Savers Value Village Q1 2025: Contradictions on Canadian Performance, Consumer Behavior, and Tariff Impact

Canadian business performance and outlook, Canadian consumer behavior and income cohorts, U.S. market performance and customer cohorts, impact of tariffs and pricing strategy, tariffs and pricing strategy are the key contradictions discussed in Savers Value Village's latest 2025Q1 earnings call.



Strong U.S. Performance and New Store Growth:
- Savers Value Village reported nearly double-digit sales growth and healthy comparable store sales (comps) in the U.S., with new store openings performing as expected.
- This growth was driven by increases in both transactions and average basket size, and the company is accelerating new store growth in the U.S. starting in 2025.

Canadian Business Improvement:
- The Canadian business saw positive comparable store sales for the first time since the fourth quarter of 2023, with a 310 basis point sequential comparable store sales improvement.
- This improvement was attributed to the focus on providing a compelling selection at great value amidst stable economic conditions.

Impact of Tariffs and Pricing Strategy:
- Savers has minimal exposure to tariffs due to its hyperlocal sourcing model, allowing it to maintain a strong value proposition with an AUR (Average Unit Retail) around $5.
- The company plans to capitalize on potential pricing gaps in the retail sector by expanding its loyalty program and attracting new customers.

Operational Efficiency and Processing Centers:
- Savers opened its sixth off-site processing center, which is expected to service more than half of its new stores, enhancing operational efficiency.
- The company is leveraging best practices across North America, enabling new CPCs to scale efficiently and reduce costs per unit.