Savers Value Village, Inc. Announces Preliminary Fourth Quarter and Full Year Net Sales and Participation in the ICR Conference
Remains Comfortable with Previously Provided Adjusted EBITDA Guidance
On an unaudited preliminary basis, the Company expects the following:
-
Net sales for the fourth quarter of 2023 of approximately
, representing growth of$382.8 million 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% , withthe United States increasing approximately3.1% andCanada increasing approximately2.0% -
Net sales for fiscal 2023 of approximately
, representing growth of approximately$1.50 billion 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% , withthe United States increasing approximately4.4% andCanada increasing approximately5.0%
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
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
1 Amounts presented on a constant currency basis are not measures recognized under |
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
About the Savers Value Village™ family of thrift stores
As the largest for-profit thrift operator in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
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
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
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
Source: Savers Value Village, Inc.