Savers Value Village 2025 Q2 Earnings Surpassing Estimates with Net Income Up 94.8%

Savers Value Village (SVV) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company posted strong financial results, with revenue increasing by 7.9% to $417.21 million compared to the previous year, and net income soaring 94.8% to $18.92 million. The earnings per share (EPS) doubled from $0.06 to $0.12, indicating significant growth. SVV raised its fiscal 2025 guidance, now expecting net sales between $1.67 billion and $1.69 billion, with comparable store sales growth projected at 3.0% to 4.5%. This guidance adjustment reflects confidence in the company's strong U.S. comparable store sales and improved performance in Canada.

Revenue
Savers Value Village's total revenue for the second quarter of fiscal 2025 reached $417.21 million, marking a 7.9% increase from $386.66 million in the same quarter of the previous year.

Earnings/Net Income
Savers Value Village’s EPS rose to $0.12 in 2025 Q2 from $0.06 in 2024 Q2, reflecting robust earnings growth. The company's net income surged 94.8% to $18.92 million, showcasing continued profitability.

Post Earnings Price Action Review
The strategy of purchasing Savers Value Village shares following a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days has led to disappointing results over the past three years. This approach yielded a return of -37.85%, significantly underperforming the benchmark return of 39.13%, resulting in an excess return of -76.98%. The strategy's compound annual growth rate (CAGR) was -20.58%, highlighting substantial losses over the period. Despite experiencing no additional loss during the holding period, the initial investment faced a significant decline, as evidenced by the maximum drawdown of 0.00%. Investors are advised to reassess this strategy given its historical performance.

CEO Commentary
Mark Walsh, Chief Executive Officer of Savers Value Village, Inc., expressed pride in the company's second quarter results, highlighting strong U.S. comparable store sales and improved performance in Canada. He noted that the company's sharp value and compelling assortment are resonating well with consumers. Given the ongoing business momentum, Walsh indicated confidence in the company's trajectory, leading to an increase in fiscal 2025 guidance.

Guidance
The company is updating its fiscal 2025 outlook, projecting net sales between $1.67 billion and $1.69 billion, an increase from the previous range of $1.61 billion to $1.65 billion. It anticipates comparable store sales growth of 3.0% to 4.5%, up from 0.5% to 2.5%. Net income is expected to be in the range of $47 million to $58 million, with adjusted net income projected between $67 million and $78 million. Adjusted EBITDA is forecasted at $252 million to $267 million.

Additional News
In recent non-earnings related developments, Savers Value Village has completed a secondary public offering, where certain Ares Management Private Equity funds and the company's CEO sold 15 million shares of common stock. Concurrently, the company repurchased 2.3 million shares for $20 million using existing cash, separate from its November 2023 repurchase program. This strategic move was managed by leading financial institutions, including J.P. Morgan, Jefferies, Goldman Sachs & Co. LLC, and UBS Investment Bank. Additionally, Savers Value Village announced the pricing of these shares at $9.25 per share and provided underwriters a 30-day option to purchase an additional 2.25 million shares, underscoring the company's proactive approach in optimizing its capital structure.