Savers Value Village(SVV) - 2025 Q2 - Quarterly Results

Part I Financial Highlights 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] - The company opened 4 new stores during the second quarter, ending the period with a total of 354 stores[5] Corporate Actions 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] - 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] - 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] Fiscal 2025 Outlook 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 Condensed Consolidated Statements of Operations 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 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 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 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 Reconciliation of Net Income to Adjusted Net Income 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 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 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 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 |