Aritzia Q3 2024 Investor Presentation
Forward-Looking Information (continued)
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our expectations for normalized year over year inventory growth and markdown rates, and optimized inventory levels,
our expectations regarding new boutique openings, expansion and repositioning of existing boutiques, and the timing thereof, and growth of our boutique network and annual square footage,
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our ability to realize our eCommerce 2.0 roadmap and omni-channel capabilities,
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our ability to recruit and retain exceptional talent,
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our ability to mitigate business disruptions, including our sourcing and production activities,
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our expectations for capital expenditures,
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our ability to generate positive cash flow,
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availability of sufficient liquidity,
anticipated run rate savings from our smart spending initiative,
warehousing costs and expedited freight costs, and
currency exchange and interest rates.
In addition to the assumptions noted above, specific assumptions in support of our Fiscal 2024 outlook include:
macroeconomic uncertainty,
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ongoing inflationary pressures,
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the level of new styles in our product assortment,
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normalized markdowns,
lower expedited freight costs,
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that our planned boutique openings and expansions will proceed as anticipated and on-time,
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anticipated total square footage growth of our boutiques,
infrastructure investments including our new distribution centre in the Greater Toronto Area, new and repositioned flagship boutiques, expanded support office space, and eCommerce technology to drive
eCommerce 2.0,
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subsiding transitory warehousing costs,
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estimated annualized run rate savings of approximately $60 million from our smart spending initiative, with approximately 50% of the benefits expected to be realized in Fiscal 2024, and
foreign exchange rates for Fiscal 2024: USD:CAD = 1.35.
Given the current challenging operating environment, there can be no assurances regarding: (a) pandemic-related limitations or restrictions that may be placed on servicing our clients or the duration of any such
limitations or restrictions; (b) the macroeconomic impacts (including those from the recent COVID-19 pandemic) on Aritzia's business, operations, labour force, supply chain performance and growth strategies; (c)
Aritzia's ability to mitigate such impacts, including ongoing measures to enhance short-term liquidity, contain costs and safeguard the business; (d) general economic conditions and impacts to consumer
discretionary spending and shopping habits (including impacts from changes to interest rate environments); (e) credit, market, currency, commodity market, inflation, interest rates, global supply chains,
operational, and liquidity risks generally; (f) geopolitical events; and (g) other risks inherent to Aritzia's business and/or factors beyond its control which could have a material adverse effect on the Company.
Many factors could cause our actual results, performance, achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without
limitation, the factors discussed in the "Risk Factors" section of our interim MD&A for Q3 2024 dated January 10, 2024 ("Q3 2024 MD&A"), annual MD&A for Fiscal 2023 dated May 2, 2023 ("Fiscal 2023 MD&A") and
annual information form for Fiscal 2023 ("Fiscal 2023 AIF") which are incorporated by reference into this document. A copy of the Q3 2024 MD&A, Fiscal 2023 MD&A and the Fiscal 2023 AIF and the Company's other
publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval+ ("SEDAR+") at www.sedarplus.ca.
The Company cautions that the foregoing list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect its results. We operate in a highly competitive and rapidly changing
environment in which new risks often emerge. It is not possible for management to predict all risks, nor assess the impact of all risk factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in any forward-looking statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this document represents our expectations as of the date of this
document (or as of the date they are otherwise stated to be made) and are subject to change after such date. We disclaim any intention, obligation or undertaking to update or revise any forward-looking
information, whether written or oral, as a result of new information, future events or otherwise, except as required under applicable securities laws.
3- Aritzia Q3 2024 Investor Presentation
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