Savers Value Village (SVV) Q1 2025 earnings summary

Executive summary

• Net sales rose 4.5% year-over-year to $370.1 million; constant-currency net sales up 7.1%.

• Comparable store sales increased 2.8%, with U.S. up 4.2% and Canada up 0.6% (constant currency); U.S. net sales up 9.4%, Canada down 4.1% due to FX.

• Adjusted net income was $3.6 million ($0.02/share); GAAP net loss was $4.7 million ($0.03/share), including a $2.7 million pre-tax loss on debt extinguishment.

• Opened 2 new stores, ending the quarter with 353 locations; new stores performed in line with expectations.

• Loyalty program reached nearly 6 million active members, contributing over 72% of sales.

Financial highlights

• Retail sales grew 4.1% to $350.8 million; wholesale sales up 11.6% to $19.4 million.

• Adjusted EBITDA for Q1 was $42.8 million (11.6% margin), down from 16.0% last year.

• Operating income was $10.4 million, down from $16.3 million year-over-year.

• Cost of merchandise sold as % of net sales increased 80 bps to 45.5%.

• SG&A as % of net sales increased 160 bps to 23.6%.

Outlook and guidance

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

• Adjusted net income expected at $62M–$77M ($0.37–$0.46/share); adjusted EBITDA $245M–$265M.

• Net income expected at $36M–$52M ($0.21–$0.31/share); capital expenditures $125M–$150M.

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

• Management expects sufficient liquidity for the next 12 months, with $124.1 million available under the Revolving Credit Facility.