SVV - Earnings call 2 2023 | Savers Value Village, Inc.

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Operator

Good afternoon, and welcome to Savers Value Village conference call to discuss financial results for the second quarter ending July 1, 2023. [Operator Instructions] Please note that this call is being recorded, and a replay of this call and related materials will be available in 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 or historical performance. Please review the disclosure and forward-looking statements included in the company's earnings release and filings with the SEC for a discussion on these risks and uncertainties. statements call. only that date of advised this of be are as current the Please the may obligation while regulation. future, unless And company by it in these required is the statements under law no applicable to so choose do or to update company non-GAAP measures. discuss certain also may The financial the filings. be reconciliation today's found A to earnings each GAAP comparable release these of direct of SEC in financial measures and non-GAAP most measure can

Chief sir. Chief from Officer; management Walsh, call today's Tanious, Officer; and and Financial Joining Stasz, President are Mark Jubran Executive you Jay Walsh, may on COO. Mr. go ahead,

Mark Walsh

Thank our year be the Savers Later, Jay December a here second as of fiscal joining provide tremendous and you to share Value public Village. our our outlook initial to the for of story the our us first earnings for details full quarter ahead XXXX. discuss today excited will results talk on company. and I'm ending about call opportunity XX,

our currency, increased revenue million sales. of grew to very $XX bottom foreign margin currency line negative results, we quarter. saw adjusted lines. comps, a strong. million to and with increased sales strong importantly, Comparable and pleased on profitability bottom store with EBITDA very EBITDA X% and Despite demand led new increase throughout more X.X%, we openings, steady second from store than and combined basis, to X% from our are which in expectations impact a both top remained quarter The constant We sales the on the nearly exceeded a consistent and our adjusted a XX.X% $X.X

base. numbers, thrifting strong our The of growing, this community the reuse and customer we economy fueling to continue Stepping number driving the see business. volumes diverse is positive are and increasing and donation trends back a from

in shareholders. extreme returns that process customers and are yield to drive We productivity value strong to to and generate our sales technology people, our investing levels and

Village Value for-profit company familiar, you be thrift and of may who is For in the the less Savers those Canada. U.S. largest

where offering still to mean items Well, shelves, In to secondhand our do and waste of life planet is $X. a of people, mission household we for future we left. fact less nature. than That's despite inspire goods and profit. every and landfill. second an go and thrown a clothing of incredible of a line: treasure average usable and planet. we racks that? are is that Our hunt experience day, on millions used shopping from the pounds it consumers all What champion That away do our nonprofits, landfills while reducing changes And reuse billions these clothes per By onto this customers goods to a partnering natural resources. household say focused away conserving and and triple cases, But item is our most years have cost bottom at Savers pounds value they Savers, we proposition why are we of the redirect like of and with trajectory. and by

we and years, fragmented we and Xx is has responsible historically that our all our starts next scale industry competitor. using supported It differentiate XX which nearly for-profit model, communities are with further We're for socially a by stores and hyperlocal, lacked in than thrift for-profit to operating ourselves serve. larger been innovation. We've the business size the

and data complex to driving thrift and thrift X strong wholesale. model and integrate of vertically revolutionizing productivity and gains technology, retail the highly supply on parts operations: analytics the Through focus data across are we technology Our enterprise innovative combines a our operations. processing,

drive initiatives performance are our a helping number introduced key that have we competitive years, few last strengthen the and Over of advantages.

checkout at This in implemented kiosks has layout overall to signage. to the and a improve experience. and enhancing and have us continue store resources through wait all shopping stores we self-checkout virtually enabled service, customer merchandising times First, redeploy eliminated

These are GreenDrop make expanded our Next, for of donation supply with mobile have drop members are optimized and locations use donations, staffed placed team base. in areas our They offs high-quality to we easy. strengthening locations. quick that convenient, are high-traffic

on side, have Book and Finally, begun Automated Centers. Centralized Processing rolling technology out the units automation and [ Processing ] we

automated Our conveyors, simplify price to and uses distribution Automated up optic each the best technologies price determine and integrated Book for to system recognition, book. set we speed Processing robotic system of high-speed The sort is an books. and tagging how an system

these and Centers the the of units Our are pricing Processing facilities mechanize Both off-site, our improved while the of Centralized and supply Processing advantages. and Automated time, in that investments learn items across over drive our Processing Central deepening goods Centers test price. our flow semi-automated efficiencies the and we should as competitive future Book

popularity mentioned I by in and also of exceptional of is in growth and This, the like economy, operating the rise TAM increasing As secular trends earlier, initiatives growing secondhand goods are our thrifting. powered providing growth our opportunities. strong turn, the the reuse

comparable with Our resilient of ] proven growth year XXXX. very be all has years XX model ] sales [ the positive COVID store [ last in to over but the

profitability, made resulted have focused on operational and that we improvements over years of a the few have in significant number in productivity growth. are increases We last and now

are infrastructure brands access a the our entering established in new our store openings, customers company leveraging new profitable presence acquiring and size and to growth quality continuing enhance densifying with competitive our to and we where loyal markets for strengthen and supply, are driven strong, at to drive phase accelerated positioning We by scale. our growth

annually supported plan single-digit years by the in XX XX new this to the percentage North long-term growth XX America. continuing stores the infrastructure year, target a store towards more new of stores and accelerated is to in with and year thereafter. built are or next an ramping growth TAM unit are the high growing growth we and unit That We penetrate augment potential of

unique. bottom and grows people a benefits makes believe Value truly we planet. to the and Savers is our As and in purpose-driven that line, and profit, are what that something People, bottom a that inspiring, Village is see, and We company. you line hopefully its planet triple big unique are company beginning

and I want entire We do both without how closing, Their to economy is not where stores teams day. Together, at do passion would of success. are our and our difference. making proud for a I am commitment to In do our our at be amazing and the team each mission heart we it. centers. today reuse in our and all every and we what of we we they the are support thank

Jay? turn Jay to will I over financial to said, that With it results. discuss our

Jay Stasz

be for to a on today quarterly first the note nonrecurring and IPO to items IPO. speaking everyone company. include we that Please July third Thanks, in our earnings as our related on transaction call our certain will Mark. to closed this quarter accounting not quarter, It's our a second results be X, public pleasure do since

Mark increase increase As top our The X.X%. second of a comparable perspective. months demand Xnd stores across bottom million. Net were our all sales and increased the slightly a with line constant in our by increased acquired $XXX.X X driven indicated, from to came strong X.X% both in below slightly optimization X% of fairly quarter openings, net board partially stores X closure sales the the of June the basis, April and the was store of and strong in was the and yield offset plan consistent store May, average. XXXX. Canadian and drive Avenue by sales the above results expectations ahead currency across new quarter comp at sales to The average On

Looking at our by country. sales

the in Our X.X% store U.S. by increased to in driven retail sales net million. sales growth U.S. increased Comparable X.X% $XXX.X transactions.

of net X.X%, Comparable sales transaction also retail increased XXX impact volume. driven over sales the past Canada increased opened new net X the stores quarter new a to and in Canada includes $XXX.X months, unfavorable million, the by Our growth second an foreign of We in one X.X% second XX ending stores. currency. store quarter store with which in total

and new with line expectations. right our Our well performing are in stores

Xnd by X.X% merchandise of first integration labor the onetime X.X% costs growth and of Salaries, count, in increased amortization, increase and to growth, exclusive of our material the depreciation investments initiatives ramp was to States of in associated from related scaling driven the higher the strong offset and $XXX.X support CPC expense and rates wages the increased million. wage sold, Cost $XX.X benefits partially million with self-checkout primarily The wages, Avenue. increased and of our kiosks. by and our of our increased United business to costs benefit transaction to store

As a to points XX.X%. expense salaries, of percentage wages declined benefits XX and basis net sales,

charge X% $X.X SG&A for $XX.X expense a Last included declined fixed a year's assets. SG&A million. million onetime adjustment of to

of X.X% due in issuance loan points Processing related Centralized relates currency Centers; notes new million each business $XX.X to strategic This the as of CapEx. in of on the term to percentage based capitalized by million sales Excluding our gain increased held February Interest initiatives, quarter Depreciation Canadian had We this charge, to SG&A kiosk, and foreign that gets our quarter. and $XXX increased our currency million a $X.X secured 'XX. decreased to well primarily basis XX.X%. as Book Automated maintenance as amortization due expense self-checkout expenses XX to stores; to including Processing a revalued on million the X to changes foreign senior net on second rates. our $XX.X

diluted EBITDA or or include and $X.XX increased $X.XX quarter share quarter increased did compared EBITDA shares. equity diluted was points awards net per XXX.X share common second ago. XX.X% for margin IPO-related or or XX $XX.X weighted and a million $XX.X increased million Adjusted per income Net were X.X% share. Diluted to per outstanding IPO-related income average XX.X%. the million to million our to year diluted $XX.X adjusted in the to $X.XX shares basis $XX.X Adjusted million, not

Australian currency As year-over-year. million reminder, headwind this includes U.S. of EBITDA the currency $X.X foreign Canadian, the due and changes a a in to rates

of million to the of ended quarter billion. borrowings and Turning We sheet. total balance $X.X with cash $XXX.X the

year, completed of a payments, million, million, leverage in share. the which on based and initial adjusted shares net repaid We X, outstanding principal the the strong under notes. redeem under price total our secured debt the the were loan our a million X.Xx. $XXX.X second of our loss XX-month $XX.X sheet, quarter After quarter. public on of borrowings half the million the $XX as million we the borrowings the conversion. making and our first interest will we notes of EBITDA $XX third used as and well existing be in transactions loan facility per on from trailing end XX.X These of accrued resulted the approximately and on flow $XXX.X operating cash balance For company senior of million cash July proceeds demonstrating to Net to After $XX of proceeds, million. were at offering the a continued plus of cash and extinguishment activities, our recorded premium $XXX term was generated term of

out the Let our 'XX. for December conclude ending laying of full year XX me outlook by initial

to X%, million growth of approximately XXX and open income net new expect: of the between and We stores, $XX million, $XXX store approximately approximately $XXX capital with comparable $X.XX sales million, income XX of adjusted a million. billion, sales total million net total stores EBITDA $XX adjusted of year $XXX end of and of expenditures approximately net approximately

few modeling out to full keep when in items year. quarters mind additional A and

wages included we With $XX be expense net This from comp comp in quarter million approximately income. on third will benefit in the fourth the excluded be to that adjusted and expect stock and in stock the of X, the IPO-related the million EBITDA nonrecurring is IPO which salaries, adjusted plan July on $XX P&L. closing will and quarter, incur

$XX of income net XX%. guidance of year full rate million effective assumes tax Our an

will term to stock around IPO as foreign public next GAAP bonuses Our IRS it loan rate quite the comp result our relates application gains or as the of the as Canada. quarters XXX(m) move Section company bit dividend-related as QX and with held tax several the currency paid in effective in over associated a well of a as a our losses

of a and our year tax guidance of full had income million exchange statutory rate million diluted Our outstanding, million. $X.XX Post-IPO, approximately a dollar. rate we of share for net $XX was approximately the Canadian count foreign shares XX% adjusted XXX assumes XXX.X and

like now would call We questions. for Operator? remarks. prepared our the concludes open to That

Operator

first the Your from Boss Instructions] Matthew comes [Operator JPMorgan. question line of from

Matthew Boss

July? comp just you you've in progressed? And Or you could behavior trends saw in the or initiatives elaborate on trends could on second these speak momentum as larger that customer customers? picture, elaborate Mark, any you change that or new in quarter new acquisition place customer retain then to seen and So

Mark Walsh

down are transaction still have been trend the trends to were grown really volume high pace, were July. we're digits. -- and -- transaction side really X.X%. have were store up nonmember July, has to that to database changed really the up and remained on That's -- Both the remains and second we second at single consistent, Matt. Transactions hasn't growth good quarter, The particularly trends from solid grow member The on. are on probably principal around trans -- solid. focused our database member into excited pretty teams into loyalty level one the Baskets July. second an individuals. the quarter, signing the a been through new both front-end quarter through supervisors continuing into and Certainly, quarter of the much focused things up transactions -- X%. strong comps, That continue Donation drive enterprise steady. have In

of we're So forward. sign-ups the loyalty progress happy moving continued very with

other mention in internal really of over-indexing is like continue customer see, I one encouraging own is think new survey equally exciting. influx very in long of I loyalty boutique our to Canada to obviously were sign-ups, That's the which the is our metrics, for younger would an customers. things stores term. interesting What's us we in through these that

right? I answers much think question, pretty that your all

Matthew Boss

you sales that's best year the Jay, you Yes, grow gross through second of to decline? back And Absolutely. to yield? maybe follow-up, help of just great think drivers margin And as down margin break gross how color. then quarter the half the a then about as the continue could

Jay Stasz

sure. Matt, for Yes,

did We comes little bit quarter our have X they're operating of match materials the conscious a standpoint, decision components, is our really that expenses. and quarter. during a did the That we sold which a to quarter, Avenue. the trend to And cost investments. the sales second we ] about CPC saw evenly was within in And Xnd to was a second really the labor then June. the integration as right, processing, designed [ the quarter. with and we breaking that have offset got to, from ramp of solid couple increase June books Hyattsville to of onetime related related comp demand on close our a headwind we and we higher the made for more we of out, during One then pointed down items than continued of on in that you the headwind As leverage merchandise down made split the

Mark Walsh

me add one though. let Matt, thing, And

trade On the retail I the yield we up. sales driving side, less yield yield with sales and ], that sales little X%, out sales, love up pointed love as higher having the fact -- a we of processing [

we store pleased outcome perspective. love a So very from we're productivity and trade, the with that

Operator

line Your Konik Randy next question of comes from the Jefferies. from

Randal Konik

maybe store. has a of a of Hempstead. at personal in Whitman I'm perspective demographic from a want Long then on the strategy certain Island, It more higher unlocked on Mark, around a at quality And goods demographics, you, Walt GreenDrop versus I set us just think, that with, of you to that I some a has different have where of addition. the would you unlock more location start And location. West from maybe GreenDrop a GreenDrop quality which that that mall have has gives store -- little the side give quantity and bit products how things example,

kind give factor just of that in GreenDrop maybe what done So goods on unlock us you're locations the some quality getting? the have perspective to that

Mark Walsh

will quick give Randy, and a team Yes, contextual one. start. Jubran think in that tag I I I'll

drive then our we've where for are we of dynamic goes stand GreenDrop back things X we with headed yield facilities. helping really at got and yield and of lot. it where And improvement way on obviously, Jubran continue channel has happening. rollout I the Those effective that's and the stock particular talked then the is improving, strategy; think GreenDrop, a supply, to that element execution and a about of are quality in there as that of especially most of think we're supply through ability back respect more part lot us utilize that about information X%, strategy. supercharged the GreenDrop yield There's to and the pieces a think I possible. to X yield. the us to the metric parcel the

Jubran Tanious

Yes. Thanks, Randy. Mark. Hi,

this. a to talked We've So the yes, donation past. just in we're and the quick group, clean, pretty are convenience excited mean this reminder GreenDrops about the mobile bring staffed I really, about for the they maintained location. is paramount. They're Convenience donor. a well

terms GreenDrop already So the they their donor meet routine. of allows where in to weekly daily, are us

incremental they the rent. donors donate, bins. way unmanned help because them traffic like and a drive stand-alone, they're because to accompany landlords Municipalities problems convenient avoid and sometimes for like they So them that

But sales selection and exactly question, to your high-quality know that helps drive yield. supply we Randy,

things powerful into And together us so matching is those pretty a X combination for the future.

to this is target XX our year locations. So GreenDrop open

in Island. currently place high-traffic, in of XX of You mentioned opening to looking pipeline a And and XX build our line lots markets of our town. continue locations, We in areas have couple these we're towards affluent we to sight to Long target. to

all just into So excited in, not the this up but all prospects and the about future. very year,

Randal Konik

your think more United in -- than a kind United correct the Village in moves in because consumer? another United the volumes get as to yet fair the has, Savers awareness Kind are I'm thrift thinking concept be and States And of becomes volumes of to United of the States I banner that for and awareness have well thrifting I of great. a yet. U.S. Value ] -- concept the volume more the U.S. the here higher units more in in between the a that clear kind obviously much the yet opportunity give Wouldn't you're economy lot is amount the of varying aware awareness that's more I I of the the think thoughts into stores unit U.S. move or doesn't States, kind unit, that becomes of Canada, higher market of productivity the think, of a through. it that pervasive country through of Savers States Canada want it's you think is concept into us when concept that per [ doing or of but dynamic of the think of Yes, to area about continuing also higher the an in concept the markedly your on with per

Mark Walsh

Randy, think, We I terms Look, obviously, in -- where we of we brand Canada, are there's lot percent. love unpack there. awareness a standing at XX-plus to in love we where

So on in bull's certainly which drive last our remarkably you got had continue eye and really Canadian the about monetize to store successful good a Canada. ability some in presence. to openings X We've our were growth months,

we're a great hyperlocal store. through our through influencers, from U.S., to through strength the even said, pattern presence, awareness of because great within on represent. signage, excited demand These Generating thrift what and of that. estate, through in radius more stores, supply our that X- That and the we're markets. the cracking XX-mile the hyperlocal We each great real get we of growth are code

well. are the They're stores in new on very Our quite happy forma. the performing performance. with pro U.S. We're

will years. XX over And next feel replicatable think the way be that that delivering [ so we're like ] in against we I a X, initiative

our to And stores up ability so about in U.S. open bullish really we're effectively. the and opportunities our

Operator

question comes from Roach the Goldman from next of line Sachs. Your Brooke

Brooke Roach

as particularly bit could this been growth was about momentum in a back and as that deeper these strong talk some sales you little dive the strategic bit driving sustainability and of are enter XXXX? we tougher Can comp hoping early your on the that outlook into that quarter. you delivering, that more half the into yield you compares the you've initiatives I of a

Mark Walsh

productivity to team, let's in sales cash And thanks of our -- start product -- growth, think Look, across we the are every future operations this possible maximize contextually, -- our improving on element our for and run they and Jubran, Well, question. focused model. increasing start, flow of I we by let's we're every doing the business business Brooke pound for process.

sales, managers those both Our expenses. of store focus on of contribution, house and four-wall inclusive front back

it fruits terms We I not And great X we've as think that -- of out had you're will quarter improvement, of and but go play great efforts seeing we forward. a the we're a over years, I think you're we're right. that the continue in sales very had last yield articulated to -- done.

Jubran Tanious

Brooke. talk right, -- And we say Yes, about that demand. match lot levels I a think sure processing that making to would that's I we

So transaction keep feed comp is a a store and will accordingly we trend that see then enjoying that nice flywheel if [ growth, ] going. to we will of our particular it operators strong see the

well are sales factors processing we've to and So play. you with level, managing of price. But processing that talked robust We about it matching enjoy continue use got to other start beyond about, and levels We demand yield. space. to that of there as into talk talk to about use come really

dashboards those that data-driven through very level. All things of our have at the store operators are

an migrate by foot time do, give to performance that moment opposed in our the we which from salient are foot and might linear what buying very example. you as fall, sort tell you a of floor into fall so of by in as to dashboards traditional about in retailer and timely and is each think what that a And season the that flip them through example customers square summer was stores sales what exactly our so have can to stores transitioning you as particular match whole a

data-driven way. of they're to customer terms exactly that space, in in at then So we where price, levels. processing we try to match And continue a do the

yields we forward. sales as and We to go robust strong expect be

Brooke Roach

pipeline. you store an if pace you signings could hoping follow-up. of you store give rollout? update us accelerating I Could could your give ask opening on on your was And just one that I in Great. confidence elaborate lease an

Jubran Tanious

Brooke. Absolutely, Yes.

for we So pace year. are this on

stores this year. we that new XX I going to open are think Mark mentioned

with set. opening So dates that grand very about feeling already good

that are good we we for open We set pipeline locations the very to next and year, that. about feel that is have building XX

the be next our pipeline will have increased ground sitting that encouraging landlords but in general, weeks, Here I'll pretty What's that's happening behind interest and of robust. is signed that share, and in we in and and anecdotal terms and that the in few developers. XXth by real conversations having awareness to a shift there real teams our seems estate the lease, are

So the good very is dialogues building. that landlords We about about We are the again, great team pretty having a doing feel job. year. good And is commercial next feel that national productive momentum exciting. we're some with of those

Operator

Your Michael line from next from the UBS. question comes of Lasser

Michael Lasser

trends pandemic. you've we well Given going as full the your of already clock roll what through as to a geometric slow done year X-year X% way prior back the if this so increase a that for basis [ far back both a on comp to ] X-year would year, the imply all were you the guidance basis doing are what

be So that why case? the would

Jay Stasz

Jay. in is -- have kept back thoughts our right we've what we stuck we our we the to that comp. this gave previously. mid-single-digit around guidance low- always And in have this modeling half, and the Michael, guidance And the we business look, with consistent the plan

it previously. was expectations prudent our positioned half think as we the look, X.X% back Obviously, and right the for half in to we had And we maintain thought guidance we do quarter on QX, but kept have well we're comp nice a a around back we that. both had basis consolidated So QX a to in QX.

Michael Lasser

X.X% [ my on like measures, that factors right little forward? that containment algorithm be the factors, of Or points quarter levered by consider a about follow-up, is mentioned made you Jay, the should some increase basis the this quarter. there the some that mentioned of then the And you higher may other that comp self-checkout, for of forward? model operating that look unique repeatable we expenses leverage unique the moving Is that moving not was cost XX had expense the ] in deployment outside

Jay Stasz

efficiency, very we I expense we strong did mentioned then above quarter, the when inflation, 'XX in initiative, as compared we leverage. level, that's have next our to was mean will as high continue self-checkout think a corporate the you well which comp in to as occupancy, if quarter controls leverage expectations, No, on the that SG&A. nice did I good year combination comps. as see We can scale driven our of in as and anniversary by well right, nice early get leverage our

Operator

next [Operator from Baird. of Instructions] Your the question comes from line Mark Altschwager

Mark Altschwager

sooner to guess how landlords comment that following does you on moment ago I with Jubran, pace a out, faster up enable or have there capacity Curious openings and of kind start are pace just opening store accelerating of organization maybe a the potentially maybe of standpoint. would than you otherwise conversations planned? the your the overall made changing, thoughts of from the about a

Jubran Tanious

and that I finding certainly interest the Yes. Mark, helps, just But seeing. of would that group mean, real estate is general awareness but Listen, attractive we're it's I equation. the piece the it good question. a right, one remind

that's talking to about Listen, out want We also we finding make necessary a there. there's about supply check that talked time sure as We high addition good supply of in plenty GreenDrop, box we ingredient. think about to certainly a But volume on-site spent good quality, parcel. donations. that

a there's things few So play. at

I feel be If very we we we faster, think we as certainly we've want to thoughtful talked we as an commitments the go the that good about to stores about but will, the ability open. team, about have we executive have.

at. where good it's certainly, But we we're development. a about feel pretty So yes, good

Mark Altschwager

particular any labor some a in And costs? I then any you categories follow-up, to just Can And basket trends you think higher said the the AUR UPT? in opportunity great. of down versus you see That's price quarter. take X% just in comment to on offset any

Mark Walsh

Mark Look, is Mark. this Yes. --

consumer some we've they're down. think been conversations. at that being the end We're that the and So as that's units being that look, And up There is in the shifting basket where previous of is you seeing has price basket I into described trade-off. number what taken, putting basket.

consistently. price-unit there's trade-off happening So pretty a definitely

They're nature. done about, As price ]. strategic a [ geographies, all category we've across and also on basis increases on based sell-through by category talked very in it's are

that continue very our will against employ to we deliberate moving forward. execute So strategy increases to price

Operator

from Your comes next CIBC. line Petrie question from of the Mark

Mark Petrie

just up in I on both to say is around U.S. the in you developers, wanted landlords have to already about you're of this comment specific up the catching that and talking you've to from Or underway experience a and you're couple is markets? the follow perception to in fair Actually, already the Canada? the discussed. essentially topics Jubran,

Jubran Tanious

countries a U.S. question. to in Yes. Good I say Yes. larger Hey, Mark. degree both but would phenomenon in the is the

Mark well-known we the awareness continues such that Mark, still But yes, in really have lion's mentioned great And opportunity Canada. in I presence quantity mentioned States. there yet, earlier, in us of United Canada is a the share what unaided be brand As there. strong very earlier, a to for we're and

Mark Petrie

Yes.

strength you format stores. small highlighted And Perfect. Okay. the the the and benefit of

that have you those think What plans format? X of locations are open. expanding I for the

Mark Walsh

the boutique we performance side, on very pleased So have today. been with our

mentioned, that in the we're the coming think again, Toronto one I of deliver the equation things setting. into is X have We loyalty and we really the experience X that That's piece urban excited over-indexing I Vancouver. customer of of And more that in and as store about into for part Savers program. of as Savers to a the -- up signing exciting a very be us youthful

to boutique as prosecute continue will they become opportunities We available.

would the this I say at a it's moment. thing Canadian-only strategy only about the opportunity, boutique think I

Mark Petrie

on I to Mark, price, know that. and just you tools the know you be how the year today ago. there. more? wanted I sort picture I of responsive can were one context X around you're looking of kind on if where at And I'm just ask just comments versus don't some or follow I have you to provide kind Can Yes. opportunity up, big curious that of ago months maybe a pretty

Mark Walsh

Sure.

I category at I very geographies. month-to-month price way look on we're it below we we think in to across by continue looking $X. at a really it pleased We're basis, value The are consistent we deliver strategic in really the very does our approach manner. team a mean that increases. category

our for driving price, some still the in consumer, of it's in though value think I U.S. really in powerful both and Canada. have terms we even we're taken exceptional

in AURs But So are strategic we're again, we're changes. those digits. approaching mid-single low way to the the very up

Operator

Your Securities. comes Guggenheim Bob of line next from from the question Drbul

Robert Drbul

for questions me. Two

going The the of update leveraged your is expectation the us, where going the sort with an you're completion just think about of you one can IPO, forward on end for you at to first leverage on how the end maybe and of up Jay, of just give the question the your that just level. and any terms with some over you've us higher months your picture, balance few you give partnerships just relationships of bigger sheet? insight sort last partners? can But feedback nonprofit the from the And gotten is then in second year

Jay Stasz

Sure. start question. Bob, leverage I'll with the

some talked that of we we've this it to this leverage about before, about post As business net just cash, slightly right I X.Xx. now continue the the to that down mean, that is would as about under remarks, debt. that. we or paid Xx business of around IPO, I will -- beauty be And our generate especially talked was by in prepared forecast year-end then

And our leverage naturally right net think be. to with year. best public said, cash, deploy delever, is X.X we that. Xx a as of that's discussion going build points so as company, our we target like management we be a And and sponsor And we've a the to to Xx a say, about place ways would to

Mark Walsh

important nonprofit of and they're that trajectory. of relationship. you'll bullish hear They're our Sound Puget is about stronger. never want they think of in Jubran I growth And symbiotic to about efforts it relationships, Bob, the growth lunch grow And from what the all been here they've partners a terms had be trying our partner I with our nonprofit part and and in Actually, area. very what we're us, very to is do, with they excited very because

would I the have So never been say stronger. relationships

Operator

this further Mr. like There at back are any I'd over remarks. questions turn call Walsh the for to closing to no now time.

Mark Walsh

again interest Thank when and the you, to third you report to look everyone, your forward Savers quarter. call. again. for We in we on Thanks, speaking participation today's

Operator

thank you, you disconnect ask today. lines. Thank and gentlemen, a... you and for for this participating that Ladies conference concludes sir. We call please Have your your

Savers Value Village (SVV) 10 Aug 232023 Q2 Earnings call transcript