BELLEVUE, Wash. - Savers Value Village, Inc. (NYSE: SVV), a leading thrift store chain, reported first-quarter earnings that fell short of Wall Street estimates.
The company announced an adjusted EPS of $0.08, which was $0.01 below the analyst consensus of $0.09. Revenue for the quarter was $354.2 million, also missing the consensus estimate of $366.9 million.
Despite the earnings miss, the company's revenue guidance for fiscal year 2024 is set at $1.57 to $1.59 billion, aligning with analyst expectations of $1.58 billion. The stock experienced a marginal decrease of 0.1% following the earnings release, indicating a relatively muted investor response to the results.
CEO Mark Walsh commented on the quarter, stating, "Our first quarter results were in line with our expectations and guidance. Demand trends in the U.S. were strong and relatively consistent throughout the quarter, our new stores are performing well and ramping in line with plan, and the acquisition in Georgia provides an entry point into a new and high-growth region where we have no presence."
He also highlighted that the company plans to add a total of 29 net new stores this year, reflecting confidence in their expansion strategy.
The company's financial health was addressed by the CEO, who noted steps taken to strengthen the balance sheet, projecting a net leverage around 1.5 times by year-end.
The quarter saw a 2.5% increase in net sales compared to the same period last year, and a slight 0.3% rise in comparable store sales, with the U.S. up 2.3% and Canada down 2.6%. The company ended the quarter with 326 stores, marking a 2.8% increase in store count.
Savers Value Village's performance in the first quarter reflects a stable yet challenging retail environment, with a focus on strategic growth and market expansion, particularly with the acquisition of seven stores in the Atlanta, Georgia area.
The company's commitment to adding new stores and entering high-growth regions demonstrates a forward-looking approach to scaling its operations and reaching new customers.
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