Aritzia Reports 2nd Quarter Fiscal 2024 Financial Results.

VANCOUVER, BC: Aritzia Inc. (TSX: ATZ) ("Aritzia", the "Company", "we" or "our"), a vertically integrated, innovative design house offering Everyday Luxury online and in its boutiques, today announced its financial results for the second quarter ended August 27, 2023 ("Q2 2024").

"Aritzia delivered second quarter net revenue of $534 million, an increase of approximately 2% on top of outstanding growth of 50% in the second quarter of Fiscal 2023 and 75% in the second quarter of Fiscal 2022. As we highlighted last quarter, we believe our top line trend is being impacted by missed opportunities in the level of new styles in our product assortment as well as a mixed consumer environment," said Jennifer Wong, Chief Executive Officer. "While our quarterly results do not meet our high standards, our performance was better than anticipated, and we made significant progress in executing against our Fiscal 2024 priorities. As planned, we opened our new Toronto area distribution centre at the end of August and meaningfully improved our inventory position."

Ms. Wong continued, "Following two years of unprecedented growth that resulted in a 39% three-year net revenue CAGR in Q2 of Fiscal 2024, we're continuing to position ourselves for the next phase of expected growth and invest in the scalability of our business. Entering the third quarter, our new styles for Fall are resonating well with our clients, and we expect our assortment to be in a strong position for Spring/Summer 2024. Our new and expanded boutiques continue to deliver better-than-expected results, which provides us confidence as we enter into a period of rapid square footage expansion, as well as continue to advance our eCommerce 2.0 strategy and re-accelerate our adjusted EBITDA1 margin."

Second Quarter Highlights

Net revenue increased 1.6% from Q2 20232 to $534.2 million, with a comparable sales growth (decline)1 of (4.3)%

United States net revenue increased 6.0% from Q2 2023 to $278.9 million, comprising 52.2% of net revenue in Q2 2024

Retail net revenue increased 3.0% from Q2 2023 to $362.0 million

eCommerce net revenue decreased 1.0% from Q2 2023 to $172.2 million, comprising 32.2% of net revenue in Q2 2024

Gross profit margin1 decreased 690 bps to 35.0% from 41.9% in Q2 2023

Net income (loss) decreased 112.9% from Q2 2023 to $(6.0) million

Adjusted EBITDA1 decreased 74.4% from Q2 2023 to $21.2 million

Net income (loss) per diluted share of $(0.05) per share, compared to $0.40 per share in Q2 2023

Adjusted Net Income per Diluted Share1 of $0.03 per share, compared to $0.44 per share in Q2 2023

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1 Certain metrics, including those expressed on an adjusted or comparable basis, are non-IFRS measures or supplementary financial measures. See "Comparable Sales and Comparable Sales Growth (Decline)", "Non-IFRS Measures and Retail Industry Metrics" and "Selected Financial Information".

2 All references in this press release to "Q2 2023" are to our 13-week period ended August 28, 2022, to "YTD 2023" are to our 26-week period ended August 28, 2022, to "YTD 2024" are to our 26-week period ended August 27, 2023, to "Fiscal 2022" are to our 52-week period ended February 27, 2022, to "Fiscal 2023" are to our 52-week period ended February 26, 2023, to "Fiscal 2024" are to our 53-week period ending March 3, 2024, to "Fiscal 2025" are to our 52-week period ending March 2, 2025, and to "Fiscal 2027" are to our 52-week period ending February 28, 2027.

Second Quarter Results Compared to Q2 2023

(Unaudited, in thousands of Canadian dollars,

unless otherwise noted)

Q2 2024

Q2 2023

Change

% of net

revenue

% of net

revenue

%

% pts

Retail net revenue

$ 362,014

...