SVV - Earnings call 3 2023 | Savers Value Village, Inc.

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Operator

Good afternoon, and welcome to Savers Value Village's conference call to discuss financial results for the third quarter ending September 30, 2023. [Operator Instructions] Please note that this call is being recorded and a replay of this call and related 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 or 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, it is under no obligation to do so unless required by applicable law or regulation. The company may also discuss certain non-GAAP financial measures. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure that can be found in today's earnings release and SEC filing.

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

Mark Walsh

for more sales for in supply in members currency, by an EBITDA Savers. you over are than on first with and currency higher joining increased of the despite the over store third negative remained adjusted us interest your $XX pleased impact reached and net Open performance. of $X.X quarter X% for transactions, and increase Sabre's our X%. grew We X.X% we and Comparable sales today million. Donations in quarter in Thank last strong goods very quarter, we program, XX-year increased a year. the time had to million XX% third our history, and strong loyalty million a foreign from X

Our margin strong that company. to third and operating our our EBITDA, unique, performance quarter philosophy ability an integrated vertically governs by deliver demonstrates underpinned

In these away me so, and the data one Let around bit thoroughly We XXXX, drive accounts retailers, sale. Labor goal: costs. and don't the by we profit the turnover, nonprofit processed this the we the sold. Unlike partners, to To between costs to the of collected, for is roughly goods and finding are these the every biggest sustainable data for preorder optimal price, maximizing items collect, XX% a productivity source, donated knew and goods, conventional environment mix total partners that operating incur a goods from manufacturer. of donated of analyzing we Savers and and cost we a refocused with component product our grade or for margins the EBITDA. cost explain Instead, paradigm of of pay and improved flow. for merchandise cash nonprofit vendor do middle measures by our items can and we behalf more volume-based we that this organization a products more. advance themselves; strong labor cost started up price on primary made is from item we moved months in components: accept our of

been than maximize by items a driver point $X.XX side in on reflection important from $X.XX dollars which metric or our $X.XX both are retail we put productivity quarter driven the product our XXXX. are sales yield supply seeing unique we was made Donations our every strong that we accept improvement processing is balance the help business. of number structural business. It have third has more the by cash XXXX retail volumes to up we basis process, yield and in in strong X,XXX third and the on of of every of quarter. period called also the decelerate of year calculated simply, a on This for store thrift is were things: third comparable keeps to higher Sales to the quarter. day, dividing the sales from in very basis. Sales growth processed and a trends directional better productivity, at of to inventory matches accelerate first, and donated our based a improvement ability it margin results second, in XXX our gross in we levels any is currency productivity, a given While An neutral flow. The in the the was which it pound pounds generating gains and does margin This last X yield. by sales, with to the being demand; changes it To retail. trends expenses XXXX. point EBITDA and EBITDA from sales is basis demand

period, On the for strong and Demand for throughout we the different hard in moderated in and soft the quarter. X saw goods the of quarter bit first the consistent goods remains demand demand side strong the September. a while in half of equation, trends was

result, clearly, goods in of an processing and first important quarter of consumer we part volumes under latter soft value dynamic in half unit is a With and our up As our the EBITDA. an revenue deliver landscape. of stepped $X, expenses retail our down in quarter value $XX in is the align proposition to average strong, the the the million to adjusted

as to is discretionary everyday align consumers everyone spending, post as high food and essential are closely expenses and inflation profitability. both as very the and such However, aware, on very housing. sales monitoring is with we now items maintain remains right With their uncertain environment macro demand managing

Turning a with open to to in our expectations, opened stores this new and of new we total are In X line quarter third year. the on track stores. XX

We target XXXX. new in continue to XX stores

X take to XXXX X in is U.S. to amount tremendous of and in reach There years volume in generally new of demand. The processing X donation reminder, classes Canada a store of XXXX a in us. are new performing to expectations. As X with stores years efficiency, mature white retail and the space front our and line

addressing are that methodically. We opportunity

accelerating going quarter overtones our in We we and feel quantity bullish third quality continue of the execute ability donations the results continued results. to store forward. build conclusion, business early to organizational our our and to cadence, the provide our success. In our about good muscle and

We profitable is through why customers members at serve significant thank dedicated business and drive that EBITDA confident our know other in expenses measures allow We our to labor so we is who that have maximize hard-working changes and different scale. I the are growth structural to business ability the team inventory, this demand processing to every very and want our most day. it levels, execute retailers, made us align focusing from productivity to with trends. our

financial to that, and the will Our planet over mission is and thereby grow results. make our turn economy Jay? profit. With to I the call nature, benefiting discuss to reuse second people, secondhand Jay

Jay Stasz

Mark. Thanks,

results. remind on let was for me IPO our accounting closed begin, quarter third in transaction I X that you the July our and related Before recorded the

compensation not X%. a recorded line of expense well expense quarter tax tax million stock the that let IPO said, salaries, our the X.X% and this as as to sales net the nonrecurring $XX.X our and increased obviously currency Net the rate to increased comp in of was deductible. With sales stock Specifically, On impacted basis, we The income numbers. me quarter effective benefits $XXX.X statement. review million. wages third constant related

new by Our sales driven openings. a comparable growth sales was in X.X% increase store of store

softer in September. we quarter, trends in demand saw July with the strongest the During somewhat and August, sales

goods processing transition fall believe that remained and summer the goods Canada accordingly. from of in hard the September, consistent soft the moderated to our and in our we normal strong above and we Sales levels sales, we impacted quarter. goods temperatures As U.S. throughout

quarter to new opened comparable Canada store included at country. the growth with and increased quarter by $XXX.X XX months the X.X% net currency. of third and new of sales volume. We sales ending Looking driven X.X% unfavorable total past an store increased a foreign increased third X.X%, $XXX.X sales sales comparable transactions. over XXX million retail U.S. increased stores. X million, the by net X.X%, growth in sales stores to impact XX which driven by our Canada in in stores also retail transaction

as and million performance, is increase and costs from growth underwriting an benefits XX.X%. Higher our lower sales IPO-related was percentage sold compensation expenses. last store material in freight in the primarily to new in year due store $XX.X comparable at and our wage stock Labor higher expectations to transactions with the with costs of $XXX.X wages million and our expense. increased pleased stores. Salaries, to increased labor rates, number offset which of by primarily in line expense merchandise model. Cost of a flat are were We

on benefits capitalized in stores, well centers, million, and Excluding million initiatives, a and processes centralized due this increased related Depreciation expense due or of declined as percentage ago. Adjusted million $X.XX kiosks due is XX by benefits adjusted amortization per Adjusted of XX.X%. to $X.X increased self-checkout $XX million, of a currency were increased CapEx. Interest $XX.X book of $X.XX EBITDA primarily loss wages processing maintenance debt. to points to quarter or $XX.X self-checkout The primarily margin to higher increased offset to net per in XX.X%. compared automated our XX.X% adjusted loss our than and to for X.X% well net EBITDA by headwind Included and controlled. per rates. basis sales third in interest million was EBITDA rates year million to sales income year-over-year to share. and changes strategic diluted as continued flat $X.XX new including expense, as for the be more our to as a diluted and currency basis million foreign expenses was to to $XX.X share salaries, million the $XX.X Increases or overall share a net percentage wages income kiosks. SG&A a $XX.X was XX the points quarter of of was diluted net $XX.X

ended in quarter million with balance the the to sheet. $XXX.X We Turning cash.

year, million end repay loan facility shares For with as well adjusted was based million extinguishment initial $XX trailing and cash we July were the accrued in premium a our company activities. proceeds and from on months million price share $XX XX.X term X at a resulted the of public $XXX.X on per generated to of total of $XX.X interest the on the loss its term outstanding under used quarter. At million the $XXX.X borrowings notes the to in notes. from as a first borrowings of of third XX-month EBITDA X.Xx. net the operating cash redeem net We loan debt transactions million IPO the These under X. Together our of offering quarter, $XXX.X and completed hand, in our on million, the leverage the of of of

processing about Lastly, thinking and of the outlook for let a remainder about our are how few comments recent demand year. the make financial and me we trends

business our is Mark most than very indicated, As retailers. different

We and us in through for related. align in winter we back sales to our profitability. We to labor soft based demand lowered goods the and weather half expenses fall that are fluctuations form goods quarter third processing processing to maintain constantly partners stores some better production for by levels were September expenses in our on believe our are the to This to able manage of donations of and adjusting and the the allows trends. charity receiving inventory

in While between where been from markets. varied we have seen modest the the pickup normalized, pickup weather has lows September demand and a has

uncertainties believe in continued and our in the the to approach manage closely prudent quarter. take fourth profitability processing measured macro and pressures maintain environment, we levels With to the inflationary broader is a it

the sales an incremental fourth that in had past months currency note also to dollar the Canadian the in headwind X EBITDA We decreases the over rate and quarter.

sales store a flat to fourth comparable a result, EBITDA adjusted quarter range quarter to we guiding approximately As and are our $XX our fourth to plus X% of million.

Our and updated exchange fourth million Canadian $X our negatively sales lower by estimates X.XXX, guidance rate EBITDA adjusted assumes of approximately dollar $X a and respectively. million, which impacts quarter

impact earnings adjusted in expected 'XX year from to fourth $XX again, the comp inclusive unchanged comp the stock approximately and out $X.XX billion guidance of year to is FX and the For and year. the projected IPO-related year experienced be 'XX, revised quarter the of now full $XXX Other we billion, still we expense are This of impact wages which EBITDA from negative items guidance the incur which are modeling In in the in income. additional revised and salaries, full P&L. the when fourth rates. Full be our sales exchange adjusted in few that the of to the and FX million, FX the 'XX from million, impacts. line for third will to expect as quarters benefits adjusted the that will compared release. A approximately previous section guidance net keep excluded be in be full quarter, a contained quarter is nonrecurring $X.XX on previous mind once stock to included figures includes approximately EBITDA lower outlook

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

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

shares. That foreign count call for concludes adjusted of year open estimating shares our share exchange Post full like million statutory assumes XXX of for we dollar. tax the would outstanding, a are income full now diluted rate $X.XXX We and approximately the questions. of and net IPO, a Our a approximately guidance Canadian XX% prepared to year XXX.X had million we rate remarks.

Operator

question comes Our Instructions] from Boss JPMorgan. first Matthew from [Operator

Matthew Boss

Great.

help speak just higher drivers in quarter? cadence the customer just the to you Mark, to quarter any just or maybe the of outlook on trends X% and elaborate just could saw level, as behavior, that progressed? trends maybe underlying And So you anything flat October notable for your third comp maybe fourth or in traffic

Mark Walsh

Yes.

depressed, quarter So throughout have transactions, U.S. consistent sector Canada generating We've had the business for unique enabling into We in Baskets transaction free strong warm do and unusually inorganic started analysis positioning look, just versus goods to will stores, opportunities. cautious flattish that early season the bullish when and the our shoulder maximize continued continue EBITDA, we it's we flow thrift are we're internal that's remain temperatures for I growth the weather the soft with and season love earlier a run September, budget. the countries hard I buying to patterns in look from about Ultimately, I'd we shoulder from goods. We've demand the has that and that value remained with that goods guidance was enterprise-wide -- also across point, U.S. jigsaw. we sticking highly think third got industry. a mentioned. We high that just with year are in And indicator to growth statistical remaining points negative to One cash scale. their invest that like at quarter. to like very as believe shows a some to related. perspective. And the both point of overall really October that slowdown both our for which temperature been vantage also the it's supply reiterate, Canada trends, is power in or We dynamic consumers where growth correlated you model about that at constant the down remain issue UPTs and analysis demand drove traditional

Matthew Boss

point, be Great. is to And think I as opportunities line model, meaning a X% potentially think efficiency top flexibility are elaborate below costs that about can just labor levers and sales? which leverage to then if with and maybe, or Jay, multiyear you that we the processing be on pulled same-store were softer the could backdrop, just X% there sales same-store

Jay Stasz

Yes, and we I Right. so talked the really, that mean, about Matt. biggest our obviously lever modulating that is Thanks, levels processing matches demand.

COGS, in So by lot our of our which and EBITDA COGS, sales a keep our capture ties hold. the really And that labor is our that, expense, can component shortfall demand sales. which of we is into and biggest doing

COGS strong have a EBITDA, but the we we QX, it. here goal, below in can sales, that's if look, embedded wild line, get saying very operating then that's is in carry that we're for Now year. could producing comp. I'm swing XXX% and expenses next maintaining capture the had not on on we we done could and lot a of focused even with below we like the And soft our guidance something our our we've because also managing EBITDA things

Operator

comes question next Roach from Goldman Brooke Sachs. from Our

Brooke Roach

more that strategies in price you've in sensitivity some seen be customer was driving I of yield you that business then as would may that that need follow-up, seeing driving and have on for optimization growth that unlock. you could elaborate backdrop? that of customer the any in unlocked a value the in of initiatives today hoping increased the reinvested are And suggest challenging your the macro you're strategic to sales this signs pricing

Mark Walsh

on over the to Jubran first So Thank for Brooke. yield, sales question. you the question. I'll turn I'll it answer

price. have any We None on whatsoever. seen not impact

Jubran Tanious

And to number that we price particular within items Yes, out we think a comes being I at item we sales sell that's I yield, ratio. are say right, of put definition item to again, category. And the of that items for. regard number would when ratio the looking versus it of the with always

customer. So take And selling we regionally, if we very geographically, just the process category that think what with subcategory also is ongoing about and level, will. category but And the the not surgically at that's really we price reacting price do well an you think when about level. we that's to the

that sales think helps So I that, in yield.

ability the would to expanding I nimble being the that's look do the space. sales different space unseasonably sales to the comes to we how season, a top to Well, At transition that transitioned year think actual items, depending manipulate bit shoulder seeing going weather on be Mark and of set, the our about across into talked able weather you each summer normally fall. is as a we're of things little manipulating you space in. weather cold call, and in warm as your shrinking and to that fall one

that protecting they're where And the customer so we walk line the sales can yield. and at, meet all while

So short-sleeve into floor are on our keep the be season, items them little more later selling and bit we'll a better, if nimble.

years into that know -- a sales And that there's yield mentioned and Mark So both goes we lot what I countries. this donation create their bring on our and And goods performance robust care our the donation is in say measuring on-site to the will. the would the the will rest centers you takes in of this stores higher if over versus is earlier, to it. green last when yield a donor time sales supply, and drops in the that generally our very

all think So are those helped sales. drive what I things taken together

Brooke Roach

Are both medium model. the labor there speak you follow-up little optimize efficiency to Can to that in and term look have in the term? labor as that see short costs Jay. you initiatives any for a you maybe bit the then the And ahead a you additional

Jay Stasz

stores was leverage obviously, self-checkout we're year, I We're the efficiencies. efficiencies of initiative nice and from processing Well, an this the our that our well, of expense trying mean, that is continually front and self-checkout. of monitoring level We're efficiencies constantly in to payroll the balance the side paying teams dividends. between as that. the drive find in that we to for completed looking the processing seeing Yes. perfect

sharpening mean saw. I absolutely. we're So constantly that

wages we've some significantly. last to we years still a moderate be think probably couple there's we labor up forward. about to X% and that would year-over-year, while We're obviously, in expect investment from looking pool, in we slightly invested very of labor challenges, wages, As going the expect

Jubran Tanious

I'll Yes. hours labor is number It of labor, tying amount all modulating And that in. about jump process processing, utilized sales goods that Brooke, floor. the of to those on to the put we we

supply to Our vertical ability in the do do very feel able second that really our quarter, the to quarter. of the see drives We that we do moving you efficiency. half forward. it were And over ability bullish chain and last that to about that

Operator

Konik Randy from comes from question Jefferies. next Our

Randal Konik

similar some that on what there? And how I in guess, any trends an you data the the Just can quarter versus understanding if members and the any from -- then behavior versus shoppers trying U.S.? there's you a analytics. differences Mark, of shopper between perspective nonmember get give to your acted in saw differences kind they've question how Canada us in differences on in changed

Mark Walsh

consumer. been Canadian very able the stress, we've the of strength Canadian On our is model think strong the U.S. to over comps. achieve look, period What stressed of a I the piece, like consumer

has we as are shopping But proposition been. market baskets obviously Randy. I deliver to strong approach similar. consumer transactions with sharp mass once difference remains eye their it as any again growth production Again, demand we're the think today a relatively keeping in to powerful productivity, to behavior. see data-driven on don't So massive that drove our the a ever and value employing Canadian

So countries. in very, symbiotic very, reaction consumer both very

thrifters. And the strong broke point On points quarter, the in for growth data million member member on signing our point cohorts. moving that member, the then capture the pleased with to with new member program, continue exciting I'd growth X couple out engine A the towards those members execution an very sign-ups, non-member, I'd loyalty again fuels stickiness that mark, we had loyalty the of ultimately youngest very ability be up royal and sign-ups the to store us. other past that to this database and

move sorry, also trade couple in up incomes of in seeing another the And that of cohort -- folks push signing that signed in of I kind youngest the hundred point household So number down. the of who higher a we're basis terms bit.

our So active overall with we're their of seeing household higher down income share trade increasing the cohorts pie.

Randal Konik

if know but might Great. top think about thinking you guess, high just be I it, level think next about have year, impacts level. we beyond EBITDA as next And then, -- about, line Jay, I FX do quarter I we dollar this, how missed into how should and don't you high across mentioned

Jay Stasz

Yes.

future Canadian the time. rates we're So that forward the the at for at going forecast to -- future We're dollar. $X.XXX curve currently

we guidance, don't ball. use that have But crystal we a perfect around will we to estimate 'XX to when that. get So our curves future existing

Randal Konik

how I thinking then about any in anything or then hedging like you're or no? guess changes that

Jay Stasz

place, No. our effective as we we're wouldn't contracts XX% on debt our Canadian well a but Canada, I hedge future at constantly major have in of those mean we changes. as hedges of and been cross-currency it, swap I in environment. from about looking got mean this cash couple expect even some have flow to a

Operator

comes from question Lasser next Michael Our UBS. from

Michael Lasser

trepidation. business along a sounds a and of in quarter, was weather what combination you've far It while September, it's with on drag in October the the seen so consumer weather this like the drag some

will B, consumer expect for haven't is just for that's of you that your yet? would you trade seen to -- right? if sales A, couple the support see that So you is going next this growth as expect continue down pressure that quarters? it of best that same-store to you'll have persist that, start us a to Or

Mark Walsh

patterns, an in and not of happened. improvement our that we've comp would I trends. I portrayal more the say of seasonal gotten we've that's -- to accurate what's last couple I an would not seen would has as weather moderated weather In weeks, -- the

very overall that have forward. actually moving feel that share we I about mentioned, about active their trade pie higher feel during down increasing bullish And income cohorts of as We again, see continued household our window. that. same in good we to the So

Jay Stasz

And Michael, is Jay. this

Just a good given of into right to right? EBITDA We're structural about profitability to confident we couple no Mark like and we're beauty X. is acceleration, that. can can we've -- of but we've guidance giving seen the drive maintain a to achieve the could 'XX we to business, so trending like that so the we've there So we're growth the comp sure, from talked our at standpoint add experienced that long-term changes QX the be that not of said, this the processing guidance points, targets feel quarter-to-quarter. over But we other mean time. I for X and we've variability time, there's growth. about model, some modulate ability And

Michael Lasser

in productivity to why Can the you the it of tougher, meaning it moderate. just yield us Okay. that calculate is donated as if Number a quality under economy what looks economic that other years few also, product sales could the cycle, like seen there follow-ups. of so we're gets case? able gets give the that And between and new gets may Two in one, not the quick consistent pressure externally? delivered any the is remains of with the you've the product last sense relationship store the quality be

Jubran Tanious

Yes. Michael, Jubran. this is

one. this I think Jay will team I tag and

seeing of economy. tell question a donation can challenged the our in that quality change the the I What donations or in does on you side, is even business. your around we're So volume not

the conveniences donation it the execution. We've has this the In our in robust each we fact, time. to like And a U.S. and every that goes about, need are being have to volume in friendly where came talked comes and about talked lot the both to past destination for Canada and of give of experience they choice on-site when team then been to members trained donation donor, that fast, reliable, that

seeing robust And which us. doing consistently, as choice. sales that know, ensures So for we're helps that again, you on-site destination mentioned pretty well performance, of that earlier, that donation stay drive we doing

Jay Stasz

Yes, Michael, this Jay. is

get new store it's of productivity new with about our challenging performing stores to I are information that XX%. doing a And very to And hard our understand, But with have, you in is expectations line to right, new the the -- as are well. the translates in on and some to Just it. calculation, to store right productivity wholesale closed Savers Second a with there sales we're right, still we're revenue lapping -- model on numbers to model, Avenue, with get yield. well the from with how shifting the our stores focus from in quarter. And because the it noise some more strategically finally, there's then that

So expectations. some in are of new that without right the stores our true backing line with

Operator

Our Mark Petrie next from question comes from CIBC.

Mark Petrie

locations are is of up to I the out? change how there great. stores, follow ramping in that as That's up question wanted just in rolling I but also that's you're terms the Actually, on new last donations. And guess with drops volumes. regards new to product's And any them in green quality

Jubran Tanious

we is Not historical whole, to no, terms pattern on drop have in But we it's we volume. pretty we're really. do whole, what an what Jubran, When of exactly forma, not of On bit our stores. a on expectation accurate really. going -- a like ramp the some that the expected. donation and new little locations some of open seeing Mark, kind expectations. new pro locations, for green anticipated, what And better We we a than and look a lighter.

new terms on locations. any seeing of not that no, in So change

Jay Stasz

depending it X the for years, as reminder, to Mark, on market right, mature. a take just our tail and Yes. X time And a stores to does I the country. long mean it's

line in early maturity long fine, with are time reads a the metrics. line. yes, So our But

Mark Petrie

Understood. Yes.

to here in more just of marketing given Canada, just to reach landscape and from perspective. new is broaden an the to curious consumer, customers? any programs plans immigration significant given specifically to have Okay. Canadians if appeal cautious And you Canada reach a I'm And your in seeing the acceleration

Mark Walsh

was new say about I Canadian best pun economy. The intended I for continuing been in drive of part I'd that fat robust signing will new we're are -- with Canada. really we And we're of retail you feel have how stores in the of in to Canadian fabric, good up landscape mainstream confident market, in just really really into Canadians say week, you the the I no We're the store new there this to feel just that approach. And the of ago, indicator openings. in very we for remains really weeks tell our we're we're out up Canada. our the woven is a And would people on mark. We're number retail Alberta. reaching X pleased

Mark Petrie

Okay. I regards the then if story landscape? the comments. the is any obviously landscape I shifting was M&A ongoing of part strategy. that's all? curious know at I current and to the appreciate update an And just with

Mark Walsh

We of in a in about workforce solid within landscape our shifted. that attractive synergies. remain capture on call around dynamics grow leverage additional and what focused local a stable, the excellence opportunity The talked to has terms we not we and to market, opportunity to geographic last inherit supply, presence brand infill, the the that strong the strong operational

say can I that, time. this beyond So at nothing

Operator

Sander. from Our Peter Piper next Keith question comes from

Peter Keith

to wanted ask I growth. about store

assumption? with thinking incorrect you will And be awareness the some result, that, where prior new challenged up management. seems to might the I guys was guess a under is before openings investors stores. new marketplace trouble be in maybe that have in with someone suggesting current also that as Savers the store that there if opening So And team, XXXX

Jubran Tanious

Peter, I'll can Jubran is the one, that Yes. this guys jump grab in. and

administration. today, things. that different check store You're when on One on know thing doing to the the paradigm new forensics we absolutely right. a a box is, was It about different want we we do think sites, in a under that few

So as some location donation about that we model won't like. good they it open unless not forma but And out. have well you a robust approach terms we're also the store team doing And we as that that on a and we've today. so the the and so I vintages, a on-site the we that space But new in of to what a way and those forth, got out, built pro area, pipeline. very performance we on the in trade the predictive supply. And that that on tell white the foot and momentum supply have the surrounding has not figured traffic, was means can previous supplementary supply figured delivered just that look of for had data-driven going is equation talk

Mark Walsh

add approaches executing high built the to this, we're couldn't different. and I'll think And I a the degree. we've I be more muscle, think Yes,

continued and and the their years. success in So about I'm next over stores these opening new Seibert really David and confident Jubran team

Jubran Tanious

are share able And the that we because we're Peter, pretty only that and is and in I'm other to sites all that America of I -- meet the space, white thing that only on do that we major other North every prospecting would criteria sorry, in Australia. new where open because selective market

choose. So there's to the sitting that us a that pipeline behind big new very allows in the that's we scenes robust stores be judicious

Mark Walsh

this year both track for store our target and year. Yes, next on

Peter Keith

kind has pivot back think to has country, talked of and Okay. warm been weather Well, just Eastern. equal I we're aware warmer the a colder. middle across the been weather start you to and the know certainly, U.S., of Western trend it the I to I about fall. sales all But The and want not

in months any trend did last of as So maybe the the that? result a you X see sales geographic differences in

Mark Walsh

with is cadence is hard goods. strong comp spikes of one statistical constant. settles, extreme talk correlation TYLY, temperature why seen highs our we've high add, that good we're and down. transactions performance volume more respect time performance, trend. when to But -- absolutely demand second we -- of have much like we pattern We at areas to Yes, third quarters. remains differences more push feel haven't volume much And that's The more we weather do the the see consistency as sales seen growth. And in and our that have we'll all temperature the have do looking highs. had negative the to very analysis where Again, we're And the back thing and in weather question. through X cold sorry, correlation better we the warmth, about seen We thing, we -- I'll we shoulder -- hard once When to goods. consistent season, Peter, the weather that go we're because Peter, the trying in up. see we get high running

That's the weather on books. no throughout furniture consistent there's So and quarter. influence and miscellaneous been very

Operator

comes Our next from question Instructions] [Operator Bob Guggenheim. from

Robert Drbul

Just X questions for me.

on is, first of in? an the you is give then of second you grain as of competing in the just And on the one of you're plans of just competitive update one sort you pressures that green and number sort The pipeline sure seeing well. any drops our any the of current make are sort sales on piece can drops the of just us are markets it, new

Mark Walsh

to No, about Thanks answer question. feel from from not I'll the sit merchandising -- perspective, about from proposition positioned, we're our merchandising negative to that for look good where the in we the competitive our we competitive walk We're our and We they is research We influence today well any and set. as great know value a superior Bob. consumer we discussed. standing door. how consumer question, the the very sets. first presentation feel once our

Jubran Tanious

XX then year, will their Drop roughly Green Yes, so will for XX to the we side, sight All Bob. we modeled. of terms line now what well have at doing are performance that locations of this right have approximately early on opened. locations we we And with in

fact I is with opposed are method, about right? right? To to get they an the thing different can you will it And does the such about municipalities all Drops that. One to problems permitting say happy all But those permitted, challenging. very visible, the locations as create. some familiar right? form can the of challenging city the are that be So and make that the show for that bin in it's well-maintained stand-alone attractive clean, Green this, They're different

different occasions looking space to prospecting to to tremendous white there's of have the municipalities. are And future process permitting we that back into we markets. and in and again, through are years where go there work But we for such I years the would lots the are and So grow areas. drop pipeline in collect very future. One into But bear Green our on today to we're thing bullish be is what robust of going small actually Drop, supply percentage mind that to is that represents to relatively Green high-quality a realize we're able that to and affluent that high-traffic Drop ensures green supply.

is locations XX in year or here or would Drop X consider there Green material. we not what So a

opened The well encouraged for come. and the very So have we overall, to the doing opportunity. about excited very still are years ones

Operator

from The from Mark Baird. Altschwager comes question next

Mark Altschwager

the you quarter-to-date? I to regarding does what you of Could representative back just of likely season of Or more I kind is it past first, the shoulder the wanted reacceleration a get guess comp incorporate clarify, follow is and up the of the half guidance. quarter as guide QX just you've weather in factor. experienced

Jay Stasz

weather The the of the many seen given We weather of continued softness couple weeks, did more last still got Mark October. step did periods. markets, in strong seasonal largely said, We in better and up be but driven acceleration. in these October, time has we because from and see was expectations, our were below our it that have we've September, has an hard to goods as consistent that by throughout become

tied for that to seeing. kind we're you I in that comp is quarter guidance most trends the of would So tell current the the

Mark Altschwager

I some much the brought a been this that central I nice How benefit that's efficiency ask And And the of centers. then front wanted opportunity also you into XXXX? initiatives. processing I about know on checkout, then to up remains guess self relatedly, year.

Just runway like update for the on that what initiative? looks any curious

Mark Walsh

this Mark, executed X Yes. rearview the mirror checkout behind largely self well and at that's the pretty all was much That now. across is in countries, point. us

strategic investment. mean, that run. CPCs, we I So was this -- yes, home a is a multiyear

make progress. very solid We continue to

have today. of end Calgary the July. at opened CPC operation we reminder, X a in The As

the with very We of this opportunities, focused we improvement production store the on. for makes out sense. But we efficiency. open facility as right what those And facilities, to yield CPC in XXXX, have talked additional I'm more in we new that And pleased and year a if Southern location about, continuous market. in the the facility plan California, that's month-on-month all, remain most our is of coming Minnesota we one one of then -- just economic possibly improvement find

New very sites attractive possible that the of CPC. by made that are the presence to are only us,

So forward. the pretty continuous the and team with of the improvement happy going progress

Jubran Tanious

in very and our automated and pleased non non-CPC processing I'll We're continue and returns. units both operating book And will The with markets. to those, add. IRR deliver those we of CPC significant continue rollout

Mark Walsh

to stores, that stores is on XX up year, XX XX serviced Yes. be of currently the guys by will the AVPs. end The By to this number stores. headline

Operator

their This now for session. to back I'd the hand management our final question-and-answer concludes like remarks. to

Mark Walsh

we to I'd holiday. everyone our to results. fourth great forward time quarter again interest for speaking in and thank I to like look their Savers. Have when you report a

Operator

Thank attending conference you for call. today's

all You disconnect. may now

Savers Value Village (SVV) 9 Nov 232023 Q3 Earnings call transcript