Core Insights - The company achieved year-over-year adjusted EBITDA growth in the first quarter for the first time in nearly two years, indicating a strategic inflection point as new store cohorts mature [1] U.S. Operations - U.S. comparable sales growth reached 8.8%, driven by a secular shift toward thrift, with 45% of U.S. shoppers having a household income above $100,000 [1] Canadian Operations - Canadian operations stabilized with a 0.7% comparable sales growth, where conservative production management and disciplined labor allocation led to increased segment profit despite macroeconomic challenges [1] New Store Performance - New store performance aligns with the long-term model, targeting a 20% contribution margin by year five, with recent openings meeting internal expectations [1] Capital Allocation - Strategic capital allocation focused on high-return store expansion while reducing annual interest expenses by $17 million through a new capital structure [1] Innovation Initiatives - Innovation initiatives, such as 'ABP Lite' for automated book processing, are being implemented across 85% of the fleet to enhance operational efficiency and mitigate wage inflation [1]

Financial Data and Key Metrics Changes - Total net sales increased by 15.6% to $465 million, with an 8.4% increase when excluding the benefit of the 53rd week [12][18] - Adjusted EBITDA for the quarter was $74 million, representing a margin of 15.9% [16][18] - GAAP net income for the quarter was $22 million, or $0.14 per diluted share, while adjusted net income was $24 million, or $0.15 per diluted share [16][18] Business Line Data and Key Metrics Changes - U.S. sales grew by 20.6% to $266 million, with comparable store sales up 8.8% driven by both transactions and average basket size [12][18] - Canadian sales increased by 9.1% to $156 million, with comparable store sales up 0.7% [13][18] - U.S. segment profit was $60 million, an increase of $11 million, while Canadian segment profit was $43 million, up $4 million [17] Market Data and Key Metrics Changes - The U.S. customer base is skewing younger and more affluent, with approximately 40% of shoppers under 45 and 45% having household incomes above $100,000 [5][6] - The Canadian market remains stable, with a conservative approach to planning due to macroeconomic conditions [6][13] Company Strategy and Development Direction - The company plans to open around 25 new stores in 2026, with over 20 of those in the U.S., including expansions into North Carolina and Tennessee [8][10] - The strategic pillars for long-term value creation include growth, innovation, and capital allocation, with a focus on enhancing the price-value equation and driving efficiency [10][11] - The company aims for a net leverage ratio of under 2x within the next couple of years, supported by strong cash flow generation [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of thrift adoption in the U.S. and the potential for market share gains due to rising prices in new clothing and footwear [5][34] - The outlook for 2026 includes net sales of $1.76 billion to $1.79 billion, with comparable store sales growth of 2.5% to 4% [22][24] - Management anticipates modest improvements in gross profit margins as new store headwinds abate and operational efficiencies are driven [20][22] Other Important Information - The company repaid $20 million of debt during the quarter and repurchased 1.1 million shares at a weighted average price of $8.75 [17] - The company introduced ABP Lite, an asset-light extension of its automated book processing system, expected to enhance operational efficiency [9] Q&A Session Summary Question: Can you speak to the progression of same-store sales post-holiday in the U.S.? - Management noted continued good momentum in the U.S., with a rebound in February following disruptions from severe weather in January [28] Question: Can you elaborate on new store productivity and expected returns in the U.S.? - New stores are progressing as expected, averaging around $3 million in sales in the first year and ramping up to around $5 million by the fifth year [29] Question: What are your latest thoughts on pricing and market share gains? - Management believes that price increases by competitors present opportunities for market share gains, targeting price increases below inflation [34] Question: Can you provide insights on the drivers of U.S. sales acceleration? - The acceleration is attributed to the secular trend towards thrift, exceptional selection, and a strong brick-and-mortar experience [68] Question: What is the outlook for Canada? - The company plans conservatively for Canada, expecting flat to low single-digit comparable store sales growth due to a stabilized but weaker economy [69]

Goodwill, long known for its dingy thrift stores with dark, crammed aisles and overflowing bins, is getting more glamorous https://t.co/WRAQ2fmjAz ...

Goodwill, long known for its dingy thrift stores with dark, crammed aisles and overflowing bins, is getting more glamorous https://t.co/BXc9lrs1gr ...

Core Viewpoint - Winmark Corporation (NASDAQ: WINA) is positioned to perform well in a cost-conscious consumer environment due to its ownership of several thrift shop brands [1] Company Summary - Winmark Corporation operates multiple brands that can be categorized as thrift shops, appealing to shoppers looking to reduce expenses [1] Industry Context - The current retail environment is characterized by consumers seeking to lower their spending, which may benefit companies like Winmark that focus on value-oriented offerings [1]

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]

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]

Company Overview - Savers Value Village, Inc. (NYSE: SVV) has a market capitalization of $1.59 billion, indicating its relatively small size in the market [1]. Industry Insights - Crude Value Insights focuses on the oil and natural gas sector, emphasizing cash flow generation and identifying companies with value and growth prospects [1]. - Subscribers to Crude Value Insights benefit from a 50+ stock model account, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2].

Core Insights - Younger shoppers are reducing their spending, which negatively impacts Winmark, a retailer known for its thrift stores like Once Upon a Child and Plato's Closet [1][2] Group 1: Consumer Spending Trends - In-store and online purchases for the 18- to 24-year-old demographic fell by 13% year-over-year from January to April, according to market research firm Circana [4] - Factors contributing to this decline include revived student loan payments, a challenging job market, and increased credit card pressures, particularly affecting shoppers under 24 [4] Group 2: Impact on Winmark - The decline in spending is particularly detrimental to Winmark's Plato's Closet brand, which targets tween-to-young-20s shoppers, with apparel spending down 11% and accessories down 18% [5] - Winmark's stock is considered expensive, trading at nearly $380 per share, with a price-to-earnings ratio of about 33 times trailing earnings and 30 times trailing free cash flow [6] - Despite high valuations, Winmark's profits declined last year and are projected to grow only 6% this year and 7% next year, according to S&P Global Market Intelligence [6][7]

Table of Contents As filed with the Securities and Exchange Commission on June 23, 2023. Registration Statement No. 333-261850 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Amendment No. 10 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Savers Value Village, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 5900 83-4165683 (Primary Standard Industrial Classification Code Number) 1 ...