Savers Value Village (SVV) Q1 2025 earnings summary

Executive summary

• Net sales rose 4.5% year-over-year to $370.1 million, with constant-currency net sales up 7.1% and comparable store sales up 2.8%; U.S. net sales up 9.4%, Canada down 4.1% due to FX but up 2.2% in constant currency; two new stores opened, total now 353.

• Adjusted net income was $3.6 million ($0.02 per share); reported net loss was $4.7 million ($0.03 per share), including a $2.7 million pre-tax loss on extinguishment of debt; adjusted EBITDA was $43 million (11.6% margin).

• Loyalty program reached nearly 6 million active members, contributing to sales momentum and driving over 72% of retail sales.

• U.S. business delivered near double-digit sales growth and healthy comps, driven by increased transactions and average basket size; Canadian business showed sequential improvement, returning to positive comp for the first time since Q4 2023.

• Opened sixth centralized processing center in Southern California and expanded automated book processing to 170 stores, supporting new store growth and cost efficiencies.

Financial highlights

• Total net sales increased 4.5% to $370.1 million; constant currency net sales up 7.1%.

• U.S. net sales rose 9.4% to $210.8 million; comparable store sales up 4.2%.

• Canadian net sales declined 4.1% to $128.6 million due to FX, but constant currency sales rose 2.2%.

• Operating income was $10.4 million (2.8% of sales), down from $16.3 million (4.6%) a year ago.

• Adjusted EBITDA margin decreased to 11.6% from 16.0% year-over-year.

Outlook and guidance

• Reaffirmed full-year 2025 outlook: 25-30 new store openings, net sales of $1.61-$1.65 billion, comparable store sales growth of 0.5%-2.5%.

• Adjusted net income guidance: $62-$77 million; adjusted EBITDA: $245-$265 million; capital expenditures expected at $125-$150 million.

• Net income guidance: $36-$52 million.

• Second quarter sales growth expected to be consistent with Q1, with profit margins improving due to seasonality and store maturation.

• 2025 is a 53-week year, adding 1.5% to sales growth.