Slide 1: October 2022 Investor Presentation
AR October 2022 Investor Presentation
Slide 2: 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 serv
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 U
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
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 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 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 We deliver Everyday Luxury to clients in 200+ countries through aritzia.com Vietori Minne
Slide 10: Lenox Square
10 Lenox Square Opened July 22, 2022 To = ARITZIA
Slide 11: Proven Results
PROVEN RESULTS Net Revenues millions) Net Income (6 millions) Comparable Sales Growth (%)!2 19% 29% FY2018 93% 54% 6.3% 6.0% $081 sCommerce FY2019 10.9% 118% 12.9% 55% 9.8% $874 $857 $743 FY2020 79% 84% 51% 8.9% 7.6% FY2021 nla n/a n/a nla na FY2022 nfa nla fa nfa_ n/a FY2023 29.4% 28.3% FY2018 FY20
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 eCommerce and Omni- Geographic Product Brand Awareness and channel Innovation Expansion Development Customer Expansion Supported by accelerating tre
Slide 13: eCommerce and Omni Innovation
eCOMMERCE AND OMNI INNOVATION We are further investing in our multi-channel relationship ARITZIA to service and delight our clients - whenever, wherever ev chang semen em Enhanced digital experience Reduce friction and drive conversion Digital Selling Tools Fit Analytics Site optimization Convenient
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 aoa — Propel significant client acquisition Menta — Fuel our eCommerce channel We take a measured approach to boutique expansion. Our planned o
Slide 15: Product Development
15 PRODUCT DEVELOPMENT 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 have meaningfully expanded our product offering through increasing styles in our current brands an
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
7 FINANCIAL HIGHLIGHTS $ millions, unless specified Net Revenue $525.5 $350.1 +50.1% Gross Profit $220.3 $156.2 +41.0% Gross Profit Margin M.9% 44.6% -270 bps SG&A Expenses $147.2 $92.1 +59.8% % of Net Revenue 28.0% 26.3% +170 bps Adjusted EBITDA! $82.6 $72.9 413.3% Adjusted EBITDA Margin 15.7% 20.8
Slide 18: Financial Strength
18 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 Q2 fiscal 2023 ended August 28, 2022 75% Interest acquired in CYC Design Corporation ("CYC"), a leading designer and manufa
Slide 19: FY23 Outlook
FY23 Outlook' As of October 11, 2022 Net Revenue Approximately $2.0 billion to $2.05 billion vs FY22 +34% to +37% Gross Profit Margin Decrease by approximately 100 bps vs FY22 to 150 bps SG&A As a percent of revenue to increase vs FY22 approximately 50 bps to 100 bps Capital Expenditures $110 to $12
Slide 20: Long Term Profitability
20 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 21: 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 GOVERNANCE — ESG governance resides at the highest levels of our organization, with responsibility resting with our Presi
Slide 22: Our People
22 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 23: Our Planet
23 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 24: Forward-looking information
24 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 25: aritzia.com
aritzia.com | ri ARITZIA