The chart below shows how VVV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VVV sees a +0.10% change in stock price 10 days leading up to the earnings, and a +0.98% change 10 days following the report. On the earnings day itself, the stock moves by +0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Store Sales Increase: System-wide store sales were $3.1 billion, a 12% increase over the prior year.
Same-Store Sales Growth: We also delivered our 18th consecutive year of system-wide same-store sales growth with 6.7% growth for the year.
EBITDA Growth and Margin Improvement: Adjusted EBITDA was up 17% to $443 million and adjusted EBITDA margin improved 100 basis points to 27.3%.
Customer Transaction Milestone: This year, we completed over 28 million customer transactions across the network.
Customer Service Recognition: In October, we were pleased to be ranked number 18th overall in Best Customer Service by Forbes as we continue to focus on delivering a quick, easy, trusted experience to our guests.
Negative
Net Sales Increase: Net sales grew to $436 million, an almost 12% increase over the prior year, but system-wide same-store sales growth was only 5.4%.
Positive Transaction Growth: Despite a 40 basis point impact from Crowd Strike and the hurricanes that occurred during the quarter, the company saw positive transaction growth.
Sales Growth Analysis: For the fiscal year, net sales grew just over 12% to $1.6 billion, but system-wide same-store sales growth was only 6.7%.
Net Debt Analysis: The company ended fiscal '24 with $1 billion of net debt, and while they reduced their net leverage ratio to 3.4 times adjusted EBITDA, this still indicates a significant debt burden.
Decline in Operating Cash Flows: Operating cash flows were $283 million, which is $70 million lower than the prior year, indicating a decline in cash generation capacity.
Valvoline Inc. (VVV) Q4 2024 Earnings Call Transcript
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