Market Overview - The stock market has reached new all-time highs, leading to a division among investors into bulls and bears [3][4] - Historical data from the S&P 500 since 1927 indicates that after hitting record highs, the average return over the following two years is positive, with a one-year return of 9.9% [4][6] Investment Recommendations - Eric Fry has recommended buying Savers Value Village (SVV), which benefits from the trend of consumers moving towards cheaper retail options and the growing popularity of thrifting [8] - SVV is advised as a buy below $14.25, reflecting confidence in its revenue growth potential [9] AI and Data Center Demand - Global demand for data center capacity is projected to grow between 19% and 22% annually from 2023 to 2030, potentially tripling current demand of around 60 gigawatts [10][11] - Nvidia (NVDA) is positioned as a leader in the AI megatrend, with significant investments from OpenAI and Intel aimed at enhancing data center capabilities [11][13]

Savers Value Village (SVV) shares ended the last trading session 5.9% higher at $13.2. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.9% gain over the past four weeks.SVV shares have been gaining on the optimism surrounding consistent momentum in its U.S. operations, supported by higher transactions and larger basket sizes. The retailer’s disciplined execution, sharp price-value proposition, and compelling assor ...

Company Overview - Savers Value Village (NYSE: SVV) has been previously rated as a hold due to significant deterioration in margins, indicating caution for potential investors [1]. Investment Strategy - The investment approach discussed includes a combination of fundamental investing, technical investing, and momentum investing, suggesting a diversified strategy to enhance investment performance [1]. Investor Engagement - The article serves as a platform for tracking investment ideas and connecting with like-minded investors, highlighting the importance of community in investment decision-making [1].

Investors in Savers Value Village, Inc. (SVV) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 17, 2025 $5.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It cou ...

Core Insights - The article provides a comprehensive analysis of Amazon.com in comparison to its major competitors in the Broadline Retail industry, focusing on financial metrics, market position, and growth prospects [1] Company Overview - Amazon is the leading online retailer, with retail-related revenue accounting for approximately 75% of total revenue, followed by Amazon Web Services (15%), advertising services (5% to 10%), and other segments [2] - International sales contribute 25% to 30% of Amazon's non-AWS revenue, with Germany, the United Kingdom, and Japan being the leading markets [2] Financial Metrics Comparison - Amazon's Price to Earnings (P/E) ratio is 35.28, which is 0.79x lower than the industry average, indicating potential undervaluation [5] - The Price to Book (P/B) ratio of 7.39 exceeds the industry average by 1.11x, suggesting the stock may be trading at a premium relative to its book value [5] - Amazon's Price to Sales (P/S) ratio of 3.72 is 1.62x the industry average, indicating it might be considered overvalued based on sales performance [5] - The Return on Equity (ROE) stands at 5.68%, which is 0.18% above the industry average, reflecting efficient use of equity to generate profits [5] - Amazon's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $36.6 billion, which is 5.91x above the industry average, indicating stronger profitability [5] - The gross profit of $86.89 billion is 5.24x above the industry average, showcasing higher earnings from core operations [5] - Revenue growth of 13.33% exceeds the industry average of 11.18%, indicating strong sales performance [5] Debt to Equity Ratio - Amazon's debt-to-equity (D/E) ratio is 0.4, indicating a lower reliance on debt financing compared to its top 4 peers, which suggests a more favorable balance between debt and equity [10] - The D/E ratio comparison allows for a concise evaluation of financial health and risk profile within the industry [8] Summary of Performance - Overall, Amazon.com demonstrates strong financial performance and growth potential, outperforming its industry peers in key metrics such as ROE, EBITDA, gross profit, and revenue growth [8]

Core Insights - Savers Value Village (SVV) reported better-than-expected Q2 FY2025 results, with GAAP revenue of $417.2 million exceeding analyst forecasts by $8.9 million and non-GAAP EPS of $0.14 beating estimates by $0.02 [1][2] - The company raised its full-year guidance for sales, comparable store sales, adjusted net income, and adjusted EBITDA, indicating strong U.S. demand and ongoing store expansion [1][10] Financial Performance - GAAP revenue increased by 7.9% year-over-year, with U.S. net sales rising 10.5% to $228.8 million and comparable store sales growing 4.6% [2][5] - Canadian GAAP net sales grew 3.4% to $155.0 million, with comparable store sales recovering to a 2.6% increase [6] - Adjusted EBITDA fell 5.6% to $68.8 million, with the adjusted EBITDA margin declining from 18.9% to 16.5% [2][7] Business Model and Strategy - Savers Value Village operates thrift stores in the U.S., Canada, and Australia, sourcing inventory through charitable partnerships and donations [3] - The company focuses on increasing donations, investing in automated processing, expanding its store base, and enhancing its loyalty program [4] Store Expansion and Customer Engagement - The company opened four new stores, bringing the total to 354, and plans to open 25 stores in fiscal 2025, primarily in the U.S. [8] - Membership in the Super Savers Club® loyalty program reached nearly 6 million, with 72.4% of retail sales attributed to active members [8] Future Outlook - Full-year GAAP net sales are expected to be between $1.67 billion and $1.69 billion, with comparable store sales growth forecasted at 3.0% to 4.5% [10] - Management anticipates profit margins will remain under pressure in the near term but expects improvement as new stores mature [11]

Group 1 - Savers Value Village (SVV) reported revenue of $417.21 million for the quarter ended June 2025, a year-over-year increase of 7.9% [1] - The EPS for the same period was $0.14, unchanged from a year ago, with a surprise of +16.67% compared to the consensus estimate of $0.12 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $407.82 million by +2.3% [1] Group 2 - Comparable Store Sales Growth was 4.6%, significantly above the four-analyst average estimate of 2.3% [4] - U.S. Comparable Store Sales Growth was 6.2%, compared to the 3.8% average estimate based on three analysts [4] - Canada Comparable Store Sales Growth was 2.6%, exceeding the -0.2% average estimate based on three analysts [4] Group 3 - The number of stores in the United States was 171, slightly below the two-analyst average estimate of 176 [4] - The total number of stores was 354, compared to the 359 estimated by two analysts on average [4] - U.S. Retail revenue was $228.83 million, surpassing the $223.99 million average estimate based on two analysts, representing a +10.5% year-over-year change [4] Group 4 - Other revenue was reported at $33.42 million, close to the $33.54 million average estimate, reflecting a +12.3% year-over-year change [4] - Canada Retail revenue was $154.96 million, exceeding the $152.38 million estimate, with a +3.4% year-over-year change [4] Group 5 - Shares of Savers Value have returned -9.7% over the past month, while the Zacks S&P 500 composite increased by +2.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the broader market in the near term [3]

Group 1: Earnings Performance - Savers Value Village (SVV) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, with a year-over-year comparison showing no change [1] - The earnings surprise for this quarter was +16.67%, and the company had a previous quarter surprise of +100% [1][2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Group 2: Revenue Performance - The company posted revenues of $417.21 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.30% and showing an increase from $386.66 million year-over-year [2] - Savers Value has topped consensus revenue estimates two times over the last four quarters [2] Group 3: Stock Performance and Outlook - Savers Value shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.15 on revenues of $420.24 million, and for the current fiscal year, it is $0.44 on revenues of $1.63 billion [7] Group 4: Industry Context - The Textile - Apparel industry, to which Savers Value belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Savers Value's stock performance [5][6]

Financial Data and Key Metrics Changes - Total net sales increased by 7.9% to $417 million, with a constant currency increase of 8.5% and comparable store sales up by 4.6% [17] - Adjusted EBITDA for the quarter was $69 million, representing approximately 16.5% of sales [6][22] - GAAP net income for the quarter was $19 million, or $0.12 per diluted share, while adjusted net income was $23 million, or $0.14 per diluted share [21] Business Line Data and Key Metrics Changes - U.S. business sales grew by 10.5% to $229 million, with comparable store sales up by 6.2% driven by both transactions and average basket size [17][18] - Canadian business saw net sales increase by 3.4%, with comparable store sales up by 2.6%, reflecting improved selection and consumer response [18][19] Market Data and Key Metrics Changes - The U.S. market showed strong performance with a growing customer base that is younger and more affluent, contributing to increased spending [9][18] - In Canada, despite macroeconomic challenges, there was a sequential improvement in sales, indicating a positive consumer response to the company's value proposition [11][12] Company Strategy and Development Direction - The company plans to open 25 new stores in 2025, with new stores performing in line with expectations and contributing to long-term growth [6][13] - The focus remains on enhancing the customer experience through a compelling assortment and value, with a strong emphasis on data-driven decision-making [11][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth opportunities despite ongoing macroeconomic pressures, highlighting the importance of value in the current environment [10][16] - The company raised its revenue and earnings outlook for 2025 based on strong first-half results and continued momentum [7][25] Other Important Information - The company reported a strong balance sheet with $71 million in cash and cash equivalents and a net leverage ratio of 2.5 times at the end of the quarter [22] - The company repurchased approximately 2.7 million shares during the quarter, indicating confidence in its stock value [23] Q&A Session Summary Question: Can you elaborate on the cadence of the second quarter same store sales across the U.S. and Canada? - Management noted strong execution in the U.S. with increasing penetration in younger demographics, while Canada faced different challenges but showed improvement in selection and value [30][32] Question: What are the transitory headwinds to margin expected in the back half of the year? - Management indicated that increased selection in Canada and the conversion of Two Peaches stores are contributing to short-term margin pressures, but these are expected to normalize [50][56] Question: How do you see the pricing opportunity in the current market? - Management highlighted significant price gaps to discount retailers, providing an opportunity to gain market share while maintaining value [62][63] Question: Can you provide insights on labor costs and production efficiency? - Labor costs are expected to grow at a typical rate, while the company is focused on innovative approaches to improve production efficiency [78][80] Question: What is the outlook for real estate opportunities? - Management expressed optimism about the real estate pipeline, indicating high-quality deals and a favorable environment for expansion [72][76]

Part I [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Strong Q2 2025 results show net sales up 7.9% to $417.2 million, driven by 4.6% comparable store sales growth, leading to raised 2025 guidance Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Change vs Q2 2024 | | :--- | :--- | :--- | | **Net Sales** | $417.2 million | +7.9% | | **Constant-Currency Net Sales** | - | +8.5% | | **Comparable Store Sales** | +4.6% | - | | - U.S. | +6.2% | - | | - Canada | +2.6% | - | | **Net Income** | $18.9 million | - | | **Diluted EPS** | $0.12 | - | | **Adjusted Net Income** | $22.8 million | - | | **Adjusted Diluted EPS** | $0.14 | - | | **Adjusted EBITDA** | $68.8 million | - | - CEO Mark Walsh highlighted **strong U.S. comparable store sales** and **improving performance in Canada** as key drivers, leading the company to **raise its 2025 guidance**[4](index=4&type=chunk) - The company opened **4 new stores** during the second quarter, ending the period with a total of **354 stores**[5](index=5&type=chunk) [Corporate Actions](index=2&type=section&id=Corporate%20Actions) The company facilitated a secondary offering of 17.3 million shares and repurchased 2.3 million shares for $20.0 million - On May 16, 2025, certain stockholders sold **17.3 million shares** in a secondary offering. The company did not receive proceeds but incurred **$1.2 million** in associated costs[6](index=6&type=chunk) - As part of the offering, the company repurchased approximately **2.3 million shares** from the underwriters at a total cost of about **$20.0 million**, funded from cash on hand[7](index=7&type=chunk) - Under the separate **$50.0 million** share repurchase program from November 2023, the company repurchased **0.4 million shares** in Q2. As of quarter-end, **$2.8 million** remained available under this program[8](index=8&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Fiscal%202025%20Outlook) Reflecting strong momentum, the company raised its full-year fiscal 2025 guidance for net sales and comparable store sales growth Updated Fiscal 2025 Outlook | Metric | Current Outlook | Previous Outlook | | :--- | :--- | :--- | | **Net sales** | $1.67B to $1.69B | $1.61B to $1.65B | | **Comparable store sales growth** | 3.0% to 4.5% | 0.5% to 2.5% | | **Net income** | $47M to $58M | $36M to $52M | | **Net income per diluted share** | $0.29 to $0.36 | $0.21 to $0.31 | | **Adjusted net income** | $67M to $78M | $62M to $77M | | **Adjusted net income per diluted share** | $0.41 to $0.48 | $0.37 to $0.46 | | **Adjusted EBITDA** | $252M to $267M | $245M to $265M | | **New store openings** | 25 | 25 to 30 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net sales grew 7.9% to $417.2 million, with net income increasing to $18.9 million or $0.12 per diluted share Q2 Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net sales** | $417,208 | $386,663 | | **Operating income** | $34,021 | $32,216 | | **Net income** | $18,917 | $9,712 | | **Diluted EPS** | $0.12 | $0.06 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets reached $1.94 billion, while cash decreased to $70.6 million due to share repurchases and debt payments Balance Sheet Highlights (in thousands) | Account | June 28, 2025 | Dec 28, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $70,550 | $149,967 | | **Total current assets** | $170,683 | $230,224 | | **Total assets** | $1,939,121 | $1,885,495 | | **Long-term debt, net** | $700,526 | $735,133 | | **Total liabilities** | $1,515,647 | $1,463,815 | | **Total stockholders' equity** | $423,474 | $421,680 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $54.9 million, while financing activities used $82.9 million, resulting in a $79.4 million net decrease in cash Cash Flow Summary - Twenty-Six Weeks Ended (in thousands) | Cash Flow Activity | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $54,865 | $54,566 | | **Net cash used in investing activities** | ($53,879) | ($28,004) | | **Net cash used in financing activities** | ($82,933) | ($43,536) | | **Net change in cash and cash equivalents** | ($79,417) | ($19,304) | [Segment Results](index=9&type=section&id=Segment%20Results) U.S. Retail net sales grew 10.5% to $228.8 million, while Canada Retail sales increased 3.4% to $155.0 million Q2 2025 Segment Results (in thousands) | Segment | Net Sales | % Change | Segment Profit | % Change | | :--- | :--- | :--- | :--- | :--- | | **U.S. Retail** | $228,833 | 10.5% | $48,513 | 0.9% | | **Canada Retail** | $154,956 | 3.4% | $39,475 | (10.4)% | | **Other** | $33,419 | 12.3% | $8,689 | 3.2% | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) [Reconciliation of Net Income to Adjusted Net Income](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Q2 2025 GAAP net income of $18.9 million was adjusted to $22.8 million, with Adjusted Net Income per diluted share of $0.14 Q2 Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (GAAP)** | **$18,917** | **$9,712** | | IPO-related stock-based compensation | $8,870 | $19,732 | | Foreign currency exchange rate impacts | ($8,513) | $940 | | Other adjustments (net) | $3,480 | $1,499 | | **Adjusted net income (Non-GAAP)** | **$22,752** | **$26,701** | [Reconciliation of Net Income to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Q2 2025 GAAP net income of $18.9 million was reconciled to an Adjusted EBITDA of $68.8 million, achieving a 16.5% margin Q2 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (GAAP)** | **$18,917** | **$9,712** | | Interest expense, net | $15,985 | $15,767 | | Income tax expense | $7,693 | $6,293 | | Depreciation and amortization | $20,904 | $17,380 | | Stock-based compensation expense | $12,429 | $21,650 | | Other adjustments (net) | ($8,199) | $1,194 | | **Adjusted EBITDA (Non-GAAP)** | **$68,786** | **$72,893** | [Reconciliation of GAAP Net Sales to Constant-Currency Net Sales](index=13&type=section&id=Reconciliation%20of%20GAAP%20Net%20Sales%20to%20Constant-Currency%20Net%20Sales) Q2 2025 reported net sales of $417.2 million, with constant-currency net sales of $419.5 million, reflecting 8.5% growth Q2 Net Sales Reconciliation to Constant Currency (in thousands) | Description | Net Sales (GAAP) | Impact of Foreign Currency | Constant Currency Net Sales | | :--- | :--- | :--- | :--- | | **Total net sales** | **$417,208** | **$2,268** | **$419,476** | [Supplemental Metrics](index=14&type=section&id=Supplemental%20Metrics) Q2 2025 total comparable store sales grew 4.6%, led by 6.2% growth in the U.S., and total store count increased to 354 Q2 Comparable Store Sales | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. | 6.2% | 2.1% | | Canada | 2.6% | (3.1)% | | **Total** | **4.6%** | **(0.1)%** | Q2 Key Operating Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Number of Stores (Total)** | 354 | 337 | | **Pounds processed (lbs mm)** | 279 | 254 | | **Sales yield** | $1.46 | $1.46 |