Aritzia Inc.

Thank you for standing by. This is the conference operator. Welcome to EarthSeers first quarter 2025 earnings conference calls. 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 then zero. I would now like to turn the conference over to Beth Reed, Vice President, Investor Relations. Please go ahead.

Thanks for joining Arisia's first quarter fiscal 2025 earnings call. On the call today, I'm joined by Jennifer Wong, our Chief Executive Officer, and Todd Engledue, our Chief Financial Officer. As a reminder, please note that remarks on this call may include our expectations, future plans, and intentions that may constitute forward-looking information. Such forward-looking information is based on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions as well as the competitive environment. Actual results may differ materially from the conclusions, forecasts, or projections expressed by the forward-looking information. 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 the forward-looking information. Our earnings relief, the related financial statements, and the MD&A are available on CDAR+, as well as the investor relations section of our website. I'll now turn the call over to Jennifer.

Good afternoon, everyone, and thank you for joining us today. For the first quarter of fiscal 2025, we delivered an 8% increase in net revenue to $499 million. Comparable sales grew 2% as all geographies and all channels comped positively. Throughout the quarter, we continued to optimize the composition of our inventory. This drove a sequential acceleration in sales growth each month of the quarter. In addition to our improved inventory position, sales growth was also fueled by our new and repositioned boutiques and growing brand awareness in the United States, our primary growth market. U.S. net revenue increased 13% in Q1, while in Canada, net revenue grew 2%. In our retail channel, net revenue increased by 9% in the first quarter. This was driven by positive comparable sales growth in our boutiques and the progress we've made on our real estate expansion strategy. In Q1, we opened a newly repositioned location in Oak Brook, Illinois. Thus far in Q2, we've opened a new boutique in Boca Raton, Florida. Later in Q2, we plan to open three additional boutiques in Jacksonville, Florida, Plano, Texas, and San Diego, California. Our boutique openings have a proven track record as our most consistent and most predictable driver of top line growth. And the performance of our new boutiques remains strong beyond our expectations. The opening of our newest location in Boca Raton beat our internal sales projections by more than 35% and is tracking to pay back in just 10 months. This beats our own projections of 12 to 18 months. In addition, More than 60% of our clients during opening week at Boca Raton were new to Aritzia. This highlights the significance of our new boutiques as meaningful drivers of brand awareness and client acquisition in the U.S. In addition to the strong performance of our new boutiques, our boutique repositions also continue to deliver. The expanded square footage elevates the customer experience, allowing for enhancements such as a broader product assortment and more fitting rooms. Repositions also drive top line growth and profitability. Our reposition boutique in Shore Hills, New Jersey, which happens to be celebrating the one year anniversary of its reopening next week, is generating incremental sales growth at 75% and delivering a much higher contribution in terms of both margins and dollars. Turning to e-commerce, Net revenue grew 4% in the quarter in spite of a lower volume of markdown sales compared to the first quarter last year. But what is most encouraging is the momentum we're seeing. Sales accelerated throughout the quarter as we further optimized the composition of our inventory. We're also focusing on a number of initiatives intended to further enable growth in e-commerce and create a more cohesive digital journey for the customer. These strategic initiatives include an investment in digital marketing that will drive four key benefits. It will protect our brand, amplify our product franchises, grow awareness in the U.S., and fuel additional customer engagement. We also continue to make progress on enhancing the technology underpinning Arisia.com. We expect the improved site to go live in the back half of this fiscal year. Other initiatives to drive digital include improving our online merchandising, optimizing our omni-channel capabilities, enhancing our international e-commerce site, and developing a mobile app. Turning now to product, we entered Q1 well-positioned with our assortment in line with our historical balance of new styles and client favorites. Throughout the quarter, we focused on further improving the composition of our inventory. We were pleased to see that this improved inventory position resulted in an acceleration in sales trends as the quarter progressed. Clients responded well to both our new styles and client favorites. Our performance was consistently strong across product categories from our beloved sweat fleece and effortless collections to brands such as Denim Form. In marketing, we continue to focus on amplifying our product and our much-loved everyday luxury experience. We're gaining momentum and recognition in the U.S. not only with customers, but also in the industry. The Wall Street Journal featured an article on the rising popularity of our iconic effortless pant, underscoring its distinguishing features such as design, tailoring, and fabrication. Our network of celebrity fans also continued to expand. Hailey Bieber has been spotted in our Best Hug little ribbed t-shirts on numerous occasions and in multiple colors. And Jessica Alba has been wearing the Super Puff vest for cooler mornings in California. This growing media coverage and community of celebrity fans helps build industry relations, fashion credibility, and cultural relevance. All of this propels brand awareness and drives client acquisition in the U.S. Now, let me turn the call over to Todd.