Savers Value Village (SVV) Q3 2024 earnings summary

Executive summary

• Net sales rose 0.5% year-over-year to $394.8 million, with U.S. up 6.2% and Canada down 7.1%; constant currency net sales increased 1.2%.

• Comparable store sales declined 2.4%, with U.S. up 1.6% and Canada down 7.5%.

• Nine new stores opened in Q3, bringing the total to 344; on track for 29 new stores in 2024 and 25–30 in 2025.

• Net income was $21.7 million ($0.13 per diluted share); adjusted net income was $25.1 million ($0.15 per diluted share).

• Adjusted EBITDA reached $82.0 million (20.8% margin), with loyalty program members accounting for 72% of sales, up 11.5% to 5.8 million.

Financial highlights

• Net sales: $394.8 million (up 0.5% year-over-year); constant currency net sales: $397.3 million (up 1.2%).

• Net income: $21.7 million; adjusted net income: $25.1 million.

• Adjusted EBITDA: $82.0 million; adjusted EBITDA margin: 20.8%.

• Operating income was $48.6 million; net income margin was 5.5%.

• Cost of merchandise sold as a percentage of net sales increased 300 basis points to 43.3%.

Outlook and guidance

• 2024 net sales expected between $1.53–$1.54 billion; comparable store sales down 1% to flat.

• U.S. comps projected up low single digits; Canada down low to mid-single digits.

• Net income guidance: $44–49 million; adjusted net income: $81–86 million; adjusted EBITDA: $290–300 million.

• 29 new stores planned for 2024, including 22 organic and 7 acquired locations.

• Capital expenditures forecasted at $105–115 million.