Slide 1: Aritzia January 2023 Presentation
ARITZLI. January 2023 ae -Prosententi
Slide 2: Forward-Looking Information
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, a
Slide 3: Aritzia is a vertically integrated design house
Aritzia is a vertically integrated design house with an innovative global platform offering Everyday Luxury online and in its boutiques We believe in high-quality, beautifully designed products We believe in aspirational environments and experiences We believe in personalized and engaging client ser
Slide 4: Executive Summary
4 EXECUTIVE SUMMARY Founded in 1984, Aritzia is a vertically integrated design house offering Everyday Luxury — Beautiful product — Aspirational environments — Engaging service — Captivating communications We are a multi-channel retailer with strong momentum in the United States as a result of our i
Slide 5: 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. ARITZIA
Slide 6: 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 7: 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
Slide 8: 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 ARITZI
Slide 9: Multi-Channel Retailer with a Surging eCommerce Business
MULTI-CHANNEL RETAILER WITH A SURGING ECOMMERCE BUSINESS Seamlessly mirroring our Everyday Luxury experience online, we undertook an omni-approach to everything as the COVID-19 pandemic fueled the meaningful eCommerce growth that was already underway FY21-FY22 +33% eComm revenue FY22 growth 38% eCom
Slide 10: Multi-Channel Retailer with an Expanding Geographic Footprint
10 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 | + © Ecmonton whistler Oysrcovver O cater @ seskatoon ID Kelowna 0 woes © tio: 114 Bo
Slide 11: Markville
Markville Opened October 6, 2022 ARITZIA
Slide 12: Proven Results
12 PROVEN RESULTS Net Revenue ¢s mitions) Net Income (6 millions) Comparable Sales Growth (%)!2 19% > 29% CAR $1495 CAR Qt Q2)— 3A Annual FY2018 9.3% 54% 63% 6.0% 6.6% $981 S0onmnere FY2019 10.9% 115% 12.9% 55% 9.8% $874 $857 $743 FY2020 7.9% 84% 51% 8.9% 7.6% FY2021 nla n/a n/a nla na FY2022 nfa nl
Slide 13: Future Growth
13 FUTURE GROWTH Our strategic growth drivers drove our business pre-pandemic, ensured our success mid-pandemic, and fuel our growth post-pandemic ARITZIA t Geographic eCommerce Expansion Growth Increased Brand Awareness Supported by strong momentum, Aritzia continues to make strategic investments a
Slide 14: Geographic Expansion
14 GEOGRAPHIC EXPANSION A key component of our growth strategy, our boutiques: — Drive sales and meaningful profits — Build brand awareness — Propel significant client acquisition — Fuel our eCommerce channel We take a measured approach to boutique expansion. Our planned openings in Fiscal 2023': —
Slide 15: Compelling Store Economics
15 COMPELLING STORE ECONOMICS! New Stores Sales per Sq. Ft. Estimated Revenue Contribution Total Sq. Ft. Revenue Estimated Net Investment Average Payback Period 1 Store economics for new stores are based on historical averages of recently opened stores and expected future performance. See "Forward-L
Slide 16: eCommerce Growth
eCOMMERCE GROWTH 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 Arefreshing take on style. Endless variety, inspi
Slide 17: eCommerce Growth: eCommerce 2.0
7 eCOMMERCE GROWTH We will deliver eCommerce 2.0 We will connect customers to Everyday Luxury, offering beautiful product, tailored experiences, and endless inspiration to be a leading eCommerce business Tailored Product Discovery Enabling customers to discover all we have to offer, while personaliz
Slide 18: Increased Brand Awareness
18 INCREASED BRAND AWARENESS We are driving brand awareness through expanding our boutique network, social media, influencer strategy, VIP program, and digital marketing We will continue to build our social community, and our social community will continue to talk. When our clients talk, we will amp
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS $ millions, unless specified 3Q23 3Q22 Net Revenue $624.6 $453.3 Gross Profit $270.7 $210.1 Gross Profit Margin 43.3% 46.4% SG&A Expenses $163.7 $110.1 % of Net Revenue 26.2% 24.3% Adjusted EBITDA! $119.6 $109.3 Adjusted EBITDA Margin? 19.2% 24.1% Net Income $70.7 $64.9 EPs? $0.
Slide 20: Financial Strength
20 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 Q3 fiscal 2023 ended November 27, 2022 $175M Available revolving credit facility $132M Cash and equivalents 3.7M Shares (up
Slide 21: FY23 Outlook
FY23 Outlook As of January 11, 2023 Q4 2023 vs Q4 2022 Net Revenue Gross Profit Margin’ SG&A Fiscal 2023 vs Fiscal 2022 Approximately $580 million to $600 million + approximately 31% to 35% Decrease by approximately 250 bps As a percent of net revenue approximately in line with Q4 2022 Net Revenue G
Slide 22: Long Term Profitability
22 LONG TERM PROFITABILITY Strong revenue growth drives operating leverage and long-term profitability ull Revenue Growth Led by our eCommerce and U.S. businesses and strong boutique performance Expense Management Continued investment in people, processes and technology with prudent expense manageme
Slide 23: Long-Term Growth Plan
23 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 Se
Slide 24: Adjusted EBITDA margin expected to grow to approximately 19% in FY27
We expect adjusted EBITDA as a percentage of net revenue’? to grow to approximately 19% in FY27 Our drivers” 1 Our ihvestments + Geographic Mix Shift = People Channel Mix: Shift - Technology - Supply Chain Strong Brand with Pricing Power F = Marketing Scaling Opportunities ‘Adjusted EBITDA as a perc
Slide 25: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES aa w Funding Operations Investing in Growth Other © Distribution Centres Approximately $500 million cumulative net capital expenditures FY24 to FY27 Retail Square Footage Growth We anticipate a cash balance of $1 billion+ by FY27 wv Returning Cash to Shareholders (NCIB)
Slide 26: Environment, Social & Governance (ESG)
ENVIRONMENT, SOCIAL & GOVERNANCE ("ESG") GOVERNANCE We are committed to driving responsible — ESG governance resides at the highest levels of our organization, with practices across every aspect of our responsibility resting with our CEO, supported by guidance from the operations and amplify the pos
Slide 27: Our People
27 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 EQUITY, DIVERSITY AND INCLUSION (ED&l) — Continued our investment in ED&l and secured an e
Slide 28: Our Planet
28 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
Slide 29: aritzia.com
aritzia.com ARITZIA