Savers Value Village, Inc. Discloses Financial Performance for Q4 and Fiscal Year 2023

Savers Value Village, Inc. (NYSE: SVV), also known as “the Company,” has revealed its financial performance for the thirteen weeks ending December 30, 2023 (fourth quarter) and the fifty-two weeks ending December 30, 2023 (fiscal 2023).

Highlights for Q4 2023, Compared to Q4 2022:

  1. Net sales saw a 4.4% increase, reaching $382.8 million, with constant currency net sales rising by 4.5% to $383.5 million.
  2. Comparable store sales rose by 2.6%, with the U.S. and Canada experiencing increases of 3.1% and 2.0%, respectively.
  3. Sales yield increased by 2.0% to $1.54 per pound.
  4. The Company expanded with the opening of five new stores during the fourth quarter, totaling 326 stores by the quarter’s end.
  5. Net income surged by 66.0% to $43.9 million, or $0.27 per diluted share, compared to $26.4 million, or $0.18 per diluted share, in the same quarter of the previous year.
  6. Adjusted net income and Adjusted net income per diluted share stood at $25.4 million and $0.15, respectively.
  7. Adjusted EBITDA increased by 5.0% to $83.1 million, with an Adjusted EBITDA margin increase of 10 basis points to 21.7%. Adjusted EBITDA included a $0.1 million negative impact from changes in foreign currency rates.

CEO Mark Walsh commented:

“We finished the year on a strong note and are pleased with the underlying performance and resiliency of our business.”

Balance Sheet Highlights:

  1. As of December 30, 2023, cash and cash equivalents amounted to $180.0 million, up from $112.1 million on December 31, 2022.
  2. Total borrowings as of December 30, 2023, were $816.8 million, resulting in a net leverage of 2.0x.
  3. No borrowings were recorded under the $75.0 million revolving credit facility as of December 30, 2023.
  4. An amendment to the Senior Secured Credit Facilities on January 30, 2024, led to a reduction of approximately 175 basis points on existing borrowings under the Term Loan Facility.

Fiscal 2024 Outlook:

For the fifty-two weeks ending December 28, 2024, the Company anticipates:

  1. The opening of approximately 22 new stores.
  2. Total net sales ranging from approximately $1.57 to $1.59 billion.
  3. Comparable store sales growth of approximately 2% to 3%.
  4. Net income of about $78 million.
  5. Adjusted net income of approximately $123 million.
  6. Adjusted EBITDA of around $340 million.
  7. Capital expenditures in the range of $105 to $115 million.
  8. GAAP-based diluted weighted average common shares outstanding of approximately 172 million.

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