Aritzia Inc.

Thank you for standing by. This is the conference operator. Welcome to Aritzia's fourth quarter and full year fiscal 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 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. I would now like to turn the conference over to Carly Bishop, Executive Manager, Office of the CEO. Please go ahead.

Thank you, Tachi, and thanks for joining Aritzia's fourth quarter and full year fiscal 2022 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 fourth 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 MD&A are available on CR and the investor relations section of our website at arisia.com. I will now turn the call over to Brian.

Thank you, Carly. Thank you, everyone, for joining us today. Together alongside Jennifer and Todd, I'm excited to report on our Q4 and year-end results and share our outlook for the incredible year ahead. Our team did a fabulous job in Q4 capping off a tremendous fiscal 2022 where our business accelerated beyond our highest expectations. Our exceptional performance continued across all geographies and all channels as our boutiques once again surpassed pre-pandemic productivity levels by double digits and our business in the United States sustained its unprecedented growth. All accomplished despite the multitude of headwinds from the evolving global landscape. In fiscal 2022, we brought our everyday luxury experience to significantly more clients than ever before, with our active client base in the United States more than doubling. We also meaningfully expanded our boutique portfolio in the United States. This investment is continuing to pay off as these new boutiques are quickly becoming some of our top performing locations. In product, we expanded our assortment across depth, breadth, and new categories and completed our first ever acquisition and foray into menswear with reigning champ. We also bolstered our digital experience with investments into our e-commerce and omni-channel capabilities. All this while continuing to invest in the infrastructure required to scale for years to come. Looking back on fiscal 2022 and everything we accomplished makes me even more excited for the road ahead. We've never been better positioned to continue capitalizing on the incredible opportunities being presented to us. While Todd will provide you with the details of our Q4 and year-end financial results, I'm extremely pleased to share our performance highlights. In the fourth quarter of fiscal 2022, we delivered net revenue of $444 million. an increase of 66% from last year and 61% from two years ago. Our exceptional top-line growth was only outpaced by our bottom-line growth, as we delivered a justity bid of $66 million, or 15% of net revenue, an increase of 88% from last year and 57% from two years ago. We continued to make significant progress on our path to getting famous in the United States, As our sales growth is saying, it's unprecedented pace. Net revenue grew to 217 million Canadian, an increase of 109% from last year and 128% from two years ago. The United States accounted for 49% of our net revenues, almost half of our total business in Q4, compared to 39% last year and 35% two years ago. Our e-commerce business sustained its strong momentum as net revenue grew to $182 million, an increase of 21% from last year and 120% two years ago. E-commerce accounted for 41% of net revenues in the quarter. Our retail business continued to surge as net revenue grew to $262 million, an increase of 123% from last year and 36% from two years ago. with comparable sales growing 60% from last year, up 13% from pre-pandemic levels. For the full year of fiscal 2022, we delivered net revenue of $1.5 billion, an increase of 74% from fiscal 2021 and 52% from fiscal 2020. This manifested itself in the extraordinary adjusted EBITDA improvement, which grew to $289 million, or 19% of net revenue. an increase of 277% from last year and 68% from two years ago. Our United States business net revenue grew to $676 million Canadian, an increase of 132% from last year and 100% from two years ago. The United States accounted for 45% of net revenues in fiscal 2022. Our e-commerce business net revenues grew to $564 million, an increase of 33% from last year and 150% from two years ago. E-commerce accounted for 38% of net revenues for the full fiscal 2022. Our retail business net revenues grew to $930 million, an increase of 116% from last year and 23% from two years ago. Driving this exceptional performance is our continued investment in our sales channels. In Q4, we focused on sustaining our e-commerce growth by elevating our everyday luxury experience digitally. We enhanced Aritzia.com with new and improved features and functionalities across personalization and product discovery. In retail, our business continued to exceed our highest expectations across all geographies, particularly in the United States, where we opened seven new boutiques this past year, most recently Tysons in Virginia and Easton Town Center in Columbus, Ohio. Turning to product, in Q4 we launched our spring collection to an outstanding client response. Despite experiencing continued production challenges and logistic delays resulting in inventory pressures over the quarter, our use of strategic inventory management and expedited freight allowed us to somewhat mitigate the impact to our selection. Additionally, we were able to offset both revenue and margin pressure without raising our prices as we continue to grow our full price-selling business. In marketing, we continue to reach new and loyal clients through our captivating communications. This quarter, we delivered brand, feature, and trend-inspired campaigns that translated seamlessly across all our channels. In short, I'm proud of what our entire team accomplished as we close yet another challenging yet successful quarter and year, while we deliver everyday luxury to significantly more clients than ever before. I will now turn the call over to Jennifer to give you an update on some of the key areas of our business.