Fri, May 2, 10:53 AM (14 days ago)
**Savers Value Village, Inc. (SVV) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue increased by 4.5% to $370.1 million, with constant-currency net sales up 7.1%. Comparable store sales rose by 2.8%. - **Profit Margins:** Operating income decreased to $10.4 million (2.8% of sales) from $16.3 million (4.6% of sales) in Q1 2024. Net loss was $4.7 million ($0.03 per diluted share), including a $2.7 million pre-tax loss on debt extinguishment. - **Adjusted EBITDA:** Adjusted EBITDA was $42.8 million (11.6% margin), down from $56.7 million (16.0% margin) in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $0.4 million, a significant improvement from a $5.8 million outflow in Q1 2024. Net cash used in investing and financing activities was $19.4 million and $58.5 million, respectively. **Key Metrics and Trends:** - **Store Count:** 353 stores as of Q1 2025, with 2 new stores opened. - **Loyalty Program:** Active members increased to nearly 6.0 million, driving 72.6% of retail sales. - **Pounds Processed:** 262 million pounds, with 74.0% from OSDs and GreenDrop. - **Segment Performance:** U.S. Retail sales increased by 9.4%, while Canada Retail sales decreased by 4.1% due to foreign exchange impacts. **Uncertainties and Future Operations:** - **Macroeconomic Conditions:** Uncertainty due to global trade policies and tariffs may impact consumer spending. - **Foreign Exchange:** Fluctuations in exchange rates, particularly the USD-CAD, affect financial results. - **Share Repurchases:** $11.8 million spent on repurchasing 1.4 million shares, with $6.4 million remaining under the program. - **Debt Management:** Partial redemption of Senior Secured Notes and ongoing debt management strategies. **Conclusion:** Savers Value Village, Inc. (SVV) showed mixed results in Q1 2025, with revenue growth but decreased profitability. The company continues to focus on expanding its store base, enhancing its loyalty program, and managing operational efficiencies. However, macroeconomic uncertainties and foreign exchange fluctuations pose risks to future performance. The company's strategic initiatives and debt management efforts will be crucial in navigating these challenges.