Savers Value Village (SVV) Q2 2024 earnings summary

Executive summary

• Q2 net sales rose 2.0% year-over-year to $386.7 million, with U.S. up 5.4% and Canada down 2.4%.

• Comparable store sales were flat overall, with U.S. up 2.1% and Canada down 3.1%.

• Net income was $9.7 million; Adjusted net income was $23.7 million; Adjusted EBITDA was $80.0 million (20.7% margin).

• Four new stores opened and seven acquired through the 2 Peaches acquisition, ending the quarter with 337 stores; 29 new stores planned for 2024.

• Active loyalty program members grew to 5.7 million, accounting for 71.5% of transaction value.

Financial highlights

• Net sales: $386.7 million, up 2.0% year-over-year; constant currency growth was 2.8%.

• Comparable store sales decreased 0.1%.

• Adjusted EBITDA was $80 million, with a margin of 20.7%.

• GAAP net income was $9.7 million ($0.06 per diluted share); adjusted net income was $23.7 million ($0.14 per diluted share).

• Cost of merchandise sold rose to 42.1% of net sales, reflecting new store and processing center impacts.

Outlook and guidance

• 2024 net sales outlook lowered to $1.53–$1.56 billion due to Canadian macro headwinds.

• Comparable store sales expected between -1% and +1%; U.S. up low single digits, Canada down low to mid-single digits.

• Net income guidance: $42–$56 million; adjusted net income: $82–$96 million; adjusted EBITDA: $290–$310 million.

• 29 new stores planned for 2024; capital expenditures expected at $105–$115 million.

• Net new store growth for the year will be 27 after two closures.