Overview
Savers Value Village Q2 net sales rise 7.9%, beating analyst expectations
Company raises fiscal 2025 outlook, reflecting confidence in business momentum
Savers repurchased shares under existing program and secondary offering
Outlook
Company raises fiscal 2025 net sales outlook to $1.67 bln-$1.69 bln
Savers Value Village expects fiscal 2025 net income $47 mln-$58 mln, or $0.29 to $0.36 per share
Company projects fiscal 2025 adjusted EBITDA $252 mln-$267 mln
Savers Value Village anticipates comparable store sales growth of 3.0%-4.5%
Result Drivers
U.S. SALES GROWTH - Net sales in the U.S. increased by 10.5%, with comparable store sales rising 6.2%, driven by strong value and product assortment, according to CEO Mark Walsh
CANADIAN PERFORMANCE - Canadian net sales grew by 3.4%, with a 2.6% increase in comparable store sales, despite macroeconomic pressures
STORE EXPANSION - Company opened 4 new stores, contributing to a total of 354 stores by the end of the qtr
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$417.21 mln
$407.70 mln (9 Analysts)
Q2 EPS
$0.12
Q2 Net Income
$18.92 mln
Q2 Basic EPS
$0.12
Q2 Operating Expenses
$383.19 mln
Q2 Operating Income
$34.02 mln
Q2 Pretax Profit
$26.61 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Savers Value Village Inc is $13.00, about 24.5% above its July 30 closing price of $9.82
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release: ID:nBw27My0Wa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)