Savers Value Village (SVV) Q3 2024 earnings summary

Executive summary

• Net sales rose 0.5% year-over-year to $394.8 million in Q3 2024, with U.S. sales up 6.2% and Canada down 7.1%; comparable store sales declined 2.4% overall, with U.S. up 1.6% and Canada down 7.5%.

• Adjusted EBITDA reached $82.0 million (20.8% margin), with net income at $21.7 million ($0.13/diluted share) and adjusted net income at $25.1 million ($0.15/diluted share).

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

• Loyalty program active members increased 11.5% to 5.8 million, accounting for 72% of sales.

• Share repurchases totaled 1.8 million shares at an average price of $9.86; $29.1 million remains authorized.

Financial highlights

• Total net sales increased 0.5% to $394.8 million; constant currency sales up 1.2%.

• Comparable store sales decreased 2.4% year-over-year; U.S. up 1.6%, Canada down 7.5%.

• U.S. net sales rose 6.2% to $212.5 million; Canada net sales fell 7.1% to $151.9 million.

• Adjusted EBITDA margin was 20.8%; operating income was $48.6 million (12.3% margin).

• Net income margin was 5.5%.

Outlook and guidance

• 2024 net sales expected at $1.53–1.54 billion; comparable store sales guidance: -1% to 0%.

• 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 planned at $105–115 million.