19: Financial Strength
19 FINANCIAL STRENGTH Surging momentum and strong performance enabled us to capitalize on meaningful opportunities to accelerate our growth and optimize our balance sheet As of fiscal 2022 ended February 27, 2022 $222M Free cash flow! generated in LTM 75% Interest acquired in CYC Design Corporation
Slide 20: FY23 Outlook
FY23 Outlook’ As of May 5, 2022 Net Revenue Approximately $1.8 billion vs FY22 +20% Gross Profit Margin Decrease by approximately 100 bps vs FY22 SG&A As a percent of revenue to increase vs FY22 approximately 50 bps to 100 bps Capital Expenditures $110 to $120 million Net of lease incentives Boutiqu
Slide 21: Long Term Profitability
21 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 22: 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 23: Our People
23 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 FY22 Accomplishments WELL-BEING — Ensured financial continuity for our people through the COVID-19 pandemic, pa
Slide 24: Our Planet
24 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 FY22 Accomplishments CLIMATE For the second consecutive year, we achieved carbon neutrality across our operations, which account for 100% of our S
Slide 25: Forward-looking information
25 Forward-looking information Certain statements made in this presentation may constitute forward-looking information under applicable securities laws. Forward-looking statements are based on information currently available to management and on estimates and assumptions made by management regarding
Slide 26: aritzia.com
aritzia.com ARITZIA