SVV

Savers Value Village Q1 Report – Net Sales Up 2.5%

Savers Value Village, Inc. has recently released its 10-Q report, providing a detailed look into its operations. The company, which was founded in 1954 and is based in Bellevue, Washington, operates as a for-profit thrift operator in the United States, Canada, and Australia. It runs a total of 326 stores under various banners, including Savers, Value Village, and Unique, and is committed to redefining secondhand shopping by offering a range of low-priced merchandise, including clothing, home goods, and accessories.

In the first quarter of 2024, Savers Value Village reported a net sales increase of 2.5% to $354.2 million. The company's comparable store sales grew by 0.3%, with the U.S. showing a 2.3% increase and Canada experiencing a 2.6% decrease. The sales yield also increased by 1.4% to $1.41 per pound. However, the company reported a net loss of $0.5 million, or $0.00 per diluted share. Adjusted net income increased by 32.3% to $13.9 million, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increasing by 2.1% to $60.3 million.

Savers Value Village ended the first quarter with 326 stores, marking a 2.8% increase in its store count. Additionally, the company saw a 12.2% rise in total active members enrolled in its U.S. and Canadian loyalty programs, reaching 5.5 million members. The company's business model is rooted in environmental, social, and governance (ESG) principles, with a focus on positively impacting its stakeholders.

In April 2024, Savers Value Village terminated its interest rate swaps and cross currency swaps, realizing net proceeds of $38.4 million. Furthermore, in May 2024, the company acquired 2 Peaches Group, LLC, a thrift store chain with seven locations in the Atlanta, Georgia metropolitan area. This acquisition is expected to generate approximately $7 million in net sales for the period of May 7, 2024, to December 28, 2024.

Savers Value Village uses key performance indicators to evaluate its business performance, including comparable store sales growth, the number of stores, pounds processed, sales yield, and cost of merchandise sold per pound processed. These metrics provide useful information for investors and others in understanding and evaluating the company's results of operations.

Today the company's shares have moved -20.3% to a price of $13.66. For more information, read the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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