Savers Value Village Reports Second Quarter 2024 Financial Results
Intellectia.AI1970-01-01
Savers Value Village Reports Second Quarter 2024 Financial Results
Savers Value Village, Inc. (NYSE:SVV), announced its financial results for the thirteen weeks ended June 29, 2024 (the "second quarter").
Key Financial Metrics
| Metrics | Q2 2024 Actuals (GAAP) | Q2 2023 Actuals (GAAP) | YoY Change | Consensus Estimates | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue ($ millions) | 386.7 | 379.1 | +2.0% | 391.08 | -1.12% |
| Total Revenue, Constant Currency ($ MM) | 389.7 | 379.1 | +2.8% | - | - |
| Earnings Per Share (EPS) | 0.06 | - | - | 0.20 | - |
| Adjusted Earnings Per Share (Adj. EPS) | 0.14 | - | - | - | - |
| Net Income ($ millions) | 9.7 | - | - | - | - |
| Adjusted Net Income ($ millions) | 23.7 | - | - | - | - |
| Adjusted EBITDA ($ millions) | 80.0 | - | - | - | - |
| Adjusted EBITDA Margin (%) | 20.7% | - | - | - | - |
Interpretation : Savers Value Village saw a modest increase in total revenue, matching closely with expectations. However, the diluted EPS and adjusted EPS fell short of consensus estimates. The Adjusted EBITDA margin indicates strong operational efficiency despite foreign currency headwinds.
Revenue Performance Across Segments
| Segment | Q2 2024 Actuals (GAAP) | Q2 2023 Actuals (GAAP) | YoY Change |
|---|---|---|---|
| Total Revenue ($ millions) | 386.7 | 379.1 | +2.0% |
| - United States | +5.4% | - | - |
| - Canada | -2.4% | - | - |
| Constant Currency Revenue ($MM) | 389.7 | 379.1 | +2.8% |
| Comparable Store Sales (%) | -0.1% | - | - |
| - United States | +2.1% | - | - |
| - Canada | -3.1% | - | - |
Interpretation : The U.S. market demonstrated robust growth in sales, substantiating strong consumer demand. Conversely, the Canadian market faced challenges, influenced by a tough economic environment.
Key Operational Data
| Operational Metrics | Q2 2024 Actuals |
|---|---|
| Total Active Members (U.S. & Canada) | 5.7 million |
| Growth in Loyalty Program Members (%) | +11.8% |
| New Stores Opened | 4 |
| Stores Acquired | 7 |
| Total Stores as of End of Q2 | 337 |
Officer Comments Mark Walsh, CEO, noted solid sales growth and traffic in the U.S., alongside an increase in loyalty program membership. However, he acknowledged the challenges faced in the Canadian market and adjusted the fiscal 2024 outlook accordingly.
Share Repurchase Program The company repurchased approximately 288 thousand shares at an average price of $11.51 per share during the quarter, and a total of 1.4 million shares year-to-date, at an average price of $10.51 per share. Approximately $35 million remains on its share repurchase authorization.
Forward Guidance The updated fiscal 2024 outlook includes: - Net sales of approximately $1.53 billion to $1.56 billion (from $1.57 billion to $1.59 billion). - Comparable store sales between -1% to 1% (from 2% to 3%). - Net income between $42 million to $56 million (from $85 million to $92 million). - Adjusted EBITDA of approximately $290 million to $310 million (from $330 million to $340 million).
Stock Price Movement Following the earnings report, the stock price saw no change (0.0% after event change).
Savers Value Village is committed to continuing its operations with an eye toward long-term growth despite the present headwinds in the Canadian market. The company remains focused on expanding its U.S. footprint and enhancing store productivity.
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