Aritzia Reports Second Quarter Fiscal 2022 Financial Results

Published: Oct. 13, 2021 at 2:01 PM MDT

Net revenue increased by 74.9% to $350.1 million
Adjusted EBITDA increased by $60.6 million to $72.9 million

VANCOUVER, BC, Oct. 13, 2021 /PRNewswire/ - Aritzia Inc. (TSX: ATZ) "Aritzia" or the "Company"), a vertically integrated, innovative design house offering Everyday Luxury online and in its boutiques, today announced its second quarter financial results for fiscal 2022 ended August 29, 2021.

Aritzia Reports Second Quarter Fiscal 2022 Financial Results (CNW Group/Aritzia Inc.)
Aritzia Reports Second Quarter Fiscal 2022 Financial Results (CNW Group/Aritzia Inc.)

"The outstanding performance of the Aritzia brand continued through the second quarter of fiscal 2022. Our net revenue growth of 75% reflects accelerated momentum across all geographies and all channels. I am particularly excited by the unprecedented pace of growth in our business in the United States, as existing and new clients enjoy our Everyday Luxury experience on Aritzia.com and in our boutiques. Our eCommerce revenue continues to surge with 49% growth on top of the 82% growth that we saw in the second quarter last year. Sales in our boutiques were exceptional with comparable sales growth of 60% from fiscal 2021, whilst exceeding pre-pandemic levels with retail comps growing 14% from fiscal 2020," said Brian Hill, Founder, Chief Executive Officer and Chairman.

"The strength of our business across all geographies and all channels continues through the start of the third quarter. Looking ahead, expansion in the United States will be a leading driver of our growth. We are confident that eCommerce will continue to grow even on the back of 89% growth last year. Retail has surpassed our most optimistic expectations and is continuing to trend above pre-pandemic levels, now and for the foreseeable future. The performance of our new boutiques continues to outperform our expectations with significant investment focused on the United States, further fueling our brand awareness and multi-channel business. I remain incredibly grateful for the enduring loyalty of our clients and the effort of our team and their unwavering commitment to delivering Everyday Luxury," concluded Mr. Hill.

Second Quarter Highlights

  • Net revenue increased by 74.9% to $350.1 million from Q2 2021 and 45.1% from Q2 2020
  • eCommerce revenue increased by 48.7% to $130.4 million from Q2 2021 and 171.1% from Q2 2020, comprising 37.3% of net revenues in Q2 2022
  • Retail revenue increased by 95.3% to $219.6 million from Q2 2021 and 13.8% from Q2 2020, achieving double digit comparable sales growth compared to pre-COVID Q2 2020
  • Gross profit margin(1) increased to 44.6% from 35.2% in Q2 2021 and 39.6% in Q2 2020
  • Adjusted EBITDA(1) increased to $72.9 million from $12.3 million in Q2 2021 and $36.4 million in Q2 2020
  • Adjusted Net Income(1) of $0.39 per diluted share, compared to $0.01 per diluted share in Q2 2021 and $0.18 per diluted share in Q2 2020

(1)

Unless otherwise indicated, all amounts are expressed in Canadian dollars. The Company's second quarter results include the consolidation of CYC Design Corporation ("CYC") from the close of the transaction on June 25, 2021. Due to the material impact of COVID-19 on business operations in fiscal 2021 and 2022, certain references to Q2 2020 and YTD 2020 have been included where Management deems to be a more meaningful measurement of the Company's performance. Certain metrics, including those expressed on an adjusted or comparable basis, are non-IFRS measures. See "Non-IFRS Measures including Retail Industry Metrics" and "Selected Consolidated Financial Information".  

Second Quarter Results Compared to Q2 2021

(in thousands of Canadian dollars,
unless otherwise noted)

Q2 2022

13 weeks

Q2 2021

13 weeks

Variance

Q2 2022 to Q2 2021









%

% pts

eCommerce Revenue

$

130,430

37.3%

$

87,699

43.8%


48.7%


Retail Revenue


219,639

62.7%


112,456

56.2%


95.3%












Net revenue


350,069

100.0%


200,155

100.0%


74.9%












Gross profit


156,196

44.6%


70,436

35.2%


121.8%

9.4%











SG&A


92,115

26.3%


60,151

30.1%


53.1%

(3.8%)











Adjusted EBITDA(1)

$

72,891

20.8%

$

12,274

6.1%


493.9%

14.7%











Adjusted Net Income(1) 

$

0.39


$

0.01



4,093.9%


per diluted share











Net revenue increased by 74.9% to $350.1 million, compared to $200.2 million in Q2 2021. The Company has seen an unprecedented acceleration of sales in the United States, where net revenues increased by 152.0% to C$146.4 million, compared to C$58.1 million in Q2 2021.

  • eCommerce revenue increased by 48.7% to $130.4 million, compared to $87.7 million in Q2 2021. The Company's eCommerce business continued its momentum, building on the 82.3% increase in Q2 2021.
  • Retail revenue increased by 95.3% to $219.6 million, compared to $112.5 million in Q2 2021. The increase in revenue was primarily driven by the Company's boutiques exceeding pre-pandemic revenue levels in both Canada and the United States. During the quarter, the Company opened two new boutiques in the United States. Store count at the end of Q2 totaled 104 compared to 97 boutiques at the end of Q2 2021.

Gross profit increased by 121.8% to $156.2 million, compared to $70.4 million in Q2 2021. Gross profit margin was 44.6%, compared to 35.2% in Q2 2021. Compared to Q2 2021, the improvement in gross profit margin was primarily due to leverage on occupancy costs, lower markdowns and the strengthening of the Canadian dollar, partially offset by lower rent abatements and higher expedited freight.

Selling, general and administrative ("SG&A") expenses increased by 53.1% to $92.1 million, compared to $60.2 million in Q2 2021. SG&A expenses were 26.3% of net revenue, compared to 30.1% in Q2 2021. Excluding the benefit of government payroll subsidies in Q2 2021, the increase in SG&A was 33.3%. This increase was primarily due to variable selling costs associated with the increase in revenue and continued investment in talent.

Adjusted EBITDA(1) was $72.9 million, or 20.8% of net revenue, compared to $12.3 million, or 6.1% of net revenue in Q2 2021.

Net income (loss) was $39.8 million, compared to $(0.9) million in Q2 2021.

Adjusted Net Income(1) was $44.4 million, compared to $1.0 million in Q2 2021.

Adjusted Net Income(1) per diluted share was $0.39, compared to $0.01 in Q2 2021.

Cash and cash equivalents at the end of Q2 totaled $131.8 million compared to $207.3 million at the end of Q2 2021. In the last twelve months the Company has repaid $100.0 million drawn from the Company's revolving credit facility, its $75.0 million term loan and funded the acquisition of CYC for $32.9 million. The Company currently has zero drawn on its revolving credit facility.

Inventory at the end of Q2 was $181.9 million, compared to $140.9 million at the end of Q2 2021. The Company continues to maintain a healthy inventory position despite global supply chain constraints.

Capital cash expenditures (net of proceeds from leasehold inducements) were $9.3 million, compared to $10.6 million in Q2 2021.

YTD 2022 Compared to YTD 2021

(in thousands of Canadian dollars,
unless otherwise noted)

YTD 2022

26 weeks

YTD 2021

26 weeks

Variance

YTD 2022 to YTD 2021









%

% pts

eCommerce Revenue

$

234,394

39.3%

$

175,327

56.3%


33.7%


Retail Revenue


362,591

60.7%


136,217

43.7%


166.2%












Net revenue


596,985

100.0%


311,544

100.0%


91.6%












Gross profit


265,304

44.4%


83,497

26.8%


217.7%

17.6%











SG&A


162,497

27.2%


103,662

33.3%


56.8%

(6.1%)











Adjusted EBITDA(1)

$

113,793

19.1%

$

(12,958)

(4.2%)


978.2%

23.3%











Adjusted Net Income (Loss) (1) 

$

0.57


$

(0.22)



362.2%


per diluted share











Net revenue increased by 91.6% to $597.0 million, compared to $311.5 million in YTD 2021. The Company has seen an unprecedented acceleration of sales in the United States, where net revenues increased by 172.9% to C$260.6 million, compared to C$95.5 million in YTD 2021.

Gross profit increased by 217.7% to $265.3 million, compared to $83.5 million in YTD 2021. Gross profit margin was 44.4% compared to 26.8% in YTD 2021. Compared to YTD 2021, the improvement in gross profit margin was primarily due to leverage on fixed costs, lower markdowns and the strengthening of the Canadian dollar.

SG&A expenses increased by 56.8% to $162.5 million, compared to $103.7 million in YTD 2021. SG&A expenses were 27.2% of net revenue compared to 33.3% of net revenue in YTD 2021. Excluding the benefit of government payroll subsidies in YTD 2021, the increase in SG&A was 29.7%. This increase was primarily due to variable selling costs associated with the increase in revenue and continued investment in talent.

Adjusted EBITDA(1) was $113.8 million, or 19.1% of net revenue, compared to $(13.0) million, or (4.2%) of net revenue in YTD 2021.

Net income (loss) was $57.8 million, compared to $(27.3) million in YTD 2021.

Adjusted Net Income (loss)(1) was $66.1 million, compared to $(24.0) million in YTD 2021.

Adjusted Net Income (loss)(1) per diluted share was $0.57, compared to $(0.22) for the YTD 2021.

(1)

See "Non-IFRS Measures including Retail Industry Metrics" and "Selected Consolidated Financial Information" below, including for a reconciliation of the non-IFRS measures used in this release to the most comparable IFRS measures. See also sections entitled "How We Assess the Performance of our Business", "Non-IFRS Measures including Retail Industry Metrics" and "Selected Consolidated Financial Information" in the Management's Discussion and Analysis for further details concerning Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per diluted share and free cash flow including definitions and reconciliations to the relevant reported IFRS measure.

Outlook

Consistent with its communication throughout the pandemic, the Company is providing an update for the third quarter and its fiscal 2022 outlook. Third quarter net revenues are anticipated to be in the range of $350 million to $375 million, this is in spite of supply chain disruptions, labour shortages, and the ongoing indirect effects of COVID-19.

While the supply chain disruptions are meaningful, the Company is doing its best to mitigate the impacts through its geographically diversified supply chain, strategic inventory management and the use of expedited freight. As a result of these mitigation strategies, the Company believes it has the inventory levels to deliver on or exceed its revenue targets for the remainder of the year. In addition, the Company is not immune to the current labour shortages, however, Aritzia remains competitive given its employment brand, leading compensation, and energizing workplace environments help ensure it attracts the needed talent.

Taking everything into consideration, Aritzia has increased its net revenue outlook for the remainder of fiscal 2022. The Company currently expects the following for fiscal 2022:

  • Net revenue in the range of $1.25 billion to $1.30 billion, implying an increase of 45% to 50% from fiscal 2021, up from the Company's previous outlook of $1.15 billion to $1.20 billion. The anticipated increase is led by sustained momentum in the United States, continued growth in the Company's eCommerce business, the strength in the Company's retail performance, as well as contribution from its geographic expansion with:
  • Gross profit margin to be consistent with pre-pandemic levels in fiscal 2020 in the third and fourth quarter, reflecting leverage on fixed costs and the strengthening Canadian dollar, offset by the impact of meaningfully higher expedited freight costs, increased warehousing and Distribution Centre costs and continued investment in talent to drive the Company's expansion strategy;
  • SG&A as a percent of net revenue to increase in the third and fourth quarter, slightly above the increase in the second quarter relative to pre-pandemic levels in fiscal 2020 as accelerated investments in people, processes and technology more than offset the leverage on fixed costs.
  • Net capital expenditures in the range of $55 million to $60 million, comprised primarily of investments in boutique network growth and ongoing investments in technology and its Distribution Centre network.

In addition to Aritzia's outlook above, Reigning Champ is expected to deliver approximately $14 million in net revenue and $3 million in Adjusted EBITDA(1) in the second half of fiscal 2022.

Conference Call Details

A conference call to discuss the Company's second quarter results is scheduled for Wednesday, October 13, 2021, at 1:30 p.m. PT / 4:30 p.m. ET. To participate, please dial 1-800-319-4610 (North America toll-free) or 1-416-915-3239 (Toronto and overseas long-distance). The call is also accessible via webcast at http://investors.aritzia.com/events-and-presentations/. A recording will be available shortly after the conclusion of the call. To access the replay, please dial 1-855-669-9658 and the access code 7778. An archive of the webcast will be available on Aritzia's website.

About Aritzia

Aritzia is a vertically integrated design house with an innovative global platform. We are creators and purveyors of Everyday Luxury, home to an extensive portfolio of exclusive brands for every function and individual aesthetic. We're about good design, quality materials and timeless style — all with the wellbeing of our people and planet in mind.

Founded in 1984, in Vancouver, Canada, we pride ourselves on creating immersive, and highly personal shopping experiences at aritzia.com and in our 100+ boutiques throughout North America to everyone, everywhere.

Everyday Luxury. To elevate your world.TM

Comparable Sales Growth

Comparable sales growth is typically a useful operating metric in assessing the performance of the Company's business. However, as the temporary boutique closures from COVID-19 have resulted in boutiques being removed from its comparable store base, the Company believes comparable sales growth is not currently representative of its business and therefore the Company has not reported figures on this metric in this press release.

Non-IFRS Measures including Retail Industry Metrics

This press release makes reference to certain non-IFRS measures including certain retail industry metrics. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including "EBITDA", "Adjusted EBITDA", "Adjusted Net Income", "Adjusted Net Income per diluted share", and "gross profit margin". This press release also makes reference to "comparable sales growth", which is a commonly used operating metric in the retail industry but may be calculated differently compared to other retailers. These non-IFRS measures including retail industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures including retail industry metrics in the evaluation of issuers. Our management also uses non-IFRS measures including retail industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our MD&A. Such reconciliations can also be found in this press release under the heading "Selected Consolidated Financial Information".

Forward-Looking Information

Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our future financial outlook and anticipated events or results and include, our ability to sustain momentum in our business and advance our strategic growth drivers, continued growth in eCommerce and retail sales trending above pre-pandemic levels for the foreseeable future, the Company's response to mitigate anticipated supply chain disruptions and labour shortages, our outlook for: (i) net revenue in the third quarter of fiscal 2022, (ii) net revenue in fiscal 2022, (iii) gross profit margin in fiscal 2022, (iv) SG&A as a percent of net revenue in fiscal 2022, (v) net capital expenditure in fiscal 2022, (vi) new boutiques and expansion or repositioning of existing boutiques in fiscal 2022 and (vii) Reigning Champ's net revenue and Adjusted EBITDA contribution in second half of fiscal 2022.  Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology.

Implicit in forward-looking statements in respect of the Company's expectations for: (i) net revenue in the range of $350 million to $375 million for the third quarter, (ii) net revenue in the range of $1.25 billion to $1.30 billion in fiscal 2022, implying an increase of approximately 45% to 50% from fiscal 2021, (iii) Gross profit margin consistent with pre-pandemic levels in fiscal 2020 for the third and fourth quarter of fiscal 2022, (iv) SG&A as a percent of net revenue to increase in the third and fourth quarter of fiscal 2022, slightly above the increase in the second quarter relative to pre-pandemic levels in fiscal 2020 (v) net capital expenditures in the range of $55 million to $60 million and (vi) Reigning Champ's net revenue and adjusted EBITDA contribution in the second half of fiscal 2022, are certain current assumptions including the continued growth in eCommerce and retail sales trending above pre-pandemic levels for the foreseeable future. The Company's forward-looking information is also based upon assumptions regarding the overall retail environment, the COVID-19 pandemic and related health and safety protocols and currency exchange rates for fiscal 2022. Specifically, we have assumed the following exchange rates for fiscal 2022: USD:CAD = 1:1.28.

Given this unprecedented period of uncertainty, there can be no assurances regarding: (a) the limitations or restrictions that may be placed on servicing our clients in reopened boutiques or potential re-closing of boutiques; (b) the COVID-19-related impacts on Aritzia's business, operations, supply chain performance and growth strategies, (c) Aritzia's ability to mitigate such impacts, including ongoing measures to enhance short-term liquidity, contain costs and safeguard the business; (d) general economic conditions related to COVID-19 and impacts to consumer discretionary spending and shopping habits; (e) credit, market, currency, interest rates, operational, and liquidity risks generally; and (f) other risks inherent to Aritzia's business and/or factors beyond its control which could have a material adverse effect on the Company.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's annual information form dated May 11, 2021 for the fiscal year ended February 28, 2021 (the "AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.

The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date.  However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Selected Consolidated Financial Information

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of Canadian Dollars,
unless otherwise noted)

Q2 2022

13 Weeks

Q2 2021

13 Weeks

Q2 2020

13 Weeks

YTD 2022

26 Weeks

YTD 2021

26 Weeks

YTD 2020

26 Weeks








Net revenue

$

350,069

100.0%

$

200,155

100.0%

$

241,178

100.0%

$

596,985

100.0%

$

311,544

100.0%

$

437,877

100.0%

Cost of goods sold


193,873

55.4%


129,719

64.8%


145,751

60.4%


331,681

55.6%


228,047

73.2%


256,889

58.7%




















Gross profit


156,196

44.6%


70,436

35.2%


95,427

39.6%


265,304

44.4%


83,497

26.8%


180,988

41.3%




















Operating expenses



















Selling, general and administrative


92,115

26.3%


60,151

30.1%


60,567

25.1%


162,497

27.2%


103,662

33.3%


114,996

26.3%

Stock-based compensation  


8,262

2.4%


2,147

1.1%


1,942

0.8%


11,297

1.9%


3,126

1.0%


4,316

1.0%

expense




















Income (loss) from operations


55,819

15.9%


8,138

4.1%


32,918

13.6%


91,510

15.3%


(23,291)

(7.5%)


61,676

14.1%

Finance expense


6,516

1.9%


7,355

3.7%


7,157

3.0%


12,950

2.2%


14,745

4.7%


14,384

3.3%

Other (income) expense


(7,161)

(2.0%)


1,345

0.7%


664

0.3%


(3,305)

(0.6%)


127

0.0%


(615)

(0.1%)




















Income (loss) before income


56,464

16.1%


(562)

(0.3%)


25,097

10.4%


81,865

13.7%


(38,163)

(12.2%)


47,907

10.9%

taxes

Income tax expense (recovery)


16,616

4.7%


312

0.2%


7,177

3.0%


24,114

4.0%


(10,818)

(3.5%)


13,831

3.2%




















Net income (loss)

$

39,848

11.4%

$

(874)

(0.4%)

$

17,920

7.4%

$

57,751

9.7%

$

(27,345)

(8.8%)

$

34,076

7.8%




















Other Performance Measures:



















Year-over-year net revenue


74.9%



(17.0%)



17.4%



91.6%



(28.9%)



17.6%


growth (decline)

Comparable sales growth(i)


n/a



n/a



8.4%



n/a



n/a



8.2%


Capital cash expenditures (net of

$

9,333


$

10,586


$

6,420


$

15,855


$

22,731


$

15,321


proceeds from leasehold
inducements)

Free cash flow

$

76,742


$

(15,200)


$

(1,137)


$

88,675


$

(7,145)


$

15,780


Number of boutiques, end of


104



97



93



104



97



93


period


Note:

(i) Please see the "Comparable Sales Growth" section above for more details.

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)

(In thousands of Canadian dollars,
unless otherwise noted)

Q2 2022

13 weeks

Q2 2021

13 weeks

Q2 2020

13 weeks

YTD 2022

26 weeks

YTD 2021

26 weeks

YTD 2020

26 weeks








Reconciliation of Net Income (Loss)
to EBITDA and Adjusted EBITDA:







Net income (loss)

$ 39,848

$ (874)

$ 17,920

$ 57,751

$ (27,345)

$ 34,076

Depreciation and amortization

10,780

9,450

7,995

21,221

18,815

16,833

Depreciation on right-of-use-assets

16,686

16.586

14,671

33,004

33,034

29,031

Finance expense

6,516

7,355

7,157

12,950

14,745

14,384

Income tax expense

16,616

312

7,177

24,114

(10,818)

13,831








EBITDA

90,446

32,829

54,920

149,040

28,431

108,155








Adjustments to EBITDA:







Stock-based compensation expense

8,262

2,147

1,942

11,297

3,126

4,316

Rent impact from IFRS 16, Leases(i) 

(22,302)

(22,621)

(20,490)

(44,247)

(45,230)

(40,720)

Unrealized (gain) loss on equity
derivatives contracts

(5,342)

(81)

-

(5,236)

715

-

Acquisition costs of CYC

1,747

-

-

2,409

-

-

Secondary offering transaction costs

80

-

-

530

-

-








Adjusted EBITDA

$ 72,891

$ 12,274

$ 36,372

$ 113,793

$ (12,958)

$ 71,751

Adjusted EBITDA as a percentage
of net revenue

20.8%

6.1%

15.1%

19.1%

(4.2%)

16.4%








Reconciliation of Net Income (Loss)
to Adjusted Net Income (Loss):







Net income (loss)

$ 39,848

$ (874)

$ 17,920

$ 57,751

$ (27,345)

$ 34,076

Adjustments to net income (loss):







Stock-based compensation
expense

8,262

2,147

1,942

11,297

3,126

4,316

Unrealized (gain) loss on equity
derivatives contracts

(5,342)

(81)

-

(5,236)

715

-

Acquisition costs of CYC

1,747

-

-

2,409

-

-

Secondary offering transaction
costs

80

-

-

530

-

-

Related tax effects

(184)

(158)

(105)

(689)

(456)

(151)

Adjusted Net Income (Loss)

$ 44,411

$ 1,034

$ 19,757

$ 66,062

$ (23,960)

$ 38,241

Adjusted Net Income (Loss) as a
percentage of net revenue

12.7%

0.5%

8.2%

11.1%

(7.7%)

8.7%

Weighted average number of
diluted shares outstanding (thousands)

115,265

112,550

111,537

115,008

109,375

111,696

Adjusted Net Income (Loss) per
diluted share

$ 0.39

$ 0.01

$ 0.18

$ 0.57

$ (0.22)

$ 0.34



Note:

(i) Rent Impact from IFRS 16, Leases

(In thousands of Canadian dollars,
unless otherwise noted)

Q2 2022
13 weeks

Q2 2021

13 weeks

Q2 2020

13 weeks

YTD 2022
26 weeks

YTD 2021
26 weeks

YTD 2020
26 weeks








Depreciation and amortization of right-

$ (16,686)

$ (16,586)

$ (14,671)

$ (33,004)

$ (33,034)

$ (29,031)

of-use assets

Finance expense, related to leases

(5,616)

(6,035)

(5,819)

(11,243)

(12,196)

(11,689)








Rent impact from IFRS 16, Leases

$ (22,302)

$ (22,621)

$ (20,490)

$ (44,247)

$ (45,230)

$ (40,720)

CONDENSED INTERIM CONSOLIDATED CASH FLOWS

(In thousands of Canadian dollars,
unless otherwise noted)

Q2 2022

13 weeks

Q2 2021

13 weeks

Q2 2020

13 weeks

YTD 2022

26 weeks

YTD 2021

26 weeks

YTD 2020

26 weeks

Cash Flows:







Net cash generated from operating

$    108,003

$    11,585

$    24,578

$   137,658

$    35,564

$    65,257

activities

Net cash (used in) generated from 

(91,320)

(14,212)

(17,943)

(98,889)

82,097

(113,942)

financing activities

Net cash used in investing activities

(46,101)

(13,166)

(11,971)

(56,506)

(27,046)

(22,137)

Effect of exchange rate changes on

3,336

(1,266)

(435)

386

(1,111)

(89)

cash and cash equivalents








Change in cash and cash equivalents

$   (26,082)

$    (17,059)

$     (5,771)

$   (17,351)

$    89,504

$   (70,911)

FREE CASH FLOW

(In thousands of Canadian dollars,
unless otherwise noted)

Q2 2022

13 weeks

Q2 2021

13 weeks

Q2 2020

13 weeks

YTD 2022

26 weeks

YTD 2021

26 weeks

YTD 2020

26 weeks

Net cash generated from operating

$ 108,003

$  11,585

$  24,578

$ 137,658

$  35,564

$  65,257

activities

Interest paid

578

1,101

1,154

1,353

2,396

2,372

Net cash used in investing activities

(13,546)

(13,166)

(11,971)

(23,951)

(27,046)

(22,137)

(purchase of property and
equipment and intangible assets)

Repayments of principal on lease

(18,293)

(14,720)

(14,898)

(26,385)

(18,059)

(29,712)

liabilities








Free cash flow

$  76,742

$ (15,200)

$   (1,137)

$   88,675

$ (7,145)

$ 15,780

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands of Canadian dollars)


As at
August 29, 2021


As at
February 28, 2021


As at
August 30, 2020

Assets







Cash and cash equivalents


$ 131,796


$ 149,147


$ 207,254

Accounts receivable


7,835


6,202


3,832

Income taxes recoverable


3,307


4,719


7,953

Inventory


181,929


171,821


140,861

Prepaid expenses and other current assets


28,700


23,452


28,274

Total current assets


353,567


355,341


388,174

Property and equipment


201,527


189,568


187,395

Intangible assets


88,287


62,049


62,691

Goodwill


198,322


151,682


151,682

Right-of-use assets


381,134


363,417


396,135

Other assets


4,860


2,886


3,807

Deferred tax assets


17,200


15,794


18,568

Total assets


$ 1,244,897


$ 1,140,737


$ 1,208,452








Liabilities







Bank indebtedness


$                -


$                -


$ 100,000

Accounts payable and accrued liabilities


147,219


131,893


122,317

Income taxes payable


15,889


8,287


-

Current portion of contingent consideration


6,619


-


-

Current portion of lease liabilities


85,519


71,452


84,273

Deferred revenue


40,667


37,563


31,731

Total current liabilities


295,913


249,195


338,321

Lease liabilities


439,508


423,380


460,170

Other non-current liabilities


16,935


15,059


11,395

Contingent consideration


6,618


-


-

Non-controlling interest in exchangeable shares liability


33,500


-


-

Deferred tax liabilities


26,669


17,985


16,147

Long-term debt


-


74,855


74,797

Total liabilities


819,143


780,474


900,830








Shareholders' equity







Share capital


234,730


228,665


221,245

Contributed surplus


58,123


56,606


58,198

Retained earnings


132,967


75,216


28,645

Accumulated other comprehensive loss


(66)


(224)


(466)

Total shareholders' equity


425,754


360,263


307,622

Total liabilities and shareholders' equity


$ 1,244,897


$ 1,140,737


$ 1,208,452

BOUTIQUE COUNT SUMMARY


Q2 2022

13 weeks

Q2 2021

13 weeks

YTD 2022

26 weeks

YTD 2021

26 weeks






Number of boutiques, beginning of period

102

97

101

96

New boutiques

2

-

3

1

Number of boutiques, end of period

104

97

104

97

Boutiques expanded or repositioned

1

1

1

1

Aritzia Reports Second Quarter Fiscal 2022 Financial Results (CNW Group/Aritzia Inc.)
Aritzia Reports Second Quarter Fiscal 2022 Financial Results (CNW Group/Aritzia Inc.)
Aritzia Inc. logo (CNW Group/Aritzia Inc.)
Aritzia Inc. logo (CNW Group/Aritzia Inc.)

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SOURCE Aritzia Inc.

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