Savers Value Village, Inc. reported its financial results for the thirteen weeks ended September 28, 2024, showing a modest increase in net sales to $394.8 million, up 0.5% from $392.7 million in the same period last year. The growth was driven by a 6.2% increase in U.S. retail sales, which reached $212.5 million, while Canadian sales declined by 7.1% to $151.9 million. Comparable store sales decreased by 2.4%, with U.S. stores up 1.6% and Canadian stores down 7.5%. The company opened nine new stores during the quarter, bringing the total to 344.

Total operating expenses for the quarter decreased to $346.2 million from $372.4 million, contributing to a significant rise in operating income to $48.6 million, compared to $20.3 million in the prior year. The company reported income before income taxes of $35.4 million, a turnaround from a loss of $9.2 million in the same quarter last year. Net income for the quarter was $21.7 million, compared to a loss of $15.6 million in the prior year, resulting in a net income margin of 5.5%.

For the thirty-nine weeks ended September 28, 2024, total net sales increased by 1.6% to $1.136 billion, with U.S. retail sales up 5.4% to $612.1 million. However, net income for this period was $30.9 million, a significant increase from $9.2 million in the previous year. Adjusted EBITDA for the quarter was $82.0 million, with an adjusted EBITDA margin of 20.8%.

Strategically, the company made a notable acquisition in May 2024, purchasing 2 Peaches Group, LLC for $5.4 million, marking its entry into the Georgia market. The acquisition included seven thrift store locations and was accounted for as a business combination. Additionally, the company has been actively managing its debt, with a reduction in long-term debt from $784.6 million at the end of 2023 to $735.3 million as of September 28, 2024.

The company also reported a decrease in total interest expense, down 17.3% to $15.3 million, attributed to a lower weighted average interest rate and face value of debt. However, cash and cash equivalents decreased to $137.7 million from $180.0 million at the end of 2023, reflecting a net cash used in financing activities of $64.1 million during the period.

Savers Value Village continues to face challenges in the Canadian market, with macroeconomic conditions affecting low-income consumers. The company is testing various strategies to enhance its Canadian operations, focusing on selection and pricing to improve foot traffic and conversion rates.