Q2 2024 Savers Value Village Inc Earnings Call Transcript
Key Points
- Savers Value Village Inc (SVV) reported strong performance in the US market, with consistent low single-digit increases in both transactions and average basket size.
- The company is on track to open 29 new stores this year, exceeding expectations, particularly in the US, which is a key growth market.
- Donation trends remain strong, with on-site and green droplet donations growing by 6% over the previous year.
- Off-site processing capabilities have improved, with cost per unit at the Edmonton central processing center approaching parity with traditional on-site processing.
- The loyalty program is experiencing double-digit growth in membership, indicating strong customer engagement and retention.
- The Canadian market underperformed due to macroeconomic challenges, including high household debt and rising mortgage and rent costs, impacting consumer spending.
- Comparable store sales in Canada declined by 3.1%, driven by decreases in both transactions and average basket size.
- New store openings and off-site processing investments are creating short-term pressure on profit margins.
- The company lowered its full-year 2024 outlook for total net sales and adjusted EBITDA due to ongoing challenges in the Canadian market.
- There is a risk of further economic deterioration in Canada, which could negatively impact sales and profitability.
Good afternoon, and welcome to Savers Value VIllage conference call to discuss financial results for the second quarter ending June 29, 2024. (Operator Instructions) Please note that this call is being recorded and a replay of this call materials will be available on the company's Investor Relations website. The comments made during this call and the Q&A that follows are copyrighted by the company and cannot be reproduced without written authorization from the company.
Certain comments made during this call may constitute forward-looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from expectations for historical performance. Please review the disclosure on forward-looking statements included in the company's earnings release, and filings with the SEC for a discussion on these risks and uncertainties. Please be advised that the statements are current only as of the date of this call. And while the company may choose to update these statements in the future is under no obligation to do so unless required
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