Core Insights - Investors are optimistic about the impact of new U.S. tariffs on secondhand goods sellers, with shares of ThredUp and Savers Value Village rising by 31% and 22% respectively since the announcement, while the S&P retail select index has declined by 7% [1] Group 1: Market Dynamics - Secondhand sellers are expected to attract bargain-hunting consumers and those looking to sell items for extra cash, as their merchandise is immune from tariffs, allowing them to potentially raise prices in response to increased costs of new imported goods [2] - The secondhand sector typically performs well during economic downturns and has gained popularity among younger consumers [2] Group 2: Company Performance and Expectations - ThredUp projected revenue between $67.5 million and $69.5 million for Q1 and between $270 million and $280 million for the year prior to the tariff announcement [3] - ThredUp's CEO noted that the uncertain consumer environment and tariffs could make secondhand options more attractive [4] - In contrast, Savers Value Village expressed caution regarding the tariff impact, with its CEO stating that the tariff issue complicates the outlook [4][5] Group 3: Consumer Behavior Trends - A report indicated that millennials are increasingly turning to secondhand shopping, with 52% of those who purchased secondhand items in the past year reporting an increase in their resale shopping activities [5]

Company Overview - Savers Value Village (SVV) shares increased by 8% to $7.68 in the last trading session, with a higher-than-average trading volume [1] - The stock has shown a modest gain of 0.1% over the past four weeks [1] Business Performance - SVV's growth in the U.S. business is driven by increased transactions, larger average basket sizes, and new store openings [2] - The company's competitive pricing and value offerings have positively impacted consumer sentiment [2] - There has been a sequential improvement in the Canadian business, contributing to increased investor confidence [2] Earnings Expectations - SVV is expected to report quarterly earnings of $0.01 per share, reflecting a year-over-year decline of 87.5% [3] - Revenue is projected to be $365.68 million, which is a 3.3% increase from the same quarter last year [3] - The consensus EPS estimate for the quarter has been revised 4.2% higher in the last 30 days, indicating a positive trend in earnings estimate revisions [4] Industry Context - Savers Value operates within the Zacks Textile - Apparel industry, where Gildan Activewear (GIL) has seen a 4.8% decline in its stock price, closing at $39.78 [4] - Gildan's consensus EPS estimate remains unchanged at $0.57, representing a 3.4% decrease from the previous year [5]

I wrote about Savers Value Village (NYSE: SVV ) previously with a hold rating as I was worried about the near-term growth and margin outlook. Although SVV US business continues to perform well, Canada remains a significant drag, andI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Techni ...

Financial Position and Debt - As of December 28, 2024, the company had $123.8 million available to borrow under the Revolving Credit Facility, with no advances made[230]. - A 100 basis point increase in interest rates would result in a $3.2 million change in annual interest expense on the company's variable rate indebtedness[229]. - The company does not anticipate paying any cash dividends for the foreseeable future due to limitations imposed by its indebtedness[236]. - The company is exposed to interest rate risk due to reliance on variable rate borrowings, which could impact net income and cash flows[229]. Shareholder Influence and Governance - The Ares Funds owned 84.6% of the company's common stock as of December 28, 2024, allowing them significant influence over corporate governance[243]. - The company is classified as a "Controlled Company" under NYSE rules, allowing it to opt out of certain corporate governance requirements[246]. - The Ares Funds control a majority of the voting power, which may limit stockholder protections compared to companies fully compliant with NYSE governance standards[247]. - Provisions in the company's certificate of incorporation and bylaws may delay or prevent changes in control, potentially affecting stock price and investor interest[248]. - The company has opted out of Section 203 of the Delaware General Corporation Law, which generally restricts business combinations with interested stockholders owning 15% or more of voting stock[250]. - The exclusive-forum provisions in the certificate of incorporation may limit stockholders' ability to bring claims in preferred judicial forums, potentially discouraging lawsuits[252]. - The company’s certificate of incorporation allows Ares Funds and affiliates to engage in similar business activities without liability for breaching fiduciary duties[256]. Business Risks and Challenges - The company faces risks related to attracting and retaining customers, particularly in the context of growing acceptance of secondhand items[18]. - The company has no operations in the growing online retail marketplace, which poses a risk to its business model[18]. - The company may face challenges in opening new profitable stores or entering new markets in a timely manner[18]. - The company is subject to various risks including geopolitical instability and regulatory changes that could adversely affect its operations[18]. - The company relies heavily on key executive officers and employees, and their loss could adversely affect business operations[258]. Regulatory and Compliance Issues - Compliance with public company regulations may strain resources and divert management's attention, impacting overall business performance[261]. - Changing laws and regulations regarding corporate governance may increase compliance costs and create uncertainty for the company[263]. - Disclosure requirements as a public company may expose the company to increased litigation risks, affecting financial condition and operational focus[265].

Savers Value Village, Inc. (NYSE:SVV) Q4 2024 Earnings Conference Call February 20, 2025 4:30 PM ET Company Participants Mark Walsh - Chief Executive Officer Michael Maher - Chief Financial Officer Jubran Tanious - President & Chief Operating Officer Conference Call Participants Matthew Boss - JPMorgan Mark Altschwager - Baird Brooke Roach - Goldman Sachs Bob Drbul - Guggenheim Michael Lasser - UBS Carlos Gallagher - Jefferies Anthony Chukumba - Loop Capital Markets Operator Good afternoon, and welcome to S ...

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]