Savers Value Village Reports $1.54 Billion in Net Sales, Faces Profitability Decline

Savers Value Village, Inc. reported a total net sales of $1.54 billion for the fiscal year ending December 28, 2024, reflecting a 2.5% increase from $1.50 billion in the previous fiscal year. The company's operating income decreased to $130.2 million, down from $141.9 million in fiscal year 2023, resulting in a net income of $29.0 million, compared to $53.1 million the prior year. The decline in profitability was attributed to increased costs of merchandise sold, which rose to 43.6% of net sales, up from 41.3% in the previous year, alongside higher salaries and operational expenses.

In terms of operational metrics, Savers processed 1.01 billion pounds of secondhand goods in fiscal year 2024, an increase from 984 million pounds in fiscal year 2023. The company also expanded its store footprint, operating 351 stores across the U.S., Canada, and Australia as of December 28, 2024, up from 326 stores a year earlier. The U.S. retail segment saw a sales increase of 6.7%, while the Canadian segment experienced a decline of 3.1%, primarily due to unfavorable foreign currency exchange rates and a decrease in comparable store sales.

Strategically, Savers completed the acquisition of 2 Peaches Group, LLC in May 2024, marking its entry into the Georgia market with seven new stores. This acquisition is part of the company's broader strategy to expand its presence in underpenetrated markets, particularly in the southeastern U.S. Additionally, the company announced plans to open 25 to 30 new stores in 2025, continuing its focus on geographic expansion.

Savers also reported a significant increase in its active loyalty program membership, which grew to 5.9 million members, contributing to 72.4% of retail sales in fiscal year 2024. The company has emphasized enhancing customer engagement through improved shopping experiences and targeted marketing efforts. However, the company faces challenges, including macroeconomic pressures in Canada, which have affected consumer spending and demand for secondhand goods.

Looking ahead, Savers aims to drive comparable store sales growth by refining its value proposition and enhancing the in-store shopping experience. The company is also focused on improving operational efficiencies and expanding its offsite processing capabilities to support new store growth. Despite the challenges, Savers remains committed to its mission of promoting sustainability through the reuse of secondhand goods and expects to leverage its scale and operational expertise to navigate the competitive landscape effectively.