Ms. Jennifer Wong reports

ARITZIA PRESENTS ITS FIVE-YEAR STRATEGIC PLAN

Aritzia Inc. has presented its five-year strategic plan, and will host an investor day today at its support office in New York, N.Y.

"Our five-year plan builds on the tremendous momentum in our business and the proven growth levers that have driven our success," said Jennifer Wong, chief executive officer. "Our United States business is delivering exceptional results and will remain our primary growth market through fiscal 2032, with substantial runway still ahead. At the same time, we will begin taking an important step toward our long-term ambition of becoming famous around the world. We believe our unique strengths, long-term mind set and much-loved everyday luxury experience position us to deliver sustained, profitable growth and enduring value for our shareholders."

As part of its strategic and financial plan, the company intends to execute on the following four strategic levers:

• Increased brand awareness: Aritzia will engage clients throughout the customer journey to bring its everyday luxury experience to a growing audience. This will drive higher brand awareness, attract new clients and deepen loyalty among existing clients.
• Geographic expansion: Aritzia plans to open 12 to 14 boutiques and reposition five to seven existing boutiques annually through fiscal 2032, driving a mid-teens CAGR (compound annual growth rate) in retail square footage. The company will capitalize on premier real estate opportunities, while expanding its geographic reach beyond Canada and the United States.
• Sustained digital growth: Aritzia is targeting North America digital net revenue of approximately $4.1-billion to $4.5-billion in fiscal 2032, representing a CAGR of approximately 20 per cent. This growth is expected to be fuelled by product expansion, continued investment in digital marketing, the introduction of a loyalty experience and continuing enhancements to the company's digital ecosystem.
• Product expansion: Aritzia will expand the breadth of its assortment to capture additional share of closet, while continuing to elevate its product across all key elements. Product expansion categories are expected to contribute approximately $1.5-billion in incremental net revenue by fiscal 2032.

Fiscal 2032 financial targets

At its investor day, the company will introduce its fiscal 2032 financial targets. Relative to its current fiscal 2027 outlook, the company expects to achieve:

• Net revenue of $9.5-billion to $10.5-billion in fiscal 2032, representing a 15-per-cent to 17-per-cent CAGR, including North America digital net revenue of approximately $4.1 to $4.5 billion, representing a CAGR of approximately 20 per cent;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of 21 per cent of net revenue by fiscal 2032, representing 100 basis points of expansion;
• EPS (earnings per share) growth to outpace revenue growth.

The foregoing financial targets reflect, among others, the following key assumptions for the period from the end of fiscal 2027 to the end of fiscal 2032:

• Total boutique count of 220 by fiscal 2032, driven by 12 to 14 new boutique openings annually in the United States;
• Five to seven repositions annually;
• Retail square footage CAGR in the mid-teens;
• Approximately double the client base by fiscal 2032;
• Capital cash expenditures (net of proceeds from lease incentives) of approximately $2-billion over the five-year period;
• 50 per cent of free cash flow returned to shareholders through approximately $2-billion of share repurchases over the five-year period;
• Taxation rates consistent with historical levels.

Investor day webcast

The investor meeting will be streamed live and can be accessed on the company's investor relations website starting at 10:15 a.m. ET and lasting until approximately 1:30 p.m. ET. A replay of the webcast will be available following the event.

About Aritzia Inc.

Beautifully made clothes. Exceptional experiences. Everyday luxury.

Aritzia is a design house with an innovative global platform. The company consists of creators and purveyors of covetable styles for every function and individual aesthetic. Aritzia is about good design, quality materials and making pieces you will wear again and again -- all with the well-being of the company's people and planet in mind.

Founded in 1984 in Vancouver, Canada, the company prides itself on creating immersive, highly personalized shopping experiences at the Aritzia website, on its app and in its 145-plus boutiques throughout North America -- for everyone, everywhere.

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