BELLEVUE, Wash. - Savers Value Village, Inc. (NYSE: SVV), a prominent thrift store chain, shared its preliminary net sales figures for the fourth quarter and the full fiscal year of 2023 on Friday. The company reported a 4.4% increase in net sales for the quarter ended December 30, 2023, reaching $382.8M, and a similar 4.4% growth for the fiscal year with sales of approximately $1.50B.
Comparable store sales, an important retail industry metric, rose by 2.6% during the fourth quarter, with a slightly higher increase in the United States at 3.1% and 2.0% in Canada. For the entire fiscal year, comparable store sales are expected to have increased by about 4.7%, with the U.S. seeing a 4.4% rise and Canada a 5.0% uptick.
In constant currency terms, which exclude the effects of foreign exchange fluctuations, the company's net sales increased by approximately 4.5% in the fourth quarter and by 6.0% throughout the fiscal year.
CEO Mark Walsh expressed satisfaction with the company's sales trajectory and the opening of five new stores in the fourth quarter, three in the U.S. and two in Canada. Walsh remains confident in achieving the company's target of opening 22 new stores in 2024. He also reaffirmed the company's comfort with its Adjusted EBITDA outlook for fiscal 2023, which is expected to be around $320M.
The announcement comes ahead of the company's participation in the ICR Conference scheduled for January 8-10, 2024, where the management team will engage with investors and host a presentation.
Savers Value Village operates as the largest for-profit thrift store chain in the U.S. and Canada, focusing on value-priced pre-owned clothing, accessories, and household goods. The company's mission is to promote reuse and normalize secondhand shopping.
This news is based on a press release statement from Savers Value Village, Inc. and includes forward-looking statements that are subject to risks and uncertainties. These projections and statements are not guarantees of future performance, and actual results could differ materially.
InvestingPro Insights
In light of Savers Value Village's recent sales report, a deeper dive into the financial health and prospects of the company can be beneficial. According to InvestingPro, the thrift store chain exhibits a promising outlook. One of the InvestingPro Tips points out that analysts anticipate sales growth in the current year, aligning with the company's own reported sales increase. Additionally, Savers Value Village is said to have impressive gross profit margins, a metric that underscores the company's ability to manage its cost of goods and maximize profit from sales.
From a financial data standpoint, the company's strong performance is also reflected in the recent real-time metrics. The gross profit margin for the last twelve months as of Q3 2023 stood at a robust 92.39%, while the operating income margin was at a healthy 47.61%. These figures suggest that Savers Value Village is not only increasing its sales but is doing so efficiently, with a solid grip on its operational costs.
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