Aritzia Inc.

Thank you for standing by. This is the conference operator. Welcome to Aritzia's third quarter 2026 earnings conference 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 then zero. I would now like to turn the conference over to Beth Reed, Vice President, Investor Relations. Please go ahead.

Thanks, operator, and thank you all for joining Arisia's third quarter fiscal 2026 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 release, 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.

Thanks, Beth, and good afternoon, everyone. I hope all of you had a wonderful holiday season. I'm pleased to share that Q3 of fiscal 2026 was another standout quarter. Our teams executed on our strategic growth levers at a high level across the entire business. And our strong momentum has continued into the fourth quarter with record-breaking results over the holiday shopping season. In Q3, we achieved, for the first time ever, a billion-dollar quarter. Total net revenue of $1.04 billion was well above the top end of our guidance range. Sales in October and November exceeded our expectations, particularly as we started to lap the exceptional top line growth beginning at the end of Q3 last year. On a two-year stack, trends accelerated sequentially throughout the quarter. This was fueled by broad-based strengths across channels and geographies. The unparalleled demand for our everyday luxury offerings, combined with our digital initiatives, new boutique openings, and strategic marketing investments, drove a 43% top-line increase over last year. We're extremely pleased with our performance across both channels, with net revenue increasing 58% in e-commerce and 35% in retail. Comparable sales grew an outstanding 34%, fueled by double-digit positive growth in all channels and all geographies, led by our US e-commerce business. The holiday season was off to a great start as we delivered another record-breaking Black Friday event. Retail sales in both Canada and the United States hit all-time daily highs, with nearly 60% of our boutiques achieving all-time sales records. e-commerce sales in both Canada and the US also hit record daily highs. In addition, we benefited from lower markdowns compared to last year's event, driven by increasing affinity for our brand, broad-based demand for our product, and our strong inventory position. During the quarter, our performance in the United States continued to drive our overall results. In Q3, we generated a 54% increase in US net revenue. This highlights the extraordinary demand for our product and the tremendous momentum of the Aritzia brand. Our results were fueled by accelerated growth in e-commerce, supported by the launch of our mobile app and our investments in marketing. In addition, our new and repositioned boutiques over the last 12 months continued to perform well. We also generated outstanding comparable sales growth in our existing boutiques. In Canada, we accelerated our sales growth for a fourth consecutive quarter. We achieved a 29% increase in net revenue in Q3. This was fueled by exceptional performance in e-commerce and strong comp growth in our boutiques. In our retail channel, we delivered net revenue growth of 35%. This was driven by the success of our real estate expansion strategy and strong boutique comp growth in both countries. Over the past 12 months, total retail square footage growth was in the high teens. We opened a total of 13 new and four repositioned boutiques. This included five new boutiques in the third quarter, all in the United States, as well as the reposition of our Flatiron flagship. The strong comp growth in our boutiques continued to be primarily driven by traffic. This was fueled by the increasing affinity for our brand, which we supported with our strategic investments in marketing. Our real estate expansion strategy continues to yield exceptional results. This underscores the vast opportunity for growth in the United States, where we have just 72 boutiques today. The boutiques we've opened in the US in fiscal 2026 They're tracking to pay back in less than one year on average. This continues to be our target of 12 to 18 months. In Q4, we expect to open 40 boutiques in the United States. These include locations in Cincinnati, which is a new market for us, as well as in Las Vegas, Los Angeles, and Scottsdale. We've also already opened a repositioned boutique in Laval, Quebec. Our immersive retail experience is truly unmatched. This includes our aspirational store design, passionate style advisors, incredible cafes, and of course, our beautiful product. Our boutiques, particularly our flagships, are the best showcase of the Aritzia Everyday Luxury brand ethos. In November, we opened our third New York City flagship, located right in the heart of Manhattan's iconic Flatiron District. It sits just a couple blocks away from our original boutique, which opened in 2015. And now, a decade later, our new space is nearly two times larger, and it includes its very own AOK Cafe. To celebrate, we hosted a series of exclusive events which garnered significant social and media coverage, amplifying the enthusiasm for our brand and introducing Aritzia to new audiences. Every flagship marks a major milestone for our business. With every launch, we've raised the bar, refining and perfecting our strategy along the way. Our Flatiron flagship is a testament to that progress, celebrating the passion, collaboration, and drive of our team as we continue building momentum and shaping our success across the United States. In e-commerce, we delivered an increase in net revenue of 58%. This was driven by the increasing appreciation for our brand, as well as the successful launch of our mobile app. Our focus on full funnel marketing continued to fuel website traffic, which increased meaningfully in both countries. We also continued to benefit from site enhancements, operational improvements, and higher omnichannel engagement. The launch of our mobile app at the end of October achieved exceptional results and surpassed even our highest expectations. We drove strong adoption and excitement with elevated marketing and an exclusive product drop that sold out in just one day in the US. The Aritzia app was the most downloaded app in the entire app store on its first day. In Canada, it remains the number one shopping app for nine days straight. In the US, it was number one for four days. Total downloads to date are more than one million. far exceeding our expectations for the entire first year and reflecting the love clients have for our brand. Clients were quick to discover the value the Aritzia app provides to them, including greater access to our product assortment, styling expertise and guidance, and exclusive product and content. This is driving increased conversion and helping further fuel the momentum in our e-commerce business. we've already launched new app features and updates to elevate the client experience, with many more to come. In addition, our new international e-commerce website continued to perform well. Sales in the quarter more than doubled compared to Q3 last year. This enhanced shopping experience is already fueling higher revenue growth through increased conversions. Turning now to product, Throughout the third quarter, our assortment continued to resonate with clients across both Canada and the United States. Our fall and winter launch was exceptionally strong. We saw a positive client response across our iconic franchises, new styles, and new colors. We offered excitement through the launch of the app, including collabs and drops such as the Nike Arisia Collab and the multiple color sweat fleece drops. In addition, we remained well-positioned with the right inventory in the right place to drive sales. Our rigorous focus on inventory and the exceptional demand for our brand enabled us to deliver an improvement in the year-over-year markdown rate and higher full-price sell-through. We continue to refine our integrated marketing approach to help grow awareness, build brand affinity, and emphasize the features behind Aritzia's unique value proposition. These include our high-quality, beautiful products, our aspirational shopping environment, and our engaging client service and our captivating communication, all at attainable price points. We're reaching more and more new clients while reinforcing our connection with existing clients. This is a key contributor to the outstanding momentum in our business. In the quarter, we also continued to leverage product collaborations to introduce Arisia to new audiences. This further amplifies our brand and creates interesting moments to captivate our clients. In Q3, this included the partnership with Nike, as well as our collab with Saltonstone. Both of these created excitement and helped drive traffic online and in our boutique. As I mentioned earlier, our strong performance has continued into the fourth quarter with another record-breaking holiday period. Excellent operational execution across our three strategic growth levers, geographic expansion, digital growth, and increased brand awareness is driving sustained brand momentum and keeping Aritzia top of mind. This momentum, along with our proven operating model and healthy balance sheet, gives me immense confidence in our long-term goals for the business. As we look to fiscal 2027, we remain steadfast in further advancing our growth levers. First, our real estate strategy has continued to perform exceptionally well. We have yet another exciting pipeline of boutiques in premier locations planned for next fiscal year. we have several digital initiatives that will support continued momentum in our e-commerce channel. These include additional app features and enhancements for their digital marketing optimization and client engagement initiatives. Third, our new boutique and marketing investments are proven multi-year strategies to help grow brand awareness in the United States. We also plan to keep making strategic investments to fuel our rapid growth. This includes investments in infrastructure, such as technology and a second distribution center in the United States. As always, we will continue with a long-term focus and balance investing for the future with driving profitable growth. In closing, I'd like to thank our people for their unwavering commitment to creativity, excellence, and teamwork. Without this dedication, our incredible achievements in 2025 would not have been possible. What's even more impressive is these exceptional results came against the backdrop of significant macroeconomic challenges. Our team has set the standard for everyday luxury, and I couldn't be more proud. With that, I'll now hand it over to Todd to discuss the details of our financial performance.