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- **U.S. Momentum**: 10.5% sales growth, 7.1% comp store growth, and 20% target store margin highlight strong U.S. expansion.
- **Canada Resilience**: 3.9% comp growth despite macro challenges, with focus on cost control and efficiency.
- **Debt Optimization**: $17M annual interest savings from refinancing, targeting 2x net leverage by 2026.
- **2025 Outlook**: Tightened guidance reflects U.S. strength and cautious Canadian outlook, with adj. EBITDA $252-257M.

**【CEO Summary Section】**
- **U.S. Sales Growth**: 10.5% net sales increase, driven by 7.1% comp store sales growth, with strong transaction and basket growth.
- **Canada Progress**: 3.9% comp sales growth, fourth consecutive quarter of improvement, despite macroeconomic challenges.
- **New Store Expansion**: 10 new stores opened in Q3, on track for 25 in 2025, targeting 20% store-level contribution margin.
- **Financial Highlights**: $70 million adjusted EBITDA, 16.4% margin, and $50 million share buyback authorization.
- **Debt Refinancing**: $17 million annual interest expense savings, reducing net leverage to under 2x by 2026.

**【CFO Financial Commentary】**
- **Net Sales**: $427 million (8.1% YoY), with U.S. at $235 million (10.5% YoY) and Canada at $161 million (5.1% YoY).
- **Gross Margin**: 80 bps increase in COGS due to new stores and Canadian production adjustments.
- **Expenses**: Salaries/wages up 220 bps to 18.8%, SG&A up 19% to $100 million, including $4 million impairment charge for 6 store closures.
- **Outlook**: 2025 net sales $1.67-1.68B, adj. EBITDA $252-257M, adj. EPS $0.44-0.46.

**【Q&A Highlights】**
- **Canada Strategy**: Focused on sharp pricing, selection, and efficiency; expects low-single-digit comps in 2026.
- **U.S. Expansion**: Entering Tennessee, North Carolina, and Atlanta; 75-80% of 2026 capital allocated to U.S. growth.
- **Processing Efficiency**: Balanced production with demand, exiting Q3 at equilibrium; targeting 2026 EBITDA margin expansion.
- **Loyalty Program**: 6.1 million active members, driving repeat purchases and trade-down trends in both markets.
- **Tariff Impact**: No direct exposure, but monitoring U.S. apparel price increases for potential value gap opportunities.

Savers Value Village, Inc. (SVV) Q3 2025 Earnings Call Transcript

- **U.S. Growth Accelerates**: 10.5% net sales growth, 6.2% comp store sales driven by younger, affluent customers.
- **Canada Turning Positive**: 3rd straight quarter of comp improvement (2.6% Q2), production investments paying off.
- **New Store Pipeline Strong**: 25 openings in 2025, targeting 20% store-level margin.
- **Financial Strength**: $69M adjusted EBITDA (16.5% margin), $71M cash, share buybacks ongoing.
- **Guidance Raised**: FY2025 net sales $1.67-1.69B, adj. EBITDA $252-267M, 25 new stores.

**【CEO Summary Section】**
- **U.S. Sales Growth**: 10.5% net sales increase, driven by 6.2% comp store sales growth (transactions and basket size). Younger, affluent customers are key growth drivers. 
- **Canada Progress**: 2.6% comp store sales growth (200bps improvement vs. Q1), 3rd consecutive quarter of sequential improvement. New production levels and selection are fueling momentum despite macro challenges.
- **New Store Expansion**: 4 stores opened in Q2, guiding to 25 total openings in 2025. New stores performing in line with expectations, targeting 20% store-level contribution margin.
- **Loyalty Program**: 6 million active members, generating $69M adjusted EBITDA (16.5% of sales).
- **Updated Guidance**: Raised FY2025 outlook to $1.67-1.69B net sales, $0.29-0.36 EPS, $252-267M adjusted EBITDA.

**【CFO Financial Commentary】**
- **Q2 Financials**: 
  - Total net sales: $417M (+7.9% YoY)
  - U.S. segment profit: $49M (flat vs. prior year)
  - Canada segment profit: $39M (-$5M YoY due to production investments)
  - Adjusted EBITDA: $69M (16.5% margin)
- **Key Drivers**: 
  - COGS as % of sales: +270bps to 44.8% (Canada production, new stores)
  - SG&A as % of sales: -40bps to 21.2% (expense discipline)
  - Cash balance: $71M; share buybacks: 2.7M shares ($8.86 avg price)
- **FY2025 Outlook**: 
  - Net sales: $1.67-1.69B
  - Adj. EBITDA: $252-267M
  - New store openings: 25
  - CAPEX: $125-140M

**【Q&A Highlights】**
- **Sales Momentum**: Q2 sales growth accelerated in both U.S. and Canada, with trend continuing into July. Q3 expects high single-digit total sales growth, Q4 mid-teens (+53rd week).
- **Margin Impact**: Q2 was peak impact from Canada production and 2 Peaches conversions. Gross margins expected to normalize in H2, with EBITDA margin trough in 2025.
- **Real Estate**: 25 new stores guided for 2025, pipeline strong for 2026+. Southeast expansion via 2 Peaches conversions accelerating.
- **Labor Costs**: Hourly wages growing in line with historical trends, no unusual inflation pressures.
- **FX Impact**: Stronger Canadian dollar (+$0.73/USD) boosting sales but hedged to limit EBITDA impact.

Savers Value Village (SVV)-31 Jul 25-2025 Q2 Earnings call transcript

- **U.S. Dominance**: Near double-digit sales growth driven by transaction and basket expansion, with new stores performing in-line with expectations.
- **Canada Turnaround**: First positive comp since Q4 2023, with sequential improvement to +0.6% on a constant currency basis.
- **Tariff-Proof Model**: 90%+ local supply keeps AUR at $5, avoiding tariff impact while peers face headwinds.
- **2025 Growth**: 25-30 new stores to drive $1.6B+ sales, with EBITDA margin expansion expected post-2025 as new stores mature.

**【CEO Opening Remarks】**
- **U.S. Sales Growth**: Near double-digit growth driven by transactions and basket size, with strong performance in both new and existing stores.
- **Canada Recovery**: First positive comp since Q4 2023, supported by stable macro conditions and improved assortment.
- **New Store Expansion**: 25-30 new stores planned for 2025, with 2 already opened this quarter. New stores achieve profitability by year 2.
- **Loyalty Program**: Active members reach 6 million, with 72% of sales from loyalty members.
- **Tariff Resilience**: 90%+ of supply sourced locally, minimizing tariff exposure and maintaining $5 AUR pricing advantage.

**【CFO Financial Review】**
- **Q1 2025 Results**: 
  - Total net sales: $370M (+4.5% YoY)
  - Adjusted EBITDA: $43M (11.6% margin)
  - GAAP net loss: $4.7M; Adjusted net income: $3.6M
- **Key Drivers**: 
  - U.S. segment profit: $39M (down $1.6M due to new store growth)
  - Canada segment profit: $25.3M (down $9.4M due to FX and cost deleverage)
  - 74% of supply from on-site donations vs. 72% YoY
- **2025 Outlook**: 
  - Net sales: $1.61B-$1.65B
  - Comparable store sales: 0.5%-2.5%
  - Adjusted EBITDA: $245M-$265M
  - New stores expected to be $10M EBITDA headwind in 2025, maturing into growth in 2026+

Savers Value Village (SVV)-1 May 25-2025 Q1 Earnings call transcript

- **U.S. Growth Engine**: Q4 U.S. sales up 10.5%, with 4.7% comp growth driven by transaction and basket size expansion.
- **New Store Ambition**: 25-30 new stores in 2025 targeting 20% EBITDA margins, despite $10M short-term EBITDA drag.
- **Canada Turning Point**: Sequential comp improvement of 500 bps in Q4, with Q1 2025 showing early signs of stabilization.
- **Loyalty Dominance**: 72% of sales from loyalty members, up 200 bps YoY, underscoring customer retention strength.
- **2026 Profit Inflection**: Maturing new stores will drive EBITDA growth acceleration starting in 2026.

**【CEO Summary Section】**
- **U.S. Business Strength**: Q4 net sales increased 10.5% to $220 million, with comparable store sales up 4.7%, driven by transaction growth and higher average basket sizes.
- **Canada Improvement**: Sequential comp sales improved 500 basis points in Q4, though still below target. Management attributes this to rebalanced inventory levels and price adjustments.
- **New Store Expansion**: Opened 9 new stores in Q4, meeting 2024 target of 22 openings. 2025 plan is 25-30 new stores, targeting 20% store-level adjusted EBITDA margins.
- **Loyalty Growth**: Active loyalty members grew double-digit YoY, accounting for 72% of Q4 sales (vs. 70% last year).

**【CFO Financial Commentary】**
- **Q4 Financials**: Total net sales $402 million (+5% YoY), adjusted EBITDA $74 million (18.4% margin). U.S. segment profit $49.8 million, Canada $40.3 million (both down YoY due to new store costs).
- **Cost Structure**: COGS margin expanded 230 bps to 44.3%, SG&A rose 230 bps to 22.9%, driven by new store expenses.
- **2025 Outlook**: Net sales $1.61-1.65 billion, adjusted EBITDA $245-265 million. Expect $10 million EBITDA headwind from new stores and $6.5 million impact from weaker CAD.
- **Share Repurchases**: Repurchased 1.1 million shares in Q4 at $9.67 average price, with $18 million remaining under current authorization.

**【Q&A Key Takeaways】**
- **Canada Recovery Path**: Management expects 2025 to be an "investment year" for Canada, with cautious comp growth assumptions. Positive trends in Q1 but weather-related volatility in February.
- **New Store Economics**: New stores lose money in Year 1 but become profitable by Year 2, with 20%+ EBITDA margins by Year 5. 2025 will have 50+ stores in their first year of operation.
- **Loyalty Program Impact**: 72% of sales from loyalty members highlights the company's ability to retain high-value customers despite macro challenges.
- **2026 Inflection Point**: As 2024/2025 new stores mature, expect accelerating profit contributions and improved EBITDA growth rates.


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