Aritzia Inc.

Thank you for standing by. This is the conference operator. Welcome to ERC's second quarter 2027 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 reach an operator by pressing star then zero. I will now turn the conference over to Beth Reed, Vice President, Investor Relations. Please go ahead.

Thanks, Operator, and thank you all for joining Aritzia's second quarter fiscal 2027 earnings call. On the call today, I'm joined by Jennifer Wong, our Chief Executive Officer, and Todd Ingledew, our Chief Financial Officer. As a reminder, Please note that remarks made 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. Thank you for joining us today. We sustained exceptional momentum in the second quarter, delivering 44% net revenue growth and a 35% increase in comparable sales. This, combined with disciplined execution and our profitability initiatives, drove a 590 basis point increase in our adjusted EBITDA margin, reaching a second quarter record of 21%. In addition, adjusted EPS more than doubled compared to last year. These results, which exclude the benefit of $97 million in tariff refunds, demonstrate the tremendous earnings power of our business model as we continue to scale. Strength was broad-based across geographies, channels, and product categories, underscoring the wide appeal of our brand. We generated high demand for our summer and fall collections and supported this with optimal inventory positioning. In addition, strategic investments in digital, real estate, and marketing continued to expand our reach. In the United States, Q2 net revenue growth accelerated to an outstanding 60%. This was fueled by widespread demand for our brand across our digital channel, existing boutiques, and new boutiques. In digital, momentum continued to build, propelled by our mobile app and full funnel marketing initiative. In our U.S. retail channel, we delivered robust double-digit comparable sales gains across our existing boutique network. In addition, we added 15 highly productive new and repositioned boutiques over the trailing 12 months, growing U.S. square footage by approximately 20%. Our performance in Canada also remained strong, with net revenue up 20%. Our growth was driven by momentum in digital, fueled by meaningful client acquisition, and greater purchase frequency. In addition, we generated double digit comparable sales growth in our Canadian retail business. Turning to our retail channel, we delivered another quarter of outstanding results. Net revenue rose 34%, marking an impressive six-quarter streak of top-line growth exceeding 30%. Comparable store sales remained exceptional, primarily driven by strong traffic gains. Our strategic marketing initiatives are working. They're building deeper brand loyalty and generating sustained demand into our boutiques. Our growth was also driven by our real estate expansion strategy, which continues to yield phenomenal results. We opened a total of 19 new and repositioned boutiques over the trailing 12 months, yielding square footage growth in the mid-teens. New store productivity and paybacks remain exceptional. In Q2, we expanded into three new markets, Birmingham, New Orleans, and St. Louis. Our bespoke boutique activations continue to yield great results, generating awareness and community engagement. This drove strong traffic and sales when we opened our doors. In addition to fueling a robust omni-channel halo effect, these boutiques are already generating highly attractive unit economics. In digital, our momentum continued to accelerate, net revenue Surge is 68% over last year, again, led by strong traffic trends. As a percentage of net revenue, digital increased nearly 500 basis points year over year. Growth was fueled by exceptional demand for our product, our strong inventory position, our mobile app, and our full funnel marketing initiatives. Balanced investments across owned and paid marketing channels continued to introduce new high-value clients to our brand and re-engage existing ones. We further enhanced our marketing tactics across existing channels while launching new channels to fuel ongoing brand awareness. Our mobile app also delivered outstanding results with sustained monthly downloads and deep client engagement. It continued to drive higher conversion, higher average monthly sessions, and repeat purchase behavior. In addition, the improvements to our international digital experience continued to pay off, with sales up 165% over last year. Turning to product, our commitment to offering high-quality styles across a diverse assortment of categories continued to drive outstanding results. Widespread demand across all regions reflected the growing love for everyday luxury and deep loyalty of our core client base. Our strong inventory position ensured we had the right product in the right place at the right time. This enabled us to fuel robust demand and achieve a meaningful year-over-year improvement in our markdown rate. Growth was driven by the combined strong performance of our new styles as well as the iconic franchises for which we're well known and loved. We drove continued client engagement from our end of summer events through to the launch of fall. Our fall collections were extremely well received across many different categories, such as t-shirts, blouses, sweat fleece, shorts, and pants, among many others. In marketing, we continued to promote our world of everyday luxury, which expanded brand awareness and drove traffic to Aritzia. This fueled another strong wave of new client acquisition. At the same time, we continued increasing loyalty and share a closet with our existing client base. Client growth was in the double digits in all channels and geography. During our FIFA World Cup campaign, we extended our styling authority into sport during this year's most watched global event. We reached new audiences through spectator styling, product placement, and paid media in host cities and key sport markets. Looking ahead, our strong momentum has continued into the third quarter. This is driven by exceptional client response to our fall product and the growing love for our brand. This quarter, we're introducing new and exciting styles and colors across cooler weather categories such as tailored outerwear, sweaters, and the super bus. Our inventory remains well positioned to support upcoming holiday demand. In our retail and digital channels, we're executing on several key initiatives to support ongoing omnichannel momentum. This fiscal year, we have a strong pipeline of 12 to 13 new boutiques in premier locations and four to five repositions. In Q3, we're on track to open six new U.S. boutiques, one each in Florida, Georgia, Massachusetts, and Nevada, and two in Texas. We're also opening two repositions, one in California and one in Quebec. Our real estate expansion strategy is a proven multi-year lever to help scale the Aritzia brand across the United States. In digital, our focus is on channel expansion and digital marketing optimization. Near-term priorities include continuing to embed AI into how we work and support clients, ongoing website enhancements, releasing new mobile app features and upgrades, honing our digital marketing tactics, and optimizing our omnichannel infrastructure. As always, we continue to strategically invest in core infrastructure to help ensure our business is built for scalable, profitable, long-term growth. This includes world-class talent to continue fueling our growth and execute on our digital and technology initiatives, as well as the expansion of our distribution center network in the US. We remain exceptionally well positioned to capitalize on our long runway for growth in the US and beyond. This opportunity is underpinned by the proven enduring strength of the Aritzia brand, our disciplined execution, and our healthy financial foundation. In closing, I'm incredibly proud of our people and their impeccable execution. This continues to differentiate Aritzia. Their commitment to delivering exceptional experiences for our clients and advancing our strategic priorities has positioned us well for the future. I look forward to sharing how we will build on this momentum and unblock our next chapter of growth at our investor day on October 27th. With that, I'll now hand it over to Todd to discuss the details of our financial performance.