Q4 2024 Savers Value Village Inc Earnings Call Transcript
Key Points
- Savers Value Village Inc (SVV) reported a healthy acceleration in trends across the US and Canada, with the US business generating positive comp sales growth.
- The company opened nine new stores in the fourth quarter, meeting its 2024 new store targets and plans to open 25 to 30 new stores in 2025.
- SVV's loyalty program saw double-digit percent growth in active members, with loyalty members accounting for 72% of total sales in the quarter.
- The company generated $74 million of adjusted EBITDA in the quarter, representing more than 18% of sales.
- SVV's competitive pricing tools and innovation in data and technology are enhancing its agility and ability to respond to market dynamics.
- The Canadian business is not yet meeting expectations, with net sales declining 2.7% due to a weaker Canadian dollar and a decrease in transactions.
- Cost of merchandise sold as a percentage of net sales increased, reflecting the impact of new stores and deleverage on lower Canadian comparable store sales.
- Selling, general, and administrative expenses increased due to new stores and preopening expenses.
- The company reported a GAAP net loss for the quarter of $1.9 million or $0.01 per diluted share.
- The Canadian economy presents challenges with potential new tariffs and a weakened Canadian dollar impacting year-over-year comparisons for sales and adjusted EBITDA.
Good afternoon and welcome to Savers Valley Villages conference call to discuss financial results for the 4th quarter ending December 28th, 2024. (Operator Instructions)
Please note that this call is being recorded, and a replay of this call and related materials will be available on the company's investor relations website.
The comments made during this call and the Q&A that follows are copyrighted by the company and cannot be reproduced without written authorization from the company. Certain comments made during this call may constitute forward-looking statements which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from expectations or historical performance.
Please review the disclosure on forward-looking statements included in the company's earnings release and filings with the SEC for a discussion of these risks and uncertainties. Please be advised that statements are currently only as of the date of this call, and while the company may choose to update these statements in the future, it is under no
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