Savers Value Village Reports Revenue Growth and Affirms Investing.com EBITDA Guidance

BELLEVUE, Wash. – Savers Value Village, Inc. (NYSE: SVV), a leading second-hand retailer with a market capitalization of $1.5 billion, today reported preliminary financial results for the fourth quarter and full fiscal year 2024. The company reported an increase in net sales and steady growth in the United States, while there were economic challenges in Canada. According to InvestingPro analysis, the company appears undervalued based on its fair value metrics, with analysts seeing upside potential of up to 39%. The company, which will attend the ICR conference next week, also confirmed its forecast calculated EBITDA for fiscal 2024.

For the thirteen weeks ended December 28, 2024, Savers Value Village reported a 5.0% increase in net sales to $402.0 million, with gross margin remaining impressive at 55%. Due to currency fluctuations, revenue increased 6.0% to $405.9 million. In particular, the US market recorded robust growth of 10.5%, while Canada recorded a slight decline of 0.2%. Comparable store sales for the quarter rose 1.6%, with the U.S. up 4.7% and Canada down 2.5%. InvestingPro subscribers can gain additional insights through the comprehensive Pro Research Report, which details the company’s financial health and growth prospects.

Fiscal 2024 saw a 2.5% increase in net sales to $1.54 billion. On a constant currency basis, the company’s net sales rose 3.1% to $1.55 billion, with the U.S. market driving growth at 6.7%, despite a 1.6% risk in Canada. Comparable store sales for the year were virtually flat, declining just 0.1%.

The preliminary results support previously stated guidance for calculated EBITDA, which is expected to be between $290 million and $300 million for fiscal year 2024. With a price-to-earnings ratio of 21.5, the data shows InvestingProthat the company is trading at an attractive valuation relative to its near-term earnings growth potential, with several ProTips pointing to strong fundamentals.

CEO Mark Walsh expressed satisfaction with the company’s performance, particularly the double-digit increase in U.S. sales. He acknowledged the macroeconomic challenges in Canada but noted progress in that market. Looking ahead, Walsh shares plans to open 25-30 stores in 2025, in line with the new company’s expansion strategy.

Savers Value Village, known for its commitment to reuse and the #ThriftProud movement, is the largest for-profit thrift store chain in the United States and Canada, offering used clothing, accessories and home goods.

The company’s participation in the ICR conference will include meetings with investors and a presentation from Walsh, CFO Michael Maher and VP of Investor Relations Ed Yruma. The event will be webcast live for those interested.

This financial update is based on a press release and the figures presented are preliminary and unaudited. The Company’s final results will be available upon completion of the financial audit at the end of the year.

In other recent news, Savers Value Village is facing significant developments. Piper Sandler downgraded the company’s stock to Neutral from Overweight, citing pressure on gross margin and disappointing sales trends forecast through 2025. The firm also lowered its price target to $10 after the company’s quarterly results fell short of expectations.

Similarly, Goldman Sachs and JPMorgan cut their ratings on Savers Value Village to Neutral due to increasing market pressure in the Canadian sector and potential negative performance, respectively. Despite these downgrades, Piper Sandler reiterated its Overweight rating on the company’s shares, encouraged by the continued popularity of thrift shopping among teenagers.

Savers Value Village also made strategic financial adjustments and added an additional $50 million revolving facility to its existing credit agreement, providing additional liquidity. The company expanded its presence in the Southeast with the acquisition of 2 Peaches Group.

Finally, the appointment of a new chief financial officer, Michael Maher, was received positively by analysts. These developments highlight the dynamic environment in which Savers Value Village operates as it continues to miss forecasts and navigates the evolving secondhand retail landscape.

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