Remains Comfortable with Previously Provided
Adjusted EBITDA Guidance
Savers Value Village, Inc. (NYSE: SVV), (the “Company”) today
announced preliminary net sales for the thirteen weeks ended
December 30, 2023 (the "fourth quarter of 2023") and the fifty-two
weeks ended December 30, 2023 ("fiscal 2023") in conjunction with
the Company’s participation in the ICR Conference January 8-10,
2024.
On an unaudited preliminary basis, the Company expects the
following:
- Net sales for the fourth quarter of 2023 of approximately
$382.8 million, representing growth of 4.4% compared to the prior
year period
- Constant currency net sales1 to increase approximately 4.5% on
a year-over-year basis in the fourth quarter of 2023
- Comparable store sales for the fourth quarter of 2023 to
increase approximately 2.6%, with the United States increasing
approximately 3.1% and Canada increasing approximately 2.0%
- Net sales for fiscal 2023 of approximately $1.50 billion,
representing growth of approximately 4.4% compared to the prior
year period
- Constant currency net sales1 to increase approximately 6.0% on
a year-over-year basis in 2023
- Comparable store sales for fiscal 2023 are expected to increase
approximately 4.7%, with the United States increasing approximately
4.4% and Canada increasing approximately 5.0%
Based on the preliminary fourth quarter and fiscal 2023 net
sales results outlined above, the Company remains comfortable with
its previously provided fiscal 2023 Adjusted EBITDA2 outlook of
approximately $320 million.
Mark Walsh, Chief Executive Officer, commented, “We are pleased
with the progression of our sales trends and our store openings in
the fourth quarter. Comparable store sales accelerated as the
quarter progressed, capped off by a strong December. We believe
such trends reflect our strong underlying secular growth trend and
the diminished impact of weather headwinds early in the quarter. In
line with our plans, we also opened three new stores in the United
States and two new stores in Canada in the fourth quarter, and
remain confident in our ability to ramp new store growth to the
target of 22 in 2024. With the strength in our sales and demand
trends, and our continued focus on margins and cash flow through
our vertically integrated model, we remain comfortable with our
full year 2023 Adjusted EBITDA target of $320 million.”
1 Amounts presented on a constant currency
basis are not measures recognized under U.S. generally accepted
accounting principles (“U.S. GAAP”). For additional information on
our use of non-GAAP financial measures, see the explanations below
of “Non-GAAP Financial Measures” and “Constant Currency”.
2 We have not reconciled guidance for
Adjusted EBITDA to the corresponding GAAP financial measure because
we cannot determine the probable significance of the various
reconciling items, as certain items are outside of our control and
cannot be reasonably predicted due to the fact that these items
could vary significantly period to period. Accordingly,
reconciliations to the corresponding GAAP financial measure is not
available without unreasonable effort.
Participation in the ICR
Conference
The Company will participate in the 2024 ICR Conference January
8-10, 2024 in Orlando, Florida. Mark Walsh, CEO, Jubran Tanious,
COO, and Jay Stasz, CFO will be meeting with investors and doing a
fireside chat presentation at 3:30 pm Eastern Standard Time on
Monday, January 8, 2024. The audio portion of the fireside chat
presentation will be webcast live over the internet and can be
accessed on the Company’s Investor Relations website at
https://ir.savers.com. An online archive will be available on that
site following the presentation.
About the Savers Value Village™ family of thrift
stores
As the largest for-profit thrift operator in the United States
and Canada for value priced pre-owned clothing, accessories and
household goods, our mission is to champion reuse and inspire a
future where secondhand is second nature. Learn more about the
Savers family of thrift stores, our impact, and the #ThriftProud
movement at savers.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward looking statements can be identified by words such as
“could,” “may,” “might,” “will,” “likely,” “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“continues,” “projects” and similar references to future periods,
or by the inclusion of forecasts or projections, the outlook for
the Company’s future business, prospects, financial performance,
including the amount and timing of any repurchases of common stock
under its share repurchase program, its fiscal 2023 outlook or
financial guidance, and industry outlook. Forward-looking
statements are based on the Company’s current expectations and
assumptions regarding its business, the economy and other future
conditions. Because forward-looking statements relate to the
future, by their nature, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, the Company’s actual results may
differ materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions, including, but not
limited to, legislation, national trade policy, and the following:
the Company’s failure to adequately procure and manage its
inventory or anticipate consumer demand; changes in consumer
confidence and spending; risks associated with its status as a
“brick and mortar” only retailer; risks associated with intense
competition; its failure to open new profitable stores, or
successfully enter new markets on a timely basis or at all; the
risks associated with doing business with international
manufacturers and suppliers including, but not limited to,
transportation and shipping challenges, and potential increases in
tariffs on imported goods; outbreak of viruses or widespread
illness, including the continued impact of COVID-19 and continuing
or renewed regulatory responses thereto; risks associated with
heightened geopolitical instability due to the conflicts in the
Middle East and Eastern Europe; its inability to operate its stores
due to civil unrest and related protests or disturbances; its
failure to properly hire and to retain key personnel and other
qualified personnel; its inability to obtain favorable lease terms
for its properties; the failure to timely acquire, develop and
open, the loss of, or disruption or interruption in the operations
of, its centralized distribution centers; fluctuations in
comparable store sales and results of operations, including on a
quarterly basis; risks associated with its lack of operations in
the growing online retail marketplace; risks associated with
litigation, the expense of defense, and the potential for adverse
outcomes; its inability to successfully develop or implement its
marketing, advertising and promotional efforts; the seasonal nature
of its business; risks associated with the timely and effective
deployment, protection, and defense of computer networks and other
electronic systems, including e-mail; changes in government
regulations, procedures and requirements; risks associated with
natural disasters, whether or not caused by climate change; and its
ability to service indebtedness and to comply with its financial
covenants together with each of the other factors set forth under
the heading “Risk Factors” in its filings with the United States
Securities and Exchange Commission (“SEC”). Any forward-looking
statement made by us in this press release speaks only as of the
date on which it is made. Factors or events that could cause the
Company’s actual results to differ materially from those in the
forward-looking statements may emerge from time to time, and it is
not possible for us to predict all of them. The Company is not
under any obligation (and specifically disclaims any such
obligation) to update or alter these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with
GAAP. Adjusted EBITDA is a non-GAAP financial measure. The Company
has included this non-GAAP measure in this press release as it is a
key measure used by its management and its board of directors to
evaluate its operating performance and the effectiveness of its
business strategies, make budgeting decisions, and evaluate
compensation decisions. Adjusted EBITDA has limitations as an
analytical tool and you should not consider it in isolation or as a
substitute for analysis of the Company’s results as reported under
GAAP. There are limitations to using non-GAAP financial measures,
including those amounts presented in accordance with the Company’s
definition of Adjusted EBITDA, as it may not be comparable to
similar measures disclosed by its competitors, because not all
companies and analysts calculate Adjusted EBITDA in the same
manner. Because of these limitations, you should consider Adjusted
EBITDA alongside other financial performance measures, including,
as applicable, net income and the Company’s other GAAP results. The
Company presents Adjusted EBITDA because we consider this a
meaningful measure to share with investors because it best allows
comparison of the performance of one period with that of another
period. In addition, Adjusted EBITDA affords investors a view of
what management considers its operating performance to be and the
ability to make a more informed assessment of such operating
performance as compared with that of the prior period.
The Company defines Adjusted EBITDA as net (loss) income
excluding the impact of interest expense, net, income tax expense
(benefit), depreciation and amortization, loss on extinguishment of
debt, stock-based compensation expense, non-cash occupancy-related
costs, lease intangible asset expense, pre-opening expenses, store
closing expenses, executive transition costs, transaction costs,
dividend-related bonus, (gain) loss on foreign currency, and
certain other adjustments.
Constant Currency
The Company reports certain operating results on a
constant-currency basis in order to facilitate period-to-period
comparisons of its results without regard to the impact of
fluctuating foreign currency exchange rates. The term foreign
currency exchange rates refer to the exchange rates used to
translate the Company's operating results for all countries where
the functional currency is not the U.S. Dollar into U.S. Dollars.
Because the Company is a global company, foreign currency exchange
rates used for translation may have a significant effect on its
reported results. In general, the Company's financial results are
affected positively by a weaker U.S. Dollar and are affected
negatively by a stronger U.S. Dollar. References to operating
results on a constant-currency basis mean operating results without
the impact of foreign currency exchange rate fluctuations.
The Company believes disclosure of constant-currency results is
helpful to investors because it facilitates period-to-period
comparisons of its results by increasing the transparency of its
underlying performance by excluding the impact of fluctuating
foreign currency exchange rates. However, constant-currency results
are non-GAAP financial measures and are not meant to be considered
as an alternative or substitute for comparable measures prepared in
accordance with GAAP. Constant-currency results have no
standardized meaning prescribed by GAAP, are not prepared under any
comprehensive set of accounting rules or principles and should be
read in conjunction with the Company's consolidated financial
statements prepared in accordance with GAAP. Constant-currency
results have limitations in their usefulness to investors and may
be calculated differently from, and therefore may not be directly
comparable to, similarly titled measures used by other
companies.
Constant currency information compares results between periods
as if exchange rates had remained constant period-over-period. To
present constant currency information, our current operating
results in currencies other than the U.S. Dollar are converted into
U.S. Dollars using the average exchange rates from the comparative
prior period rather than the actual average exchange rates in
effect.
Constant-currency
The Company calculates constant-currency net sales by
translating current period net sales using the average exchange
rates from the comparative prior period rather than the actual
average exchange rates in effect. The Company’s constant-currency
net sales are not financial measures prepared in accordance with
GAAP.
A reconciliation of GAAP net sales to constant-currency net
sales for the thirteen and fifty-two weeks ended December 30, 2023
and December 31, 2022 is presented in the table below:
Thirteen Weeks Ended
(dollars in thousands)
December 30, 2023
December 31, 2022
$ Change
% Change
Net sales
$
382,765
$
366,802
$
15,963
4.4
%
Impact of foreign currency
690
n/a
690
n/m
Constant-currency net sales
$
383,455
$
366,802
$
16,653
4.5
%
Fifty-Two Weeks Ended
(dollars in thousands)
December 30, 2023
December 31, 2022
$ Change
% Change
Net sales
$
1,500,249
$
1,437,229
$
63,020
4.4
%
Impact of foreign currency
23,803
n/a
23,803
n/m
Constant-currency net sales
$
1,524,052
$
1,437,229
$
86,823
6.0
%
n/a - not applicable
n/m - not meaningful
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240105253160/en/
Investors: John Rouleau/Lyn Walther ICR, Inc.
Investors@savers.com
Media: Edelman Smithfield | 713.299.4115 |
Savers@edelman.com Savers | 206.228.2261 | sgaugl@savers.com
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