BELLEVUE, Wash. - Savers Value Village, Inc. (NYSE: SVV) reported fourth-quarter earnings that fell short of Wall Street expectations, sending its shares down by 5.09%. The thrift store chain posted adjusted earnings per share (EPS) of $0.15, which was $0.01 below the analyst consensus of $0.16. However, revenue for the quarter was $382.8 million, topping the consensus estimate of $378.29 million.
The company's net sales saw a 4.4% increase compared to the same quarter last year, indicating a steady growth trajectory. Comparable store sales also showed a positive trend, with a 2.6% rise, while the U.S. and Canada segments grew by 3.1% and 2.0%, respectively.
Despite the revenue beat, the earnings miss was the primary driver behind the stock's decline. CEO Mark Walsh commented on the results, stating, "We finished the year on a strong note and are pleased with the underlying performance and resiliency of our business." He highlighted the company's vertically integrated model, which aligns processing levels with demand trends to generate strong profitability and cash flow.
Looking ahead, Savers Value Village expects to open approximately 22 new stores in fiscal 2024. The company forecasts total net sales to be between $1.57 and $1.59 billion, with comparable store sales growth anticipated to be around 2% to 3%. The projected net income stands at approximately $78 million, with adjusted net income expected to be around $123 million. Adjusted EBITDA is estimated to reach $340 million.
The company's guidance for adjusted net income and adjusted EBITDA suggests confidence in its business model and growth strategy. However, investors reacted negatively to the earnings shortfall, underscoring the market's sensitivity to performance relative to expectations.
Savers Value Village ended the quarter with a total of 326 stores after opening five new locations. The company's balance sheet remains robust, with cash and cash equivalents totaling $180.0 million as of December 30, 2023, up from $112.1 million at the end of the previous year.
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