Aritzia Inc.

Thank you for standing by. This is the conference operator. Welcome to ORIXIA's third quarter fiscal year 2022 earnings call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I will now turn the conference over to Carly Bishop, Executive Manager, Office of the CEO. Please go ahead.

Thank you, Carl, and thanks for joining Aritzia's third quarter fiscal 2022 earnings conference call. On the call today, I'm joined by Brian Hill, our Founder, Chief Executive Officer and Chairman, Jennifer Wong, President and Chief Operating Officer, and Todd Engledue, our Chief Financial Officer. Following management's discussion, we'll host a question and answer period open to analysts and investors. Please note that remarks on this call may include our expectations, future plans, and intentions that may constitute forward-looking statements. Due to the material impact of COVID-19 on business operations in fiscal 2021, certain references to our pre-pandemic results in the third quarter of fiscal 2020 have been included where management deems to be a more meaningful measurement of performance. The uncertain and dynamic nature of COVID-19 and its ongoing impact could continue to materially alter our performance. we would refer you to our most recently filed management discussion and analysis and our annual information form, which include a summary of the material assumptions as well as risks and factors that could affect our future performance and our ability to deliver on these forward-looking statements. Our earnings release, the related financial statements, and the MD&A are available on CDAR and the investor relations section of our website at ritz.com. I will now turn the call over to Brian.

Thank you, Carly, and thank you all for joining us this afternoon. Happy New Year. I'm excited to share, alongside Jennifer and Todd, our results for the third quarter of fiscal 2022. In Q3, our business continued to surge, surpassing our own high expectations across all geographies and all channels. In the United States, we saw our business further advance at an unprecedented pace. In addition, our entire e-commerce channel sustained its exceptional momentum, and retail in both countries flourished, with all boutiques open for the entire quarter for the first time since the start of the pandemic. Our exceptional performance in Q3 and throughout fiscal 2022 has not come without challenges. But our world-class team and their unwavering commitment to excellence and teamwork have enabled us to successfully navigate the ever-changing landscape of the pandemic and the many obstacles that have come with it. For this, I could not be more grateful and proud. As we set our sights on the future, we have extraordinary opportunities ahead of us. We are working hard to deliver on significant demand increases while managing the global headwinds of the pandemic. supply chain disruptions, labor shortages, and health and safety protocols. We remain focused on our fundamentals to sustain our growth and delivering our much-loved everyday luxury experience to our expanding client base, while we continue to purposefully invest in the infrastructure required to scale for years to come. While Todd will provide you with a detailed perspective of our Q3 financials, I'm very pleased to share our performance highlights for the quarter. In Q3, we delivered net revenue of $453 million, with growth of 63% or $175 million from last year, and growth of 70% or $186 million from two years ago. In the United States, our business has further accelerated at an unprecedented pace, Net revenue increased 115% from last year and 116% from two years ago, accounting for 44% of our revenue in the quarter. And on a particular note, we have almost doubled our active U.S. client base over the past trailing 12 months. Our e-commerce channel sustained its exceptional momentum as net revenue increased 47% from last year and 162% from two years ago, accounting for 33% of our revenue in the quarter. Our retail business flourished, with boutiques delivering sales growth of 72% from last year and 45% from two years ago, with comparable sales exceeding pre-pandemic levels in both Canada and United States by 26%. This manifested itself in adjusted EBITDA growing to 109 million, growth of 100% or 55 million from last year. We fueled our surging e-commerce business by further enhancing our digital everyday luxury experience. Beyond optimizing Eritrea.com with new and improved features and functionalities across personalization, product discovery, digital gift cards, and checkout. We brought our clients an elevated outerwear experience and launched Superworld.com, a new immersive branded digital experience to complement our Superworld pop-up boutiques. In addition, our Omni Capabilities Initiative is also meaningfully growing in adoption. Jennifer will speak to this shortly. Our retail business continued to exceed our own optimistic expectations. In addition to operating all of our boutiques for the first time since the start of the pandemic, we continued to expand our presence in the United States. We opened a new boutique in Nashville, Tennessee, and expanded four additional boutiques with our Troy, Michigan expansion, breaking opening day and opening weekend sales records. That being said, a strength of our boutique network is our people. They bring our much-loved everyday luxury experience to life, with each and every client's interaction. Despite shortages in the labor market in both Canada and the United States, we significantly expanded our team this holiday season to ensure every client's needs were fulfilled. Our world-class team not only drove tremendous success throughout the quarter, but delivered record-breaking results during our Black Five Day event, as almost half of our boutiques, including every single one of our 37 U.S. boutiques, achieving their top sales day in their history. Shifting gears to product, we saw an outstanding client response to our fall-winter collection. We extended our assortment depth by making strategic investments and expanding key programs with new lengths and sizes, bringing more of our most loved beautiful products to new and loyal clients. At the same time, Further headwinds as a result of the pandemic's resurgence resulted in meaningful supply chain disruptions taking shape in the form of factory closures, reduced production efficiency, and ongoing shipping delays. Our product and supply chain teams continued to work hard to mitigate these challenges through our geographically diverse supply chain, strategic inventory management, and the increased use of expedited freight. Jennifer will also touch on this shortly. In marketing, we effectively reach new and loyal clients by delivering captivating communications through brand and feature-focused product campaigns that seamlessly translated across all channels for our launches of Fall, Winter, and Super World, as well as our Black Friday event. I will now turn it all over to Jennifer Wong.