Savers Value Village(SVV) - 2026 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, and at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 during the fourth quarter [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The company has over 6 million active loyalty members, contributing to approximately $1.7 billion in sales [5] Market Data and Key Metrics Changes - The company noted that the customer base is becoming younger and more affluent, with approximately 40% of customers under the age of 45 and 45% residing in households earning over $100,000 [7] Company Strategy and Development Direction - The company is focusing on growth, innovation, and balanced capital allocation as its strategic pillars [8] - The U.S. market is prioritized for new store openings, with 85% to 90% of new stores planned for the U.S. [9] - The company aims to enter new strategic adjacent markets in North Carolina and Tennessee [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position at a key inflection point, with expectations for positive Adjusted EBITDA contributions in 2026 [2][10] - The company anticipates that new stores will start contributing to EBITDA growth beginning in 2026, with 2025 expected to be the trough for EBITDA margin [17][19] Other Important Information - The company has repaid $120 million in debt since its IPO, including $20 million in the most recent quarter, and aims for a leverage ratio of approximately two times by the end of 2027 [17] - The company has a proven innovation engine, focusing on price value optimization, cost efficiency, and data science insights [13][19] Q&A Session Summary - No specific questions and answers were provided in the content.