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• Total Net Sales: Increased 4.5% to $370 million.

• Constant Currency Net Sales Growth: 7.1%.

• Comparable Store Sales Growth: 2.8%.

• U.S. Net Sales: Increased 9.4% to $211 million.

• U.S. Comparable Store Sales Growth: 4.2%.

• Canadian Net Sales: Declined 4.1%; constant currency increase of 2.2% to $137 million.

• Canadian Comparable Store Sales Growth: 0.6%.

• Adjusted EBITDA: $43 million, 11.6% of sales.

• GAAP Net Loss: $4.7 million or $0.03 per diluted share.

• Adjusted Net Income: $3.6 million or $0.02 per diluted share.

• Cash and Cash Equivalents: $73 million.

• Net Leverage Ratio: 2.4x.

• New Store Openings: 2 new stores in the first quarter; plan to open 25 to 30 new stores in 2025.

• Loyalty Program Members: Nearly 6 million active members.

• Cost of Merchandise Sold: Increased 80 basis points to 45.5% of net sales.

• Salaries, Wages, and Benefits: $85 million; increased 190 basis points to 20.5% of net sales.

• Selling, General and Administrative Expenses: Increased 160 basis points to 23.6% of net sales.

• Depreciation and Amortization: Increased 6% to $19 million.

• Net Interest Expense: Decreased 8% to $15 million.

• Share Repurchase: Approximately 1.4 million shares at $8.43 per share.

• Warning! GuruFocus has detected 3 Warning Sign with SVV.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Savers Value Village Inc (NYSE:SVV) reported nearly double-digit sales growth in the U.S., driven by increases in both transactions and average basket size.

• The Canadian business saw a return to positive comparable store sales for the first time since Q4 2023, indicating improvement in that market.

• The company's loyalty program experienced strong growth, reaching nearly 6 million active members by the end of the first quarter.

• SVV opened two new stores in the first quarter and remains on track to meet its 2025 new store targets, with new stores performing in line with expectations.

• The company generated nearly $43 million of adjusted EBITDA in the quarter, representing approximately 11.6% of sales, highlighting strong financial performance.

Negative Points

• Net sales in Canada declined by 4.1% due to a weaker Canadian dollar, impacting overall financial performance.

• Salaries, wages, and benefits expenses increased by 190 basis points to 20.5% of net sales, driven by new store growth and increased incentive compensation expenses.

• Selling, general, and administrative expenses rose by 160 basis points to 23.6% of net sales, primarily due to growth in the store base and increased rent and utilities costs.

• The company reported a GAAP net loss of $4.7 million for the quarter, including a $2.7 million pretax loss on debt extinguishment.

• New stores are currently a headwind to adjusted EBITDA, with profitability expected to be achieved by their second year of operations, impacting short-term financial results.