NYSE$SVV

Savers Value Village Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Savers Value Village, Inc. reported strong Q3 2023 results with sales increase and comparable store sales growth.

Savers Value Village, Inc. announced a 3.8% increase in net sales to $392.7 million in the third quarter, with a 3.7% growth in comparable store sales. Adjusted EBITDA increased by 6.3% to $91.0 million. The company also authorized a $50 million share repurchase program.

  • Net sales increased by 3.8% to $392.7 million.
  • Comparable store sales grew by 3.7%, with the U.S. and Canada up 3.3% and 4.3%, respectively.
  • Sales yield increased by 5.6% to $1.50 per pound.
  • Adjusted EBITDA increased 6.3% to $91.0 million, with a margin increase of 60 basis points to 23.2%.

Headline financials

Total Revenue

$393M

Previous: $226M+74.0%
EPS (adj)

$0.16

Previous: $0.11+45.5%
Total Comparable Store Sales Growth

3.7%

Previous: 8.0%-53.8%
U.S. Comparable Store Sales Growth

3.3%

Previous: 4.1%-19.5%
Canada Comparable Store Sales Growth

4.3%

Previous: 9.4%-54.3%
Total Number of Stores

321

Previous: 309+3.9%
U.S. Number of Stores

152

Previous: 149+2.0%
Canada Number of Stores

157

Previous: 150+4.7%
Pounds Processed

249

Previous: 255-2.4%
Sales Yield

$1.50

Previous: $1.42+5.6%
Capital Expenditures

-$74.6M

Previous: $22.8M-426.7%
Free Cash Flow

-$90.2M

Previous: $44.3M-303.7%
Net Income

-$15.6M

Previous: $15.5M-200.7%
Operating Income

$20.3M

Previous: $65.7M-69.0%
Gross Profit

$119M

Previous: $218M-45.5%
Cash & Equivalents

$125M

Previous: $116M+8.1%
Total Assets

$1.79B

No prior period
Stock-Based Comp

$49.1M

Previous: $799K+6046.8%

Revenue & EPS history

Savers · Revenue · Quarterly

$393M

Q3 2023+74%vs Q3 2022
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Forward guidance

The Company is updating certain components of its annual guidance for the fifty-two weeks ended December 30, 2023.

Tailwinds

  • The opening of approximately 12 new stores (unchanged).
  • Comparable store sales growth of 0% to 1.0% for the fourth quarter, resulting in a fiscal 2023 increase of approximately 4.0%.
  • Net income of approximately $24 million.
  • Adjusted net income of approximately $99 million
  • Adjusted EBITDA of approximately $320 million

Headwinds

  • Total net sales of approximately $1.49 billion (from $1.51 billion).
  • Comparable store sales growth of 0% to 1.0% for the fourth quarter (no previous guidance), resulting in a fiscal 2023 increase of approximately 4.0% (from 5.0%).
  • Since providing our prior outlook, our estimated average exchange rate for the fourth quarter has decreased to $0.725 from $0.75 for the Canadian dollar, negatively impacting the Company’s fourth quarter sales and adjusted EBITDA estimates by approximately $6 million and $1 million, respectively.
  • Capital expenditures in the range of $100 to $105 million (unchanged).
  • GAAP-based diluted weighted average common shares outstanding of approximately 157 million (from 160 million).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-2.8%

Avg return

Earnings day

-5.0%

Avg return

5 days after

-5.5%

Avg return

30 days after

44%

7 / 16 earnings

Positive

+17.7%

Q1 2025

Best reaction

-21.7%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-13.3%+5.1%
Q4 2025+2.5%-8.3%-23.6%
Q3 2025+4.1%+4.4%+13.4%
Q1 2025+17.7%+18.8%+5.4%
Q4 2024-19.4%-28.6%-37.7%
Q3 2024-6.1%-10.2%-11.2%
Q2 2024-9.3%-7.2%-6.9%
Q1 2023-21.7%-22.1%-23.4%
Q1 2024-15.9%-12.6%-19.1%
Q1 2022-6.0%-8.5%-12.5%
Q4 2023-5.5%-4.2%-10.6%
Q3 2022+7.2%+2.6%+37.5%
Q3 2023-19.2%-13.3%+4.7%
Q2 2022+8.9%+7.4%-3.1%
Q4 2022+8.9%+7.4%-3.1%
Q2 2023+10.2%+7.4%-2.1%
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q1 2019

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