I maintain a hold rating for Savers Value Village due to ongoing margin pressures, inventory risks, and a stretched valuation despite positive SSS growth. 1Q25 earnings showed 4.5% sales growth, driven by 2.8% SSS growth, but margins deteriorated significantly due to expansion costs and rising operating expenses. Margins face further downside from aggressive store openings and elevated operating expenses, with inventory growth outpacing sales, posing additional risks.
Savers Value Village, Inc. (NYSE:SVV ) Q1 2025 Results Conference Call May 1, 2025 4:30 PM ET Company Participants Mark Walsh - Chief Executive Officer Michael Maher - Chief Financial Officer Jubran Tanious - President & Chief Operating Officer Conference Call Participants Randy Konik - Jefferies Michael Lasser - UBS Matthew Boss - JPMorgan Mark Altschwager - Baird Brooke Roach - Goldman Sachs Peter Keith - Piper Sandler Anthony Chukumba - Loop Capital Markets Operator Good afternoon, and welcome to Savers Value Villages conference call to discuss financial results for the first quarter ending March 29, 2025. [Operator Instructions].
The headline numbers for Savers Value (SVV) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
7 Aug 2025 (In 3 weeks) Date | | 0.24 Cons. EPS | - EPS |
21 Feb 2025 Date | | 0.13 Cons. EPS | 0.1 EPS |
8 Nov 2024 Date | | 0.17 Cons. EPS | 0.15 EPS |
9 Aug 2024 Date | | 0.2 Cons. EPS | 0.14 EPS |
10 May 2024 Date | | 0.08 Cons. EPS | 0.08 EPS |
7 Aug 2025 (In 3 weeks) Date | | 0.24 Cons. EPS | - EPS |
21 Feb 2025 Date | | 0.13 Cons. EPS | 0.1 EPS |
8 Nov 2024 Date | | 0.17 Cons. EPS | 0.15 EPS |
9 Aug 2024 Date | | 0.2 Cons. EPS | 0.14 EPS |
10 May 2024 Date | | 0.08 Cons. EPS | 0.08 EPS |
Specialty Retail Industry | Consumer Cyclical Sector | Mark T. Walsh CEO | NYSE Exchange | 80517M109 Cusip |
US Country | 22,700 Employees | - Last Dividend | - Last Split | 29 Jun 2023 IPO Date |
Savers Value Village, Inc., originally known as S-Evergreen Holding LLC before its name change in January 2022, stands as a prominent retailer of second-hand merchandise. Founded in 1954 and headquartered in Bellevue, Washington, the company has expanded its footprint across the United States, Canada, and Australia. It operates a variety of store brands including Savers, Value Village, Value Village Boutique, Village des Valeurs, Unique, and 2nd Avenue. The company has built a unique business model centered around purchasing secondhand goods from non-profit partners, thereby not only contributing to the sustainability cause by encouraging the recycling and reuse of goods but also supporting charitable organizations.
This includes a wide range of clothing, bedding, and bath items. These products are sourced from non-profit partners, processed for quality, and then sold in stores. The spectrum of textiles allows shoppers to find unique items while contributing to a more sustainable consumption model.
Shoes of various styles, sizes, and for different age groups are available. By purchasing second-hand shoes, customers not only save money but also play a part in reducing environmental waste.
This category covers a broad selection of items including belts, hats, jewelry, and more, catering to a diverse customer base looking for affordable fashion options.
The range of second-hand housewares includes kitchen items, decorative pieces, and small appliances, offering a sustainable alternative to buying new for consumers looking to outfit their homes on a budget.
From novels and biographies to cookbooks and children’s stories, a variety of genres are available for readers of all ages. This not only promotes literacy but also supports the idea of reusing and recycling books.
These include items that do not neatly fit into the other categories but are nonetheless essential to offering a comprehensive shopping experience. Examples might range from electronic gadgets to sports equipment, all second-hand, providing a wide array of options to customers.
The company serves both retail and wholesale customers, thereby broadening its market presence and impact. Through its detailed processing and merchandising practices, Savers Value Village, Inc. ensures that all items put up for sale meet a certain standard of quality, making second-hand shopping a reliable and appealing option for a wide demographic.