SVV - Earnings call transcript Q1 2024 | Savers Value Village, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to Savers Value Village Conference Call to discuss Financial Results for the First Quarter Ending March 30, 2024. [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 SEC for a discussion on those risks and uncertainties. Please be advised that statements are current only as of the date of this call. or may is update do measures. under required applicable company the statements so the also by it may future, no law while choose non-GAAP these to in unless discuss And certain company financial regulation.The obligation to reconciliation release non-GAAP to Jubran and call from on directly of SEC their be found are these measure Chief Operating and today's Chief President and GAAP filings.Joining Tanious, financial can each Executive Mark in of most A measures comparable today's Officer; Walsh, earnings management Officer.Mr. Walsh, go ahead, you may sir.

Mark Walsh

afternoon, selection today. proposition loyalty value Good underpinned shopping and program, on you. by everyone. started footing, product underlying an that Thank experience. Appreciate is you us solid growing and We driven joining secular by a trends, unique XXXX our

want beachhead growth, X.X% small in number growth U.S. be and the in today, we X.X% are sales trends discussing divergence a adjusted in QX, results. delivered announced accelerated line the new store quarter the call. We of One investments Canada. pleased and is differentiate the results of and ourselves discuss theme and our in $XXX first we establishes growth results, with on Overall, were million to trends opportunistic representing we EBITDA, space, expectations geography accelerated with afternoon.I'll we we this and that support an today thrift a pipeline, $XX.X a respectively. where which have start that earnings CFO areas our last acquisition finally in our are white in to we our making will million first we provided quarter a of for that chopper we considerable transition chain performance strong key our namely southeast, have the and between

increased X.X% store donor, difficult we Canada on basis, the given penetrated is negative dollars, a up of Canada I considerably a to aggregate will results. seeing acceptance where as are were what more Canada, tended referenced, be comp macro also where exploration but their X.X%.As facing a presence X.X%. with in our our more X.X%, more conditions years. U.S. X adopted, spend more discuss X.X%, have indicate discretionary we'll Moreover, macro impactful Canada United that sales thrift while currently pressures already sales with established we and comparable comparable thrift existing shopper than our in are in on States. the X-year the continues X.X%, the and grow.As are or In grew already and up in consumers and U.S. cautious thrift in the saw the bit, stack sales by Specifically, the to we with of our have aggregate while Notably, X remain interacted XX% to U.S., consumers coming widely over we have increase

sales. facing macro invest are to drive in continue we accelerated Canada, we While unit in growth headwinds some to

start of consolidated store X in additional our we at of XXXX, to of this track our to X stores to stores As you year. growth target will that southeast XX Jubran our this X% Peaches a add via in the reach we and are representing discuss year XXXX are acquisition, with store expect on leases will shortly year, we total with already base pleased recall, XX XX opened XX the report the signed.As in stores opening

on store openings a year continue in cadence balanced targeted engine economics, space schedule development growth significant next performance well with estate turn over new weighted to new importantly, we demonstrated team has investment schedule beginning XXXX quarterly The our have more a us.I'll strong backend exciting XX% in powering and positioned newly store performing are are resulting year-over-year and opportunity are More opening have line in unit plans basis. to call of stores the year, for we of the real our the with and this north the growth we recent and white model.We on opening given the return now of of front our discuss investments in in to expect significantly opened to the made southeast. acquisition a Jubran a accelerate more underwriting the this our

Jubran Tanious

underpenetrated opportunities, markets and are continue United by the U.S. white the to we huge currently secular no we have strong most States, Mark. we and ahead now Echoing Thanks have we space of major growth that the in trends fueled Mark's presence in, in Right comments, tremendous us. operate in

the U.S. and in no presence Southeast virtually

presents obviously which Peaches. of this by us.We morning a the in store acquisition X for a thrift regional the announced of significant South, chain Georgia opportunity name

upside analysis As estate significant of the demographics indicates part attractiveness of given process, potential the real diligence our the and itself. local

acquisition states the new not have opening the discussed, we in important new entering a or to factors our is unit to a grow is southeast. previously such the of material southeast, the store some XXXX supply development an our financials, home one this will region it a of gating in a when strategy the in fastest growing the country.As as key geography as like from growth While the to be which of new provides impact beachhead

to optimize part to stores In operate bring we initially their the delivery, X real will starting proven processing and that we long transition as existing our with haul to the times overall of attractive centers feed Value supply. X ability supplementing from centralized in will lead also estate we selection cost processing the remaining our to our nimbly proposition Savers very new allows Savers Village stores integration, the customer, and base addition and the supply processing Maryland. capability Peaches area local value transportation to costs X Village have That goods. the this without to the by the stores regions of allow a off-site to X stores centralized elevate required stores convert scratch.As transition us in center and support to Hyattsville, enter manner itself, the the our same more of building product their Value and offsite faster overall to of Peaches and the processing model to us will quickly and Leveraging transition an longer locally.Over local critical with from time, compared

the less traditional We more these store our expect the match to with curve curve see locations we maturity on openings. new or X-year

late reminder, Finally, the are operate currently plan in book open year to in in XXXX Xth centers, We making California in new in opened investments off-site support smaller processing either later Minneapolis and centralized last further processing our processing with the warehouses, having units.We this region. to centers, year. growth continued automated western as centralized housing production latest or early facilities, a we X

off-site We opened Mark. in call a turn XXXX. continued also completed processing of This growth facilities future investment illustration deployments great X X is I'll back in production to supply.Now, new in and and the automated book our retail

Mark Walsh

disruptions to number headwinds points. weather our the other Thanks quarter, weather in in shopper environment, some Jubran. January in the and a retailers, of challenges. that financial by Like macro QX external the XX first broader factors traffic basis impacted sales results. early many faced impacting quarter, in Severe Returning closures and we and resulted QX store created trends approximately

and with experienced addition, holiday fiscal at the shifts points. QX associated our Year's Canada of quarter the impacting approximately and beginning in Canada New Good sales XX end unfavorable we by basis In Friday,

last challenging end members. mostly While to from a as we our in mid- U.S. by in the time business we is many by pronounced and have was QX our of fewer revised for was gotten late with experienced not did year.The expectations, expected. our slowdown the non-loyalty since retailers This stronger headwinds perform in line driven softness primarily Canadian macro business a in visits March, driven Canada

our that about of continue March in a X. Canadian fact, at non-loyalty year-over-year in quarter from resilient lower often, particularly our month and amongst base we our members loyalty loyalty attrition, when firmly and takes the segment to income This and are XX.X% for committed member members add the tends more best comparison, sales. highest effective are pace growing future. demographic customer of younger sales our members market, our be the were data loyalty remain our shows shopping who when Importantly, of to Moreover, more economy in core household who scale. a low to By satisfaction on downturn. shopper make healthy the stretched represent skews brand, cash spenders high of They're customer less and typically in our with half Canada.In as nearly the XX% up happens uncertain people our sales end

uniquely is be goods operating margins. more line nimbleness to of locally our demand, limiting positioned where labor, these model our our pressure we production amidst believe we our perform can manage cost operating labor Value Given model consumer supply production Savers adjusted Village with thereby be and where on is principally and EBITDA to provides to in headwinds.Our generate our

aggressively price. shopped marketing recently. focused America categories, focusing increasing these We delivering consumer, delivers frequency have customer markets, Village have already When with which certain in quality the to continues items remain promotions may and we testing efforts, which consumers, unique us environment, trip in to targeted drive be frequency our purchases begun. and Canadian know North to customers on ways increase who not comes In offering and and value are positive. to reengage quality will right proposition production the consumers this Value data include a value.Savers shopper it very These certain on at

high. customer Our remain satisfaction scores

remain I'd today. We move the take believe today's the resonate with transition consumers.Before results, levels we CFO is Our of continues to like detailed our on and to to merchandise to positioned strong. customers' I our very to needs moment financial a address shop intent announced selection brand shoppers to meet exceptionally

through is Jay X.X% perfect We recently in is IPO, in new our the Michael to replacing you He on first with years many as looking finance than I as XX Monday, a Village detail.Let's his as I'll million. CFO him we Net Michael are contributions the of with Savers Nordstrom. $XXX seasoned to is financials want a to board. thrilled us fit experience, more of forward for thank successfully increased capitalize welcome opportunities to and our joining start on Value Savers all a for sales. we on have leader today, our launch little best.Michael us consumer and CFO, Stasz. growth Jay to helping Maher But to quarter effective really take him Interim calls. retail our sales wish we're position to more future excited accelerating most

the sales X.X%. store by was Our new comparable net openings growth same-store and driven increase of sales

higher coming in from sales States, higher increased with percentage in again X% increase in processed a XX.X%, to net as the quarter. sales We percentage of in which the opened percentage and was which in XXX On-site sales the by declines sales Canada the driven of the was material yield processing quarter and of expected, declines our secondly, were in half in of year's up was an sales were merchandise first XXX increased was with X.X% donation primarily the material, year's processed processed expenses we levels resulted things: sales and transactions that year. the to and second net and ramp X points declined the driven production quarter. compares comparison sales month million were donations higher net Canada, do Comparable In transactions a first in against by increased year sales pounds processing an new first a last facilities. trends, line benefits consolidated In non-loyalty in comparable versus the in and the X.X%, driven centers labor as basket. $XXX.X aligned a benefits QX. the higher-than-expected $X.XX a mix in sales care X driven look same-store sales and as The a costs. highest mix. sold and increase of last unexpected quarter.Pounds last as sales sales pounds labor The The those store deceleration driven in were of productivity, on reminder, claims a rates, As net by by to have X.X% with Comparable and in store by XX.X% quarter labor of sales yield of basis.In from the production and freight driven increase XX.X% increased to in late at quarter, increase of $X.XX. members.Cost March and average a million. GreenDrop labor, centralized in X.X% better $XXX of XXX costs of United year align expectations X.X%, Since demand. the basis the represented U.S. flat both million. store sales by in difficult of Canadian in with from to it of properly March.While made the last late drop-off we align percentage the consumer health X, in quarter in This May production levels processed generated we and increase million a pounds Canadian in

first bonuses and first figures expense were last pleased $XX onetime again million our year. last million was in IPO-related $XX with the and quarter first special year's million of donations to on-site first quarter. quarter inventory.Salaries, remain included the year's compensation of and the million in Our of These stock-based we this in strong $XX benefits very quarter in $XX compared wages quality

rate salaries, $XXX XXX increased by primarily In net by to over EBITDA quarter for a we sheet net points, The driven income $XXX.X adjusted the steps of a strengthen and lower as in relatively was quarter, borrowings we quarter equivalents. our basis combined to Excluding lowered on benefits of last diluted a were to late to maintenance paid spread and agreement. the as GAAP million our utility Depreciation balance XX was We've million. decline our senior net we credit to expense interest quarter. of And per based administrative end taken XX-month past first number of Adjusted or amended year's January, percentage leverage X.Xx. secured trailing decreased our months. decreased first several $XX.X last incentive upgraded agreement sales our total to April.In Moody's, corresponding debt first our with points The Adjusted subsequently amended in our million XXX a quarter. and percentage store will with by $X.XX X, million the share down XX% quarter.As senior rating X.X% our by rating amortization balance to million, well sheet upgrade in driven cash of of EBITDA March, $XX XX.X% sales cash notes. $XX.X was basis and to our borrowing strengthening S&P early loss April, ended net realized to margin second And and of the primarily net $XX.X proceeds our on principal basis and while of cash secured adding net with and to terminated At LLC million first finally, the flat balance the million at in our further share the quarter, first these stores position we a X United wages expenses and lower million.Net XX%.Turning after and first million, mentioned, first we EBITDA, rate increased $XXX,XXX. items, end diluted May XX.X% on as our adjusted the acquired Peaches compensation.Selling, points interest swaps the XXXX. XX.X%. to general sheet, Seven $XX.X XX%, subsequent be of adjusted the included the outstanding cross-currency compared and beginning increased States $X.XX was quarter year's in income our or costs. $XX.X declined base credit per EBITDA $XX.X

our expect discussed these investment year we these earlier, in and from do increasing opportunities As contribution X material are not stores. growth

the and strategy markets.Let are how discussed, year to an rest section up this comments step business figures. thinking guidance for financial the few represents acquisition the a new in important me our our of Jubran about we As on forward with wrap open

reiterating we year at billion. On side, the our $X.XX billion sales to full $X.XX outlook XXXX are

we Given the be the new the of of performance midpoint inclusion guidance expect of above and $X our sales U.S. the Peaches, million with stores X at to range. from or currently total

X% sales range the in likely of Canada, believe store comparable we are macro full to the and basis, be a quarters. and year, Canadian are we sales X%.Absent of to performance. reiterating comparable store X.X% X.X% sales consolidated the the first X% for our to are modeling comp in X% we the end We improvement year will store comps at comp of On stack growth come also our quarter, X% between X-year diluting for increase lower in with remaining a more range

profitability new the a total from As and our store The and line in bottom sales in sales trends, openings production back mentioned Canada the the quarters. the to improving this help easier year year year same-store production comparisons early the higher reminder, demand the growth levels we should benefit leverage net align to of drive progresses. as in should and should get acquired and sales with stores.As the in earlier, cut net of X flow-through May Peaches combination as progresses, coming half

to XX.X%.With the the long-term sales on adjusted to basis second continues net from and beyond are expect we at ahead the million, basis adjusted $XXX sales year contribution conclusion, adjusted in in Given range store first of algorithm to a Peaches, midpoint pressure openings negative comps, in single-digit our and processes the mid- the solidify. high top percentage half, $XXX year-over-year X of and the half.In Village of increase our we new growth line full year-over-year year the marketing the the the year our back an effects in in to Value a would Canadian increased the guiding stimulate EBITDA which Savers accelerated a range sales, increased flow-through guidance of in million of X higher of slightly an to team investments Canadian efforts total second half half EBITDA in to would be year, outlook the of EBITDA to and margin XX% decrease the on

flows loyalty stores, execute trajectory to new by drive the to in XX new that of our innovate the X shopper self-generated steady by I with at value off-site new accelerate technology an flow of leverage continues questions. that production like growth average provides are facilities, the being overall thank processing stores year existing our passionate via new XXXX, highlighted program, to and of Operator? X and and and team unit stores the away book automated end and markets supply best, X.Xx growth a cash truly people the openings took the new Our Peaches call you I be with it we retail to transaction, this delivering $X.Again, in data net X X open We approximately all strong double-digit consisting deployed deployments, member highest would to to the our and for while opportunistically invest significant to it's cost-effective to organization expect of and I'd most of new store in the acquire, hope industry. around like open and XX believe in levels. now our members all who of satisfaction,

Operator

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

Matthew Boss

Great.

off, maybe in second you as change far it? first change in for all Mark, any trajectory to or quarter this in the your the of the quarter? U.S. elaborate as And see trends traffic you U.S. business kick any health the of could on at speak year so trends to So U.S. basket Maybe business? progressed,

Mark Walsh

first U.S., about excited quarter really the We're trajectory in the No. the positive.

a us bit takeaway same little as price. a comp, the see quarter, the the trend. X-year of mix us we're of it X.X% into We second think stack. for I And like transactions, the we seeing that moving was

good question stores really XX%. feel just to satisfaction happening Shopper I think around that to or added continues the what's down. stuff see loyalty trade all above merchandising And our we brand of resonating, the are thrift program. exciting of resonating. new expectations. another We our in performing most we're piece experience grow. super is U.S., about always is this our X.X% is the thrift our And is the That think exciting.So I we So way at to continue the resonating, our is

demographics. see to all in acceptance continue household We

of acceptance, Peaches for this however really we it, demographics about Jubran feel And a you well our the want household in the X great the higher trajectory describe I architected the step trade as U.S. our acquisition, in income, us, is forward as U.S. to expanding lower down terms footprint So in must secular good say

we're XX% If year, by is you and our rolling really for at us. just which footprint, going actually a to U.S. step footprint grow look the this exciting forward U.S.

Matthew Boss

down margin, margin the first quarter margin think And cadence to of then gross on gross contraction drivers year? the best back the we quarter? about of that could in gross the you half And help break of versus how in saw second just the

Mark Walsh

give employ great question, additional to Matt. color. commentary to the That's I'm Jubran halfway a through going some you

margin lower XX.X%. budgeted always X year, rate So look, has points, lowest from starting margin. things around This quarter. at have contextually, First our quarter that conspired our been we Building forecasted gross to really would

We little we at First, beauty found demand. in as all kept holiday curve, the production is to of that it's weeks, get to large in to in changes. the these, were series a place our hours used production the adjust our or unit to the the I'm But like to give our through we that with Unfortunately, balance I'd production mid- expect couple after had And the the shift experience into our forecasted say we great really -- the removing the our quickly budgeted those trends off a of very would noise, mid-March, -- crux targets. take and demand.Look, we ability decelerated near mentioned turn chance we and on we the misaligned really just how can't weather stack. replicate.Second to levels disruptions that to improving a March, what of these February, really -- in labor. an don't off. matter the real X-year team this plan our very and after case, have an the perspective than March, late production February on different excited not benefit of not is you through saw our about were and about and was the leaders on very model the Jubran prepared and a after we we Heading remarks, production to of balance switch. has back the have moved and hours a got quickly. approach to and more making May. Jubran country But We to of detail get of in the that went claims

Jubran Tanious

We X-year plenty of like Yes, absolutely. X stack -- weather in saw basis, the first QX, in but we a periods. we on what

And in we after want was customer going I so we be play there. out thought, mean, believe The real. it to to to continued starting didn't It to demand way that. we all, wasn't. change. pretty March, be don't selection we late sudden the macro underfeeding mid- that when And was the

call operator. Mark everything this it, And turning durability, want as the in so to to said, resiliency, as again, we're store The because, we whatever our need well of the the flexibility weeks. is X merchant X over recalibrate business therein to you in stores, every lies and

is study a here's do of it. case the perfect So we it how really model.So would kind of

in We very have place. good a plan

we not this. take to brush And do a that's The at We important. thing know look broad first store each approach is individually. that to

fair that over by are between. see handfuls great trend ] are as think intervention. we Canada, of processing into no other are stores a [ in PX And amount that frankly, and shape require you and continue there then there stores about in then everything the are As

we at go, So category get level. we surgical isn't the it and really one how fits level, department a then both really at size are store the processing below with cutbacks the all.Once the

it and also can out.And long level, some So the of just where associated opportunity sell-through again, categories stores as the for but so a with can combination. within size not either. we the think lies the labor dresses, about, how do relatively example, and kids like again, where These department opportunities, not labor? of low pounds all women's, we then remove are biggest capris, cost trim remove processed, biggest some categories it and present actually a women's knits, you cost put is right? well, follows at labor really that fits items one It's because, It's sleeve

scheduling natural Some it's attrition, some on so of it's change, through of forth. so through and

very we the feel forward. good plan about going So

we to of year in I start start think as enjoy as the the Mark leverage. to half, the some we scale more into get back mentioned, midpoint

So place the are going we in off us put we pay moves to move for that as forward.

feel I the of surgical about good plan, a the approach. is what I So proud think, very smart very for, team

Mark Walsh

we'll -- with comment in ] second [ -- and one more approach, range year the I'll compares add Matt, And confident the just in for finish conserve, half the we're easier our for half XXXX. production conservative margin the more back

Operator

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

Randal Konik

and Just say, helpful. be about of of with the thinking next, Canada seen the this so? historical we type years be how give speaking, how before I macro the numbers guess couple would and first, thoughts maybe you've environment how give this should us your in over there let's maybe Jubran, super perspective market through us it on will thinking be or Canadian performs, helpful, Mark, generally some movie or

Mark Walsh

I Canadian what market the our our say, really first, think the our starting what's position Randy. would about in I United position point, different is States in market

So are shopped and awareness, with Canadian households. X by in estimate we that X XX% brand we

we're really fabric that, into about of think Canadian you woven landscape. when the So the

about the as non-loyalty that member is struggling. really that's that we one this is member, that's -- that -- one the non-loyalty think and So

couple rates. XX%. satisfaction feel certainly And base. with represent still low of are where in, a loyalty are those very is trends still have Canada sales still XX% They about in members coming of those shopping, our So our still who good attrition loyalty other overall points.Shopper members

here. Canada, not we're competitively again, I'm not least are at These where within since Canadian good really things been we that we've sure in I've So seen construct. about are

rising ticked unemployment last over You've month. got X%

just You've of to X-year some believe availability proposition in that about gain we've actually continue very affordability at housing, you we're X-year with a X.X and X.X%, first the got Canada, share.If obviously some think quarter suited share. think gained with in we value overhang well our and our stack to we then inflationary pressures, stack

again, think, depth and the I marketing our our period. difficult So approach of help the going as to is us to our time value awareness proposition, goes economy through this Canadian

Randal Konik

then some give we centers the to as potential. us margin and initiatives And productivity with relates as improving relates where the just enhancement processing various on it processing book to Great. and it just perspective central maybe long-term initiatives are

Just thoughts give your us there.

Jubran Tanious

we take one. Hey, all, feel I first of Well, Randy, good that CPC. can Jubran, very about

that opened CPCs. one The is currently latest So, X in we we have Minnesota.

opened have set Minneapolis very it's cool able that we CPC, actually the of most to And our we we're think long-haul using recent grown faster. them the capability the that ramp our these, if support experience what call stores. facility, things is about one has we and we're unlocked about to As

X the open able what be doing the are Falls, some challenged as Sioux do ABPs, the plans stores XXXX. to able far possibly all Xth that CPC.So, be the Los early supporting a well along it. stores So we're as doing think services and will year, and it those of of and the this to Peaches pleased customer have Angeles fabulous. in bring in either later market already more X, remote, of to ABPs, also value Cities, yet all, return CPC you be selection that Fargo, we Canada. by this. to curve the gives we're on we're Twin nimbly the about experience they're terms us investment in to in to and bring market, because value And And again, very selection X, invested the with presence where continues confidence thesis the U.S. will the and still the X-hour but the that's very Really facilities to have locations in quickly the and because those of doing drives acquisition, year, it's customers we time end pleased. labor on on capital.So, we're this X already all and We XX places in

from about we think is traditional happen a the past.Well, like every stores talked that one talked is then, of would couldn't attribute ability unlocks a warehouse on only is the the double new perspective, And that still we've about version of where to CPC stores previous We would light make make need new use to investments And offsite check warehouse. we're other open Mark continue talked in necessarily that had those a things right, I we've I that this about. it offsite dock of we to to CPC one the from kind add call, where physical doors, otherwise. the the don't able that

applicable, Long So, there that where as an very are Island, is example. markets

expansion Island. have in We Long plans

make play As going large helps that you into question, in and be I where of island there, comes X about we're very did space production offsite And an it's warehouse estate the the Randy? and that's real on happen.So growth Island, new warehouse think store answer opening availability Long limited. to your the

Randal Konik

that Yes, it Really helpful. guys. super appreciate was

Operator

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

Brooke Roach

affected? you're of that seen as some guide? implement a comp reacceleration and to in context your these marketing you've far. reads Has on the been promotions that of driven have what in the you drive XQ and taking those within reacceleration to full on early hoping could in Canadian comp was so in what embedding are elaborate of provided for customer you've actions loyalty, begun Canada a discounts, engagement changes I you the And changes. the You've lot specifically, where a year

Mark Walsh

We're mentioned higher. around we it's And too as second stack marketing bit and being as remarks, on with we're on I Canada in first. think yes, prepared a -- part targeting Brooke, of -- lower the targeting States efforts. being and, question we early, a United the X.X% let's the X-year think the overall, start about that -- of the

the markets designated have taken have if better to implementing some certainly next we'll have drive efforts a got foot We're increasing to distinct we've distinct move can gotten started, market to impact share on X several we're over on the months, our We -- we connected the as voice digital think promotional see traffic.Those just category X initiatives we forward. and in TV X I of much read in or ramping up [ drive activities a some traffic. And we're drive performance. program, win-back ] up heavying

those the So, next efforts. be group able the I'll probably in update on to call,

Brooke Roach

more by year. new to of should new how anticipate a maybe those your stores XX cadence How openings comprehensive to then we you plans And these do store split the for geography? update on store the quarter? opening And by expect split

Jubran Tanious

question. Good

remaining By So, in X X X And in third Canada, end on an U.S., in in quarter, X are U.S., the of the additional fourth of -- X we locations, the X the of XX, Australia. XX quarter, are those are opening opened of Canada. in we Australia. X will are the we opened of plan quarter, we the the will by are have we those in the time the second U.S., X then finish have in which in have X,

a cadence, that off of again, a have things forming. with a way. in lot are the puts already real the balanced we this the muscle get in And more function XX XXXX, previous fabulous XX very that in a still the in the concrete we to once of X say that up.So, in still And into I pleased a those start. backend-loaded quarters steady where U.S. feather The we a hasn't at is in stores yet. on share. We estate now just all which I where this we on that call is was performing would of state, U.S. So much certainly XX, Sixth building of are expect across talked the of line store QX to And how that the mature we hopper, we've year. set been can a is of one of openings real have them QX, stores function with gone is the what overall, estate forming. these team And about expectations.

year. that a of on deals, We the so, data point. active into ahead and went the QX if front of QX.One estate really took of the of beginning And in committee, deals." we're active you here and hopper other look at What do starting last pre-real hopper deals today? sit did right looked the we now, versus did potential at And this times And like X that deals. time of year. May than the X.X last These some where are we're this end we look "unofficial sort back at sitting the of effectively, volume we will,

the built, just looking we can just pleased, encouraged remainder So, have very we're for of momentum, year, XXXX. how they but everything of and not the see, again, that team, the proud into and the flywheel and very

Mark Walsh

one a probably the have do leases and signed. it's Yes, redundant just this -- but for of reinforcing and the XX are we stores point, XX year,

generated about terrific absolutely we've last momentum estate. feeling we're XX months over the So, real on the

Operator

next question Peter Sandler comes line from of Piper [Operator from Instructions] Keith Your Canada. the

Peter Keith

Oh, Canada, everyone. but afternoon, in good not

little those compare and X ramp sounds Ave wanted contrast sales the to Peaches I recall ask to just different. on up. completely Ave., So low a work you the you're sales to back Xnd about profitability. like Maybe think dialed actually and gonna Peaches. I acquisition Xnd because Maybe are you could I is X It

maybe then, $X those Secondarily the of of -- I revenue name? said on X that lastly think Peaches, just you brand you convert months million going sales. to And is for are to Savers

seems amount like low a dollar So overall. pretty

Mark Walsh

jump most quite you So, on the Jubran Village on but I'll I'll in the we let name. those name, Value answer. like of questions,

going keep we're it So to in Georgia.

Jubran Tanious

yes, to -- a you're Peter, Yes, Xnd great opposite. is or kind absolutely. comparing compare and you're it is contrast And -- yes, of comment it's Avenue because, the

them when X see modeling. potential real tell as they they're in at would we centers. committee, that these locations. approved. you is, be organic being what great we X-wall would these plug were we They're locations our if we new our in estate And at good see real in We is what good estate trade locations looking into I these look brought So areas, to

So, real I reasons, the for the that over been is we've of of think a X-wall perspective. effectively what that selection of customer a thesis is and variety potential the from the that these the our and underfed seen time is quality given challenge, estate has stores,

Village increased the the that able talked to again, Value CPC So, and convert nimbleness, and we basket go. the Hyattsville still leveraging the we we're flexibility transactions given quickly with given X banner those, of about, as

Mark Walsh

this these process And passed this southeast, inroad, and said, one the win. the about potential. to great of X CPC a we through stores of because up one did big, is supplement to on not just actually see mustard, those is interesting the Jubran love ability did analysis super is, an in we our we of what the the Peaches or stores. yes, basically of weren't standards. Maryland And supply the our real big to Yes, at that's how the supply obviously, led X. looked basically X process X and and X and universe X We And to estate we the stores, take they each things

really to ourselves south. this. we deep So, the excited got a great We're think love we really portfolio into way get and the about this that we is

Peter Keith

Is year. Okay. of $X that remaining It of the was revenue months X the for million correct?

Mark Walsh

correct. That's

Peter Keith

Okay. get maintaining guidance. to trying the All right. Separately and comfortable Brooke's just maybe a with I'm little bit comp follow-up question, on

down of that thinking does, X% break the for that out and a That of have year. rest enough imply of U.S. low me, model And if a to So, the I X.X% Canada. you're then like further, about kind kind fair I like end. the flat the for to for

kind framework. comfortable us healthy good if countries, it both acceleration help in of and implies maybe, is pretty of and So that a kind framework that so, with get

Mark Walsh

about X.X% for the full Well, I consolidated last for second we stack the PX things comfortable about and think of X-year to as Canada, the X.X% recall those ultimately X% range the that you year. X.X% the easier U.S. the in the year And which is progresses look, X%, think PXX we're you for in of gets our comps one half certainly X-year year if year, as get it's the X-year and and stack the stacks, entity. that in

Operator

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

Michael Lasser

in bit Canada a happening by Can you effort the being slightly weakens impact you you an economic if the more your in and more take potential that action would being weakness in frame of similar be quantify comp? the impact how from will promotional And to to Canada case? what that here, the some such comes would that's comp support in U.S., currently the promotional

Mark Walsh

great a That's question, Michael.

what me we're testing, start are doing very, prescriptive in we're about very let Canada. we So, with, being

are transactional to has those promotional things on different then what, perspective from opportunity within taking markets and and markets any, growth about if a country-wide very the We revenue a doing a impact perspective, that not of margin. see approach. activity testing We're from and specific

into approach that So, we're say economically we're wouldn't still country. an would for I acting testing within that being, we're sense but quickly, us because cautious make

Michael Lasser

the times. down that impact more challenging you be comps in or of perceived providing you think not historically, to during you're why here? trade see has that seen seeing Canada? And U.S. Mark, a could economic the do support model benefit thrift are right And to some that your now in seeing

Mark Walsh

at the first, we demographics. U.S. tend What Well, higher about We see be increases X piece now with the cohorts. start our excited is, of I'll we're in skewing Michael. to all

they're could how the more it's you We though. and little it's thoughtful is thrift their experience trade think -- as people purchases, fun describe and down. about more So secular, there engaging. a about think approaching is it being it's more We

think the it's hard trade U.S., in a say a it's bit to down. I So,

we X again, we're I thrifting Canada, own based estimate That's XX% experience.In to think the XX% like on X and think it our more secular have of of -- awareness. demographic as We're we thrift a in information brand trend households. have. we around the

or Our a overall to lower be shopper -- satisfaction we're income. scores perspective non-member, be around tends having really getting to are the from of non-member and We're troubles and hit the we're tends younger XX%. where is where comp

are think marketplace, household and read So, I the individuals window.I those to selling items. discretionary we're and in see that it's textiles offs. we folks think do we gaining and are difficult These based relative they're from who dollars, on making trade for what share just other what

about good feel we So, positioning. competitive our

in look first of last difficult we first had I where in X%. quarter lot the a difficult compare of that but are. at in think X-year in when you And, stack in comes at Canada off quarter a year XXXX, a yes, very Canada says quarter that we our first X.X%, about the

Operator

Baird. from Your of next from question comes Mark line the Altschwager

Mark Altschwager

like get mix be a quality material with in issue supply there traffic the that or basket in On any at much it's concentrated been conversion non-loyalty and trying to of of sounds and might Canada, Canada? change it Has and mostly goods, members. contributing. I'm the how

Mark Walsh

has We've basket, not has seen it's basically and followed so pretty big transaction, -- speak, in linear flow. comp change the there in comp a been terms transaction it's the to of because so

Jubran Tanious

on supply, we quality overall Mark, detected And Yes. have change supply. not any the of in

healthy momentum, brings the half first growth, know has pretty we yield generally nice which a forward fact, it. with of in In particularly donation Canada the onsite enjoyed QX on sales

So your to -- quality but no discernible question. change in

Mark Altschwager

how certain And opportunity in addition that planning, remind a specific and to unpack the you of most just more some donations lean categories, your raw, given in more Maybe do goods? production to remarks, the us, the into about are bit that have marketing go you're you think categories. the concentrating in unsorted prepared I you mentioned

Jubran Tanious

is XXX When great in Yes. stores, very those we of jeans comes remember, -- or to have, a take, sell that. it well, categories Men's our predictably. very of and give example some gosh, oh,

in that women's Because, that. store normally really out sell-through long-sleeve Mark lunch again, sell-through. context the get have selling Some for day, out is of it's to what would on lower the function even cut per lower. knits. doing And the what Canada, break, half we're after a Mark, properly the diagnose that long-sleeve is categories, do categories, when no of, Women's those going just just knits will anymore. put of complicated and an team now that are the the back What's once as knits, to -- first in we important in of that example.So what in our stores we some not well, teams we described the It's right. we're some store everything there, we long-sleeve of lower situation sell-through women's macro on more capris, a than basis, certain putting put out are there fine want

would to the removing So, want pulling that those are we then with of and associated terms last in it labor back it. the stores touch

is can something example that the the I actually execute, like key the granular with So, surgical, that gave. team just

Operator

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

Robert Drbul

be more give see wondering where curious and was the going. curious just, And guess, numbers, with can us time Georgia use days, the pretty just onsite and X [ if I could the just just there something the I And sort could Peaches I there you the GreenDrop and spend up I'm that these acquisition? that's you an just GreenDrop in on The donations. trending. also ] you update would then, just plans around initiative good of if also some sort was of you how

Jubran Tanious

actually that tell friend, donation work fast, Because how can I -- old that, the would store terms the -- X donations, is Yes. where family -- of friendliness. to on coming donation center #X refreshes, onsite I has comes new donors operated by scores just our #X right. donation Hey, think assistance, #X team in frankly, level I of have convenient, you in the a king. think are so countries, a centers donor a experiencing a landscape drives our coworker at all friendly that reason That and experience is work is told donation satisfaction hard not terms the one Onsite them across they donations, donor that at.And visibility. the that the And forth. to reason something advocacy, does We've we But lot was. sign, us on then plain drove how they saw of so are teams the the see convenience, never The Bob. Canadian team before. what member, is is after we ready, the norm. talked at of the better I our think Convenience and centers team this know speed, about reason a

well the ensure to So, grow onsite helps doing into that that continue donations future.

not long well. donations or that to as expect X grow. would no is but going the there, term, -- So, as haul, grow.GreenDrop, here onsite long reason concerned, there It far we countries, doing a all to in over about take may Bob, over we're dip GreenDrop's you the no there's GreenDrop, asked they're

talked how model last municipalities the works, goods, plan locations the the of think unit it lot staffed terms or that I on we've about are the of new opened, education they than on we process a and quality the an in is GreenDrop performing at better for cost. volume, of but the that the call

excited pretty we're about So, that.

would some that thesis first, things they last first that.And now. about think I tell a I the which oversupply pressure and you, very of from an a market. supply home Bob, think periodically, like How between we of I Atlanta and normal will situation an we bringing We business supply And on mix this off do actually think GreenDrop pickup, a place kind channels, of we're from -- track transition we're good relief situation but It's in step X to situation, situation, raw right to about we stores. for the to of it's that good an question your some incumbent have, some which year. feel sell the course valve, overall of do, excess somewhere is of to quality, open do supply part us your XX the material we overall these the periodically be. Look, spot XX was above, those Taking want we is Peaches. pretty I bins, but amount, to think open on.

some to to the we of X-wall stores, and part acquisition all the build equation not I performance but of the improve would and to think opportunity for that just us agree well. sophistication there's as bring an the also horsepower supply upon

So...

Operator

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

Mark Petrie

outperform or major markets? urban smaller quickly Canada, variance versus regions did any or Just on sort or of or across underperform, any you suburban see markets

Mark Walsh

seen regional particular, or not trends. we've urban/suburban No, either any

Jubran Tanious

pretty Mark, X-year basis, odd on for normalizing especially Yeah, consistent, a weather, stack yes.

Mark Petrie

just any you're in you markets, weakening sort the or of economy? labor any of given, in shifting availability And of Canada, shift your and I seeing acknowledged curious as specifically guess if

Jubran Tanious

would point turnover perspective, scores steadily. to X Yes, this I time, for January mean, we of From great about held And -- Mark. it's all in all so to terms XXXX, we Mark say I good about countries, it's have seen this what and engagement what's in us, has is our is sequentially. feel this the I question, the again, applies of decline that. -- and held. vacancy a a talked well, way It's until back in past going good pretty

So, Mark, labor it not on in availability varies any the by us a -- holding but Canada, whole, country the at way. back is whole in on market, level

Operator

There are no Walsh. Mr. at I back call time. further this will over to you, questions turn the

Mark Walsh

I'd you like we Savers to forward for interest to thank much. weeks everyone time and of their Thank and to so the and look Value you come. in in today speaking with many Village, days

Operator

participating. Ladies and gentlemen, thank you for

disconnect. now may You

Savers Value Village (SVV) 9 May 242024 Q1 Earnings call transcript