Core Insights - Savers Value Village (SVV) reported revenue of $401.99 million for the quarter ended December 2024, reflecting a 5% increase year-over-year, while EPS decreased to $0.10 from $0.15 in the previous year [1] - The reported revenue was in line with the Zacks Consensus Estimate of $402 million, indicating no surprise, but the EPS fell short of the consensus estimate of $0.12, resulting in a -16.67% EPS surprise [1] Financial Performance Metrics - Comparable Store Sales Growth for the total was 1.6%, matching the average estimate from three analysts [4] - Comparable Store Sales Growth in the United States was 4.7%, aligning with the three-analyst average estimate [4] - Comparable Store Sales Growth in Canada was -2.5%, consistent with the average estimate from three analysts [4] - The number of stores in the United States was 172, slightly below the two-analyst average estimate of 173 [4] - The number of stores in Canada was 165, also below the two-analyst average estimate of 168 [4] - Total number of stores was 351, compared to the average estimate of 354 from two analysts [4] - U.S. Retail revenue was reported at $220.46 million, a year-over-year increase of 10.5%, slightly below the two-analyst average estimate of $220.48 million [4] - Other revenue was $30.39 million, representing an 8.8% year-over-year increase, exceeding the two-analyst average estimate of $29.75 million [4] - Canada Retail revenue was $151.13 million, a decrease of 2.7% year-over-year, compared to the average estimate of $151.78 million from two analysts [4] Stock Performance - Shares of Savers Value have returned -0.5% over the past month, while the Zacks S&P 500 composite increased by 2.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Savers Value Village (SVV) reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.12 per share, and showing a decline from $0.15 per share a year ago, indicating an earnings surprise of -16.67% [1][2] Financial Performance - The company posted revenues of $401.99 million for the quarter ended December 2024, which aligns with the Zacks Consensus Estimate and represents an increase from $382.77 million year-over-year [2] - Over the last four quarters, Savers Value has not surpassed consensus EPS or revenue estimates [2] Stock Performance - Savers Value shares have increased approximately 9.3% since the beginning of the year, outperforming the S&P 500's gain of 4.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $381.93 million, and for the current fiscal year, it is $0.51 on revenues of $1.66 billion [7] - The trend of estimate revisions for Savers Value is currently favorable, which could influence future stock movements [5][6] Industry Context - The Textile - Apparel industry, to which Savers Value belongs, is ranked in the top 15% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Sales Performance - Net sales for the fourth quarter increased 5.0% to $402.0 million, with constant currency net sales rising 6.0% to $405.9 million[3] - U.S. net sales increased 10.5% in the fourth quarter, while Canada net sales decreased 0.2%[3] - Comparable store sales for the fourth quarter rose 1.6%, with the U.S. increasing 4.7% and Canada decreasing 2.5%[3] - Fiscal 2024 net sales increased 2.5% to $1.54 billion, with constant currency net sales up 3.1% to $1.55 billion[3] - U.S. net sales for fiscal 2024 increased 6.7%, while Canada net sales decreased 1.6%[3] - Comparable store sales for fiscal 2024 decreased 0.1%, with the U.S. increasing 2.7% and Canada decreasing 4.0%[3] Financial Outlook - The company reaffirms its fiscal 2024 Adjusted EBITDA outlook of approximately $290 million to $300 million[2] Expansion Plans - The company plans to open 25-30 new stores in 2025, continuing its new store growth strategy[2] Investor Engagement - The company participated in the 27th Annual ICR Conference from January 13-15, 2025, to engage with investors[4] Reporting Practices - The company emphasizes the importance of constant currency reporting to facilitate period-to-period comparisons[10]

Core Insights - Savers Value Village (SVV) is expected to report quarterly earnings of $0.12 per share, a decline of 20% year-over-year, with revenues projected at $402 million, reflecting a 5% increase compared to the same period last year [1] Financial Projections - Analysts predict 'U.S. Retail' revenues will reach $220.48 million, indicating a year-over-year increase of 10.5% [4] - The 'Other' category is estimated to generate $29.75 million, showing a year-over-year growth of 6.5% [4] - 'Canada Retail' revenues are expected to be $151.78 million, representing a decline of 2.3% year-over-year [4] Comparable Store Metrics - 'Comparable Store Sales Growth - United States' is projected at 4.7%, up from 3.1% in the previous year [5] - The estimated 'Number of Stores - United States' is 173, an increase from 155 reported in the same quarter last year [5] - The 'Number of Stores - Canada' is projected to be 168, compared to 159 a year ago [5] - The total 'Number of Stores' is expected to reach 354, up from 326 year-over-year [6] Market Performance - Shares of Savers Value have returned +0.4% over the past month, while the Zacks S&P 500 composite has increased by +4.7% [7] - SVV holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [7]

Core Viewpoint - Shares of Savers Value Village (SVV) have increased by 7.5% recently, with a mean price target of $15.33 suggesting a potential upside of 36.6% from the current price of $11.22 [1] Price Targets - The average price target consists of nine estimates ranging from a low of $10 to a high of $25, with a standard deviation of $5.34, indicating variability among analysts [2] - The lowest estimate suggests a decline of 10.9%, while the highest indicates a potential upside of 122.8% [2] - A low standard deviation signifies a higher agreement among analysts regarding price movement [7] Analyst Sentiment - Analysts are optimistic about SVV's earnings prospects, as indicated by a trend of upward revisions in earnings estimates, which historically correlates with stock price movements [9] - Over the past 30 days, two earnings estimates have increased, leading to a 7.6% rise in the Zacks Consensus Estimate [10] Zacks Rank - SVV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [11] Conclusion on Price Targets - While consensus price targets may not reliably indicate the extent of potential gains, they can provide a directional guide for stock movement [12]

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Financial Data and Key Metrics Changes - Total net sales increased by 0.5% to $395 million, with a constant currency increase of 1.2% and comparable store sales decreased by 2.4% [22] - Adjusted EBITDA was $82 million, representing an adjusted EBITDA margin of 20.8% [28] - GAAP net income for the quarter was $21.7 million, or $0.13 per diluted share, while adjusted net income was $25.1 million, or $0.15 per diluted share [28] Business Line Data and Key Metrics Changes - U.S. net sales increased by 6.2% to $212 million, with comparable store sales up by 1.6% driven by growth in both transactions and average basket [22] - Canadian net sales declined by 7.1% to $152 million, with comparable store sales down by 7.5%, primarily due to declines in transactions [22] Market Data and Key Metrics Changes - The Canadian macroeconomic environment remains challenging, with a 6.5% unemployment rate and rising cost of living affecting low-income consumers [9] - Loyalty program growth was solid, with double-digit percentage growth in active members in both the U.S. and Canada, accounting for 72% of total sales in the quarter, up from 70% last year [8] Company Strategy and Development Direction - The company plans to open 29 new stores this year and has accelerated its new store opening plans for 2025, now expecting to open 25 to 30 new stores [14][25] - The company is focusing on expanding off-site processing capabilities, which is critical for new store growth and operational efficiency [16] - The long-term strategy emphasizes growth in the U.S. market, with approximately 60% of new store openings in 2025 planned for the U.S. [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite current challenges, particularly in Canada, and emphasized the importance of innovation and operational effectiveness [19][85] - The company is actively testing different pricing and discounting approaches to improve performance in Canada, with a focus on strategic price reductions by category and grade [12][45] Other Important Information - The company repurchased approximately 1.8 million shares during the quarter at an average price of $9.86 per share, with $29 million remaining on the share repurchase authorization [30] - The balance sheet remains strong with $138 million in cash and cash equivalents and a net leverage ratio of 2.1 times at the end of the quarter [30] Q&A Session Summary Question: Can you elaborate on same-store sales trends in Q3 and early Q4? - Management noted that trends in both Canada and the U.S. improved from July through September, continuing into early Q4 [35] Question: Can you break down drivers of gross margin contraction in Q3? - Gross margin contraction was primarily driven by new stores and deleverage on lower comparable sales [36][37] Question: What tests were conducted to improve Canadian business performance? - Management conducted several promotional and pricing strategy tests, with strategic price reductions showing the most promise [44][45] Question: What is the thought process behind the guidance adjustments? - The guidance was narrowed to reflect the softer performance in Canada and consistent trends in the U.S. [52] Question: What actions are being taken to mitigate macro difficulties in Canada? - Management is implementing targeted pricing changes and monitoring competitive pressures to improve performance [76][78] Question: Can you provide updates on the integration of the 2 Peaches acquisition? - The company has converted two of the seven stores acquired from 2 Peaches to its operational model, with positive early results [101]

Core Insights - Savers Value Village (SVV) reported revenue of $394.8 million for the quarter ended September 2024, reflecting a 0.5% increase year-over-year, but fell short of the Zacks Consensus Estimate of $401.94 million by 1.78% [1] - The company's EPS was $0.15, down from $0.16 in the same quarter last year, resulting in an EPS surprise of -11.76% against the consensus estimate of $0.17 [1] Financial Performance Metrics - Comparable Store Sales Growth - Total: -2.4%, compared to the three-analyst average estimate of -1% [3] - Comparable Store Sales Growth - United States: 1.6%, below the 2.6% average estimate [3] - Comparable Store Sales Growth - Canada: -7.5%, worse than the -4.5% estimated by analysts [3] - Number of Stores - United States: 167, slightly below the two-analyst average estimate of 169 [3] - Number of Stores - Canada: 164, in line with the average estimate of 163 [3] - U.S. Retail Revenue: $212.47 million, below the $215.45 million estimate, but a 6.2% increase year-over-year [3] - Other Revenue: $30.44 million, exceeding the $29.70 million estimate, with a year-over-year change of 4.8% [3] - Canada Retail Revenue: $151.89 million, below the $157.26 million estimate, representing a 7.1% decline year-over-year [3] Stock Performance - Shares of Savers Value have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Core Viewpoint - Savers Value Village (SVV) reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.17 per share, and showing a decline from $0.16 per share a year ago, indicating an earnings surprise of -11.76% [1] Financial Performance - The company posted revenues of $394.8 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.78%, and showing a slight increase from $392.7 million year-over-year [2] - Over the last four quarters, Savers Value has consistently failed to surpass consensus EPS and revenue estimates [2] Stock Performance - Savers Value shares have declined approximately 37.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The current Zacks Rank for Savers Value is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $397.47 million, and for the current fiscal year, it is $0.51 on revenues of $1.54 billion [7] - The trend of estimate revisions for Savers Value is mixed, which could change following the recent earnings report [6] Industry Context - The Textile - Apparel industry, to which Savers Value belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Comparatively, Lululemon (LULU), another company in the same industry, is expected to report quarterly earnings of $2.73 per share, reflecting a year-over-year increase of 7.9% [9]

Financial Performance - Net sales increased by 0.5% to $394.8 million, with U.S. sales up 6.2% and Canada down 7.1%[2] - Comparable store sales decreased by 2.4%, with U.S. increasing by 1.6% and Canada decreasing by 7.5%[2] - Net income was $21.7 million, with an adjusted net income of $25.1 million, resulting in net income per diluted share of $0.13 and adjusted net income per diluted share of $0.15[2] - Adjusted EBITDA was $82.0 million, with an adjusted EBITDA margin of 20.8%[2] - Operating income for the thirteen weeks ended September 28, 2024, was $48,638, compared to $20,345 in the same period of 2023, indicating a significant increase of 139.5%[18] - Net income for the thirteen weeks ended September 28, 2024, was $21,681, a turnaround from a net loss of $15,612 in the same period of 2023[23] - Basic net income per share for the thirteen weeks ended September 28, 2024, was $0.13, compared to a loss of $0.10 per share in the same period of 2023[23] - Adjusted net income for the thirteen weeks ended September 28, 2024, was $25,088,000, compared to $26,519,000 for the same period in 2023[29] - Net income per diluted share for the thirteen weeks ended September 28, 2024, was $0.13, compared to a net loss of $0.10 for the same period in 2023[29] - Adjusted EBITDA for the thirteen weeks ended September 28, 2024, was $81,998 thousand, down 9.0% from $91,010 thousand in the prior year[33] Sales and Revenue - Total active members in loyalty programs increased by 11.5% to 5.8 million, accounting for nearly 72% of total sales in the quarter[2] - The updated fiscal 2024 outlook includes total net sales of approximately $1.53 billion to $1.54 billion[4] - Projected net income for fiscal 2024 is approximately $44 million to $49 million, with adjusted net income projected at $81 million to $86 million[4] - U.S. Retail net sales increased by $12,343,000 (6.2%) to $212,470,000 for the thirteen weeks ended September 28, 2024, compared to $200,127,000 for the same period in 2023[25] - Canada Retail net sales decreased by $11,632,000 (7.1%) to $151,886,000 for the same period, down from $163,518,000[25] - Total net sales for the company increased by $2,099,000 (0.5%) to $394,797,000 for the thirteen weeks ended September 28, 2024, compared to $392,698,000 in the prior year[25] - The U.S. Retail segment's total net sales for the thirty-nine weeks ended September 28, 2024, increased by $31,470,000 (5.4%) to $612,118,000 compared to $580,648,000 in the prior year[26] Store Operations and Expansion - The company plans to open 29 new stores in fiscal 2024, including 22 organic openings and 7 from the Peaches acquisition[4] - The total number of stores increased to 344 as of September 28, 2024, from 321 in the same period last year[37] Assets and Liabilities - Total assets as of September 28, 2024, were $1,889,671, an increase from $1,867,405 as of December 30, 2023[19] - Total liabilities decreased to $1,456,788 as of September 28, 2024, from $1,491,350 as of December 30, 2023[19] - Cash and cash equivalents at the end of the period were $137,719, down from $179,955 at the beginning of the period[21] Capital Expenditures and Debt - The company incurred $80,146 in capital expenditures for property and equipment during the thirteen weeks ended September 28, 2024[21] - The company reported a loss on extinguishment of debt of $4,088 for the thirty-nine weeks ended September 28, 2024, compared to a loss of $16,626 for the same period in 2023[21] - The company reported an interest expense of $15,466 thousand for the thirteen weeks ended September 28, 2024, down from $18,708 thousand in the same period last year[33] Market Strategy - The company remains focused on driving stronger performance in Canada despite macroeconomic pressures[2] - The company anticipates continued focus on market expansion and new product development as part of its strategic initiatives moving forward[36]