Aritzia, Inc. · TSX:ATZ
Aritzia — Q1 2024 Earnings Presentation
31 slides from Aritzia's earnings presentation, Jul 11, 2023
Slide 1: Q1 2024 Investor Presentation
Q1 2024 Inve,
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Slide 3: Forward-Looking Information (continued)
Forward-LookingInformation (continued) + our expectations regarding new boutique openings, expansion and repositioning of existing boutiques, and growth of our boutique network and annual square footage, + our ability to mitigate business disruptions, including our sourcing and production activities
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 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 product. We believe in aspirational environments and experiences. We believe in personalized and engaging client s
Slide 6: Overview
Overview Founded in 1984, Aritzia is a vertically integrated design house offering Everyday Luxury through: Beautiful product Aspirational environments Engaging service Captivating communications We are a multi-channel retailer with expanding brand awareness in the United States as a result of our i
Slide 7: 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 Q1 2024 Investor Presentation ARITZIA
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
AS p l ratio nal Each Aritzia destination - physical or digital - is carefully considered. We pride ourselves on creating immersive, human and highly personal Environ ments shopping experiences. 9 - Aritzia Q1 2024 Investor Presentation ARITZIA
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. ARITZIA
Slide 11: Multi-Channel Retailer with a Growing eCommerce Business
Multi-Channel Retailer with a Growing eCommerce Business To seamlessly mirror our Everyday Luxury experience online, we take anomni-channel approach to our business, seamlessly mirroring our Everyday Luxury boutique experience online at Aritzia.com. ARITZIA All The Clothes — Thoughtfully designed, e
Slide 12: 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. Il 68 115 Boutiques! m 4 , uston . Orlando & Dronoivis Miami ‘Boutique count at the end o
Slide 13: Southlake Town Square
Southlake Town Square Opened May 26th, 2023 13 - Aritzia Q1 2024 Investor Presentation ARITZIA
Slide 14: Proven Results
P roven Res U | ts! Net Revenue (6 millions) Net Income ($ millions) 26% 24% CAGR $2,198 CAGR $495 ‘eCommerce $e74 $981 $887 Comparable Sales Growth (%)!? FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023, ai a2 a3 Q4 Annual 9.0% 9.2% 2.2% 10.5% 8.5% 7.9% 8.4% 5.1% 8.9% 7.6% foul
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. ARITZIA Geographic eCommerce Increased Expansion Growth Brand Awareness Aritzia continues to make strategic investments across our people, processes
Slide 16: Geographic Expansion
Geographic Expansion As a key component of our growth strategy, our boutiques: * Drive sales and meaningful profits + Build brand awareness + Propel significant client acquisition + Fuel oureCommerce channel We take a measured approach to boutique expansion. Our planned openings in Fiscal 2024'are a
Slide 17: Compelling Store Economics
Compelling Store Economics! es ee Sales per Sq. Ft. Estimated Revenue Contribution vesttell Gg} IRE Revenue Estimated Net Investment Average Payback Period ‘Store economics for new stores are based on historical averages of recently opened stores and expected future performance. See "Forward-Looking
Slide 18: eCommerce Growth
eCommerce Growth — Stories — A curation of stories from the Aritzia archives. Yours to get lost in, 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 T
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 Discovery We plan to enable clients to discover all we have to offer while personalizing suggestions
Slide 20: Increased Brand Awareness
Increased Brand Awareness We are driving 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. When
Slide 21: Financial Highlights
Financial Highlights Net Revenue $462.7 $407.9 Gross Profit $180.0 $180.9 Gross Profit Margin! 38.9% 44.3% SG&A Expenses $153.5 $120.3 As a Percentage of Net Revenue 33.2% 29.5% Net Income $17.5 $33.3 Net Income per Diluted Share $0.15 $0.29 Adjusted EBITDA! $31.6 $69.6 As a Percentage of Net Revenu
Slide 22: Financial Strength
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 Q1 Fiscal 2024 ended May 28, 2023 $175M Available revolving credit facility. $58.8M Cash and equivalents. 3.9M Shares (up to)
Slide 23: FY24 Outlook
FY24 Outlook Q2 2024 vs Q2 2023 As of July 11, 2023 Net Revenue Gross Profit Margin! SG&A Fiscal 2024 vs Fiscal 2023 Flat to slightly down Decrease by approximately 750 bps As a percent of net revenue to increase by approximately 550 bps Net Revenue Gross Profit Margin! SG&A Capital Cash Expenditure
Slide 24: Long-term Profitability
Long-term Profitability Strong revenue growth expected to drive operating leverage and long-term profitability. ull Revenue Growth Led by our eCommerce and USA businesses and strong boutique performance. Expense Management Continued investment in people, processes and technology with prudent expense
Slide 25: 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 26: Adjusted EBITDA 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 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 percentage of net
Slide 27: Capital Allocation Priorities
Capital Allocation Priorities le wy A 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)! FY24 to FY27 Retail Square Footage Growth We anticipa
Slide 28: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) We are committed to driving Governance responsible practices across every + Aritzia's CEO and Aritzia’s Interim Chief Marketing Officer together have full oversight and accountability for aspect of our operations to Aritzia’s Community strategy, activities, and
Slide 29: People FY23 Accomplishments
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 growth and us amongst 90 companies in Canada that have women at the top developm
Slide 30: Planet FY23 Accomplishments
Planet FY23 Accomplishments We're committed to the protection and Climate restoration of Our Planet through our + Signed and submitted a Letter of Intent to the Science Based Target initiative confirming promise to reduce our impact on climate. Aritzia’s commitment to set greenhouse gas emissions re
Slide 31: Thank You
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