You are the CFO of an investment firm. Evaluate twocompanies (Aritzia and Lululemon) and make a recommendation to the Board which company (either one, both or none) the firm should invest in. Keep the use of ratios to a maximum of 5 and your comment and recommendation to less than 150 words) The objective is to show your ability to perform a comprehensive analysis on a set of financial statements. Use the latest annual and quarterly financial statements for both companies to perform the analysis. Hint: Evaluation using common-size percentages for sales, gross profit, operating income, etc. Evaluate and compare companys ability to sell inventory (i.e. turnover) Evaluate and compare companys cash flows. Evaluate market price for both companies and compare it to book value (overpriced?)Based on an overall analysis (qualitative and quantitative), make your recommendation.

: Seine CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Aritzia Inc. Condensed Interim Consolidated Statements of Operations Ouuntains Team Em A. A AL A For the 13-week and 26-week periods ended August 29, 2021 and August 30, 2020 26: 2 23 14 5555 DO 114 () (Unaudited, in thousands of Canadian dollars, except number of shares and per share amounts) 14.00 -2133 BE Teing I KONIERES 5429 3521 183 2. 3 170 14 HL 13-week periods ended 26-week periods ended RE 2003 1944 GE CERE 36 B 23 mi : August 29 August 30, August 29, August 30, Note 2 S24 -16 . 2021 2020 2021 2020 25 12 3 301 . 2001 Net revenue 17. 205 350,069 200, 156 $ 596,985 s 311,544 Cost of goods sold 1. 18 193,873 129,719 331,681 COM 228,047 Gross profit 156,196 70,436 266,304 83 407 Sven 13 54 28 COMEN $ 10 Operating expenses 13: 011 1 Selling General and administrative 009 92,115 60,151 162,497 103,662 III OBES 2705 011 Stock-based compensation expenso 15, 18 8,262 2,147 11,297 3.120 esit 300.00 5:32241 2004 Income (loss) from operations 55,819 8.138 91,510 (23291) 200.00 2 lululemon athletica Finance expense 9, 18 6,516 7355 12,960 14745 13.18 Other (incomo) expense CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (7.161 1,345 (3,306) 127 za-sangrhcausal - Ah Income (10ss) before income taxes 56,464 (562) 81,865 38 183) Der Erde uges, haaaaa tast Carmen Sack Siding Stock 19 Income tax expense (recovery) 16,616 312 24,114 (10.810) Acara Ameer Net income (loss) 5 39,848 $ (874) 5 57,761 $ 27 345) Sures Sharm ww Shares Para Called Earnings Ford Comprensive Loss 22041 120350 750095 S 30 $ 2005 22.00 2000 Net income floss) per share FOR Basic 16 $ 0.36 5 (001) $ 0.62 S (0.25) at Diluted 16 $ Borges 0.36 $ (0.01) 0.50 (025) er 33232 NA Weighted average number of 99 525 shares outstanding (thousands) NIM Basic 16 110,167 109,396 110,109 109,375 et de Diluted 16 116.265 109,396 115,000 1 293 109 375 601 D 39 0923 rokas uus 2020 1200 3.2015 25$ 123S 307975 2451 27201 Condensed Interim Consolidated Statements of Comprehensive Income (Loss) For the 13-vakand 20- vuk periode enced August 20 2021 and Aups: 30.2020 (Uradited in thousands of Canadian Dollars Quande uge 22 13-week periods ended 26-week period ended Enlarget al Social Vinyek Cock August 20 August 30 August 30 August 29 Assed AR Sus Share Para 2021 2020 2021 | Futha Congrelerdir Loss 2020 S., 3310 5082 3.3% 301L170612 2015 on Net income loss) $ 39.848 8080 1874 $ 67.761 S 27.345 31.300 Other comprehensive income Corror agar The theory brused change of crasgabe za 12 1877 22 - subsequently to net income Gerson 2598 Foreign currency transition dem 254 700 150 215 Ono stimo Comprehensive income (losa) $ 40 102 S7 300 27.1291 enerte 12 2123 Barth Aritzia Inc. w . 392 Condensed Interim Consolidated Statements of Changes in Shareholders' Equity Arceau A2 2020 5348 1210175 350 ILI! 16720185 23001 For the 2-week penos ended August 20, 2021 and August 30, 2020 lukemon athletica ing Unautes. In thousands of Canadian dolor, except number of shares) CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY U ARE utile Sale QEnded Aug 1, 2421 vog vilgshares Acom other Total Contri Rwbred carpet sharsholdere Earpate it Specialty Sed Can share Amount mount plus coming 081 SUITY Add Accedi Balance March 2000 45971 12121 ST2311 2015 B1 Cape Vam Predam Corsetans 13 1025 2.212: 3.2003 1250 16443S 2.226 1335. Opis 16041 2017 COM T9 02 19 2585 25 Seed to care no MA 45 57 based come PM 206 246 1992 Balanc, August 30,990 ST IT712 1991 2015 SA 21 5959 chand Balance, February 21, 2021 24.501,341 11.731 19,416.4 210,9285 S.GOGS 19.216 1236 360 25 523 . where 15 TIT 9.21 6,05 5.969 2.96 fo Back S24 agaytadan 15 2953 Share 13 2602001 345 1.57 21 2.000.000 20 923 5300 23 12171 46.255 252013 Balance August 23, 2021 31.07.141 10 14133 2017 $24.23 1927 135,794 Aritzia Inc - 3 : Seine CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Aritzia Inc. Condensed Interim Consolidated Statements of Operations Ouuntains Team Em A. A AL A For the 13-week and 26-week periods ended August 29, 2021 and August 30, 2020 26: 2 23 14 5555 DO 114 () (Unaudited, in thousands of Canadian dollars, except number of shares and per share amounts) 14.00 -2133 BE Teing I KONIERES 5429 3521 183 2. 3 170 14 HL 13-week periods ended 26-week periods ended RE 2003 1944 GE CERE 36 B 23 mi : August 29 August 30, August 29, August 30, Note 2 S24 -16 . 2021 2020 2021 2020 25 12 3 301 . 2001 Net revenue 17. 205 350,069 200, 156 $ 596,985 s 311,544 Cost of goods sold 1. 18 193,873 129,719 331,681 COM 228,047 Gross profit 156,196 70,436 266,304 83 407 Sven 13 54 28 COMEN $ 10 Operating expenses 13: 011 1 Selling General and administrative 009 92,115 60,151 162,497 103,662 III OBES 2705 011 Stock-based compensation expenso 15, 18 8,262 2,147 11,297 3.120 esit 300.00 5:32241 2004 Income (loss) from operations 55,819 8.138 91,510 (23291) 200.00 2 lululemon athletica Finance expense 9, 18 6,516 7355 12,960 14745 13.18 Other (incomo) expense CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (7.161 1,345 (3,306) 127 za-sangrhcausal - Ah Income (10ss) before income taxes 56,464 (562) 81,865 38 183) Der Erde uges, haaaaa tast Carmen Sack Siding Stock 19 Income tax expense (recovery) 16,616 312 24,114 (10.810) Acara Ameer Net income (loss) 5 39,848 $ (874) 5 57,761 $ 27 345) Sures Sharm ww Shares Para Called Earnings Ford Comprensive Loss 22041 120350 750095 S 30 $ 2005 22.00 2000 Net income floss) per share FOR Basic 16 $ 0.36 5 (001) $ 0.62 S (0.25) at Diluted 16 $ Borges 0.36 $ (0.01) 0.50 (025) er 33232 NA Weighted average number of 99 525 shares outstanding (thousands) NIM Basic 16 110,167 109,396 110,109 109,375 et de Diluted 16 116.265 109,396 115,000 1 293 109 375 601 D 39 0923 rokas uus 2020 1200 3.2015 25$ 123S 307975 2451 27201 Condensed Interim Consolidated Statements of Comprehensive Income (Loss) For the 13-vakand 20- vuk periode enced August 20 2021 and Aups: 30.2020 (Uradited in thousands of Canadian Dollars Quande uge 22 13-week periods ended 26-week period ended Enlarget al Social Vinyek Cock August 20 August 30 August 30 August 29 Assed AR Sus Share Para 2021 2020 2021 | Futha Congrelerdir Loss 2020 S., 3310 5082 3.3% 301L170612 2015 on Net income loss) $ 39.848 8080 1874 $ 67.761 S 27.345 31.300 Other comprehensive income Corror agar The theory brused change of crasgabe za 12 1877 22 - subsequently to net income Gerson 2598 Foreign currency transition dem 254 700 150 215 Ono stimo Comprehensive income (losa) $ 40 102 S7 300 27.1291 enerte 12 2123 Barth Aritzia Inc. w . 392 Condensed Interim Consolidated Statements of Changes in Shareholders' Equity Arceau A2 2020 5348 1210175 350 ILI! 16720185 23001 For the 2-week penos ended August 20, 2021 and August 30, 2020 lukemon athletica ing Unautes. In thousands of Canadian dolor, except number of shares) CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY U ARE utile Sale QEnded Aug 1, 2421 vog vilgshares Acom other Total Contri Rwbred carpet sharsholdere Earpate it Specialty Sed Can share Amount mount plus coming 081 SUITY Add Accedi Balance March 2000 45971 12121 ST2311 2015 B1 Cape Vam Predam Corsetans 13 1025 2.212: 3.2003 1250 16443S 2.226 1335. Opis 16041 2017 COM T9 02 19 2585 25 Seed to care no MA 45 57 based come PM 206 246 1992 Balanc, August 30,990 ST IT712 1991 2015 SA 21 5959 chand Balance, February 21, 2021 24.501,341 11.731 19,416.4 210,9285 S.GOGS 19.216 1236 360 25 523 . where 15 TIT 9.21 6,05 5.969 2.96 fo Back S24 agaytadan 15 2953 Share 13 2602001 345 1.57 21 2.000.000 20 923 5300 23 12171 46.255 252013 Balance August 23, 2021 31.07.141 10 14133 2017 $24.23 1927 135,794 Aritzia Inc - 3