Savers Value Village (SVV) Q4 2024 earnings summary

Executive summary

• Q4 results met expectations, with net sales up 5% to $402 million, driven by strong U.S. growth and sequential improvement in Canada, though Canadian sales trends remain below target.

• Nine new stores opened in Q4, totaling 351 at year-end; 25–30 new store openings planned for 2025, with the U.S. as the primary growth market.

• Loyalty program members grew 11.3% to 5.9 million, accounting for 72% of sales.

• Innovation and technology, such as automated book processing, are driving operational efficiency and cost reduction.

• Ended Q4 with a net loss of $1.9 million, but Adjusted Net Income was $15.9 million.

Financial highlights

• Q4 net sales rose 5% to $402 million; constant currency sales up 6%; comparable store sales up 1.6%.

• U.S. net sales increased 10.5% to $220 million, with comp sales up 4.7%; Canada net sales declined 2.7% (0.2% in constant currency), comp sales down 2.5%.

• Adjusted EBITDA was $74 million (18.4% margin); foreign exchange negatively impacted EBITDA by $1.1 million.

• U.S. segment profit was $49.8 million (down $1.3 million YoY); Canada segment profit was $40.3 million (down $8.7 million YoY).

• Cash and cash equivalents at year-end: $150 million.

Outlook and guidance

• 2025 guidance: 25–30 new stores, net sales of $1.61–$1.65 billion, comparable store sales up 0.5%–2.5%.

• Net income expected at $36–$52 million; Adjusted Net Income $62–$77 million; Adjusted EBITDA $245–$265 million.

• Capital expenditures projected at $125–$150 million; net interest expense ~$66 million; effective tax rate ~35%.

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

• New stores expected to be a $10 million headwind to Adjusted EBITDA in 2025, with profitability inflection expected in 2026.