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Sep 30, 2023
Savers Q3 2023 Earnings Report
Savers Value Village, Inc. reported strong Q3 2023 results with sales increase and comparable store sales growth.
Key Takeaways
Savers Value Village, Inc. announced a 3.8% increase in net sales to $392.7 million in the third quarter, with a 3.7% growth in comparable store sales. Adjusted EBITDA increased by 6.3% to $91.0 million. The company also authorized a $50 million share repurchase program.
Net sales increased by 3.8% to $392.7 million.
Comparable store sales grew by 3.7%, with the U.S. and Canada up 3.3% and 4.3%, respectively.
Sales yield increased by 5.6% to $1.50 per pound.
Adjusted EBITDA increased 6.3% to $91.0 million, with a margin increase of 60 basis points to 23.2%.
Savers
Savers
Savers Revenue by Geographic Location
Revenue by Geographic Location
U.S. Retail Revenue
CapyFin.comCanada Retail Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company is updating certain components of its annual guidance for the fifty-two weeks ended December 30, 2023.
Positive Outlook
- The opening of approximately 12 new stores (unchanged).
- Comparable store sales growth of 0% to 1.0% for the fourth quarter, resulting in a fiscal 2023 increase of approximately 4.0%.
- Net income of approximately $24 million.
- Adjusted net income of approximately $99 million
- Adjusted EBITDA of approximately $320 million
Challenges Ahead
- Total net sales of approximately $1.49 billion (from $1.51 billion).
- Comparable store sales growth of 0% to 1.0% for the fourth quarter (no previous guidance), resulting in a fiscal 2023 increase of approximately 4.0% (from 5.0%).
- Since providing our prior outlook, our estimated average exchange rate for the fourth quarter has decreased to $0.725 from $0.75 for the Canadian dollar, negatively impacting the Company’s fourth quarter sales and adjusted EBITDA estimates by approximately $6 million and $1 million, respectively.
- Capital expenditures in the range of $100 to $105 million (unchanged).
- GAAP-based diluted weighted average common shares outstanding of approximately 157 million (from 160 million).
Revenue & Expenses
Visualization of income flow from segment revenue to net income