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Savers Value Village Inc. (SVV)
:SVV
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Savers Value Village Inc. (SVV) AI Stock Analysis

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SVV

Savers Value Village Inc.

(NYSE:SVV)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$13.00
▲(2.77% Upside)
The overall stock score of 73 reflects strong technical indicators and positive earnings call sentiment, which are the most significant factors. Financial performance is solid but cautious due to leverage risks and profitability challenges. High valuation limits upside potential, but the company's growth and expansion plans provide a positive outlook.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market strategies and consumer demand, supporting long-term business expansion and financial health.
Expansion Plans
Aggressive expansion through new store openings suggests confidence in market opportunities and is likely to drive future revenue growth.
Loyalty Program Engagement
High engagement in the loyalty program reflects strong consumer connection, enhancing customer retention and long-term revenue potential.
Negative Factors
Profitability Challenges
Difficulty in converting sales to net income indicates potential inefficiencies, which could hinder long-term profitability and shareholder returns.
Leverage Risk
High leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term financial stability.
Increased Cost of Merchandise
Rising merchandise costs can compress margins, reducing profitability and potentially affecting pricing strategies and competitive positioning.

Savers Value Village Inc. (SVV) vs. SPDR S&P 500 ETF (SPY)

Savers Value Village Inc. Business Overview & Revenue Model

Company DescriptionSavers Value Village, Inc. sells second-hand merchandise in retail stores in the United States, Canada, and Australia. It operates stores under the Savers, Value Village, Village des Valeurs, Unique, and 2nd Avenue banners. The company purchases secondhand textiles, including clothing, bedding, and bath items; shoes; accessories; housewares; books; and other goods from non-profit partners, then processes, selects, prices, merchandises, and sells them in its stores. It serves retail and wholesale customers. The company was formerly known as S-Evergreen Holding LLC and changed its name to Savers Value Village, Inc. in January 2022. Savers Value Village, Inc. was founded in 1954 and is based in Bellevue, Washington.
How the Company Makes MoneySavers Value Village Inc. generates revenue primarily through the resale of donated goods. The company partners with various nonprofit organizations that collect and supply donated items, which are then sold in SVV's thrift stores. Revenue is earned by offering these items at affordable prices to consumers. In addition to selling donated goods, the company may also purchase excess inventory from retailers and manufacturers at a discount, further diversifying its product offerings. Partnerships with nonprofit organizations are a critical component of SVV's business model, as they help ensure a steady supply of merchandise while supporting charitable causes.

Savers Value Village Inc. Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth in the U.S. and improvements in Canada, with a significant increase in the revenue and earnings outlook. However, challenges such as profit margin impacts in Canada, increased costs, and economic uncertainties were noted. Overall, the positive aspects, including the strong consumer engagement and expansion plans, outweigh the negatives.
Q2-2025 Updates
Positive Updates
Strong U.S. Sales Growth
Sales in the U.S. business grew 10.5% with comparable store sales up 6.2%, highlighting strong execution and consumer response.
Canadian Sales Improvement
Canadian business delivered 2.6% comparable store sales growth, marking a third consecutive quarter of improvement despite economic challenges.
Loyalty Program Milestone
Reached over 6 million total active members in the loyalty program, showcasing consumer engagement.
Adjusted EBITDA Performance
Generated nearly $69 million of adjusted EBITDA, approximately 16.5% of sales, indicating strong financial performance.
Increased Revenue and Earnings Outlook
Raised revenue and earnings outlook for 2025 based on strong first-half results.
Successful New Store Openings
Opened 4 new stores in the quarter, with plans to open 25 new stores by the end of 2025, contributing to growth opportunities.
Negative Updates
Canadian Profit Margin Impact
Higher production levels in Canada impacted profit margins, expected to normalize over the coming quarters.
Currency Exchange Impact
Stronger Canadian dollar affected sales, with limited short-term earnings impact due to hedging.
Increased Cost of Merchandise
Cost of merchandise sold as a percentage of net sales increased by 270 basis points to 44.8%, primarily due to higher processing levels in Canada and new stores.
Challenges in Canadian Economic Environment
Ongoing economic challenges in Canada, including elevated unemployment and inflation affecting consumer confidence.
Company Guidance
During Sabre's Value Village second-quarter conference call, the company provided updated guidance reflecting strong performance in the first half of 2025. Total net sales increased by 7.9% to $417 million, with U.S. sales growing by 10.5% and Canadian sales by 3.4%. The company reported a comparable store sales growth of 6.2% in the U.S. and 2.6% in Canada. Sabre opened four new stores and plans to open 25 new stores by the end of the year. The company achieved an adjusted EBITDA of nearly $69 million, accounting for approximately 16.5% of sales. The guidance for the full year 2025 has been raised, with net sales expected to reach between $1.67 billion and $1.69 billion, and adjusted EBITDA projected between $252 million and $267 million. Additionally, Sabre's loyalty program reached a milestone of over 6 million active members. The company emphasized ongoing investments in new store growth and operational improvements to sustain long-term growth, with a targeted store-level contribution margin of 20%.

Savers Value Village Inc. Financial Statement Overview

Summary
Savers Value Village Inc. shows strong revenue and gross profit growth. However, challenges in converting sales to net income and leverage risk from high debt-to-equity ratio warrant caution. Stable cash flow operations are a positive aspect, but focus on enhancing profitability and managing leverage is needed.
Income Statement
78
Positive
The company exhibits strong revenue growth with a consistent upward trajectory from 2020 to the TTM period. Gross profit margin is healthy, indicating effective cost control, though there is a slight decline in EBIT and net income from the previous year. The TTM net profit margin remains modest, suggesting room for improvement in bottom-line efficiency.
Balance Sheet
65
Positive
The balance sheet reflects a relatively high debt-to-equity ratio, indicating a leveraged position which could pose financial risk if not managed properly. However, the equity ratio shows improvement, signaling increased shareholder investment. Return on equity has decreased, revealing that profitability relative to equity is under pressure.
Cash Flow
70
Positive
Cash flow generation remains stable with a positive free cash flow, though growth has slowed. The operating cash flow to net income ratio suggests efficient conversion of earnings to cash, yet the free cash flow to net income ratio indicates potential challenges in sustaining cash reserves amid capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.55B1.54B1.50B1.44B1.20B834.01M
Gross Profit848.87M1.21B846.00M837.30M729.66M480.56M
EBITDA184.80M192.38M203.00M246.96M207.92M33.68M
Net Income24.77M29.03M53.12M84.72M83.39M-63.48M
Balance Sheet
Total Assets1.86B1.89B1.87B1.71B1.22B965.62M
Cash, Cash Equivalents and Short-Term Investments73.02M149.97M179.96M112.13M96.81M137.20M
Total Debt586.39M1.30B1.29B1.26B803.94M607.83M
Total Liabilities1.45B1.46B1.49B1.48B1.04B791.69M
Stockholders Equity413.81M421.68M376.06M227.34M185.43M173.93M
Cash Flow
Free Cash Flow36.53M28.40M82.77M59.26M135.22M10.74M
Operating Cash Flow140.50M134.28M175.16M169.43M175.76M29.91M
Investing Cash Flow-77.37M-80.52M-92.36M-110.50M-263.17M-19.17M
Financing Cash Flow-87.50M-76.63M-17.04M-40.22M53.00M36.81M

Savers Value Village Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.65
Price Trends
50DMA
11.39
Positive
100DMA
10.88
Positive
200DMA
10.07
Positive
Market Momentum
MACD
0.41
Positive
RSI
59.16
Neutral
STOCH
68.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SVV, the sentiment is Positive. The current price of 12.65 is above the 20-day moving average (MA) of 12.32, above the 50-day MA of 11.39, and above the 200-day MA of 10.07, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 59.16 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVV.

Savers Value Village Inc. Risk Analysis

Savers Value Village Inc. disclosed 43 risk factors in its most recent earnings report. Savers Value Village Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Savers Value Village Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
1.68B37.459.66%10.68%37.84%
73
Outperform
$1.97B61.508.06%4.47%-8.19%
73
Outperform
1.53B8.3625.43%-0.38%35.78%
63
Neutral
1.42B-11.39-114.16%-13.22%0.00%
63
Neutral
1.30B-21.21-94.46%-10.39%14.92%
61
Neutral
1.79B45.85-78.27%2.22%0.98%1.84%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SVV
Savers Value Village Inc.
12.65
2.24
21.52%
SBH
Sally Beauty
15.51
1.99
14.72%
WINA
Winmark
505.63
132.94
35.67%
JMIA
Jumia Technologies AG
11.62
6.95
148.82%
RVLV
Revolve Group
23.57
-1.91
-7.50%
TDUP
thredUP
10.53
9.64
1083.15%

Savers Value Village Inc. Corporate Events

Executive/Board Changes
Savers Value Village Appoints Brian Ames to Board
Neutral
Aug 25, 2025

On August 25, 2025, Duane C. Woods resigned from the Board of Directors of Savers Value Village, Inc., along with his positions on the Nominating, Governance & Sustainability Committee and the Compensation Committee. His resignation was not due to any disagreements with the company. Brian Ames was appointed to fill the vacancy, bringing strategic expertise and experience from consumer tech, gaming, media, climate tech, and venture capital sectors. Ames, a former Managing Director at Anthos Capital and President of Activision Blizzard Media, is recognized as an independent director under NYSE standards.

The most recent analyst rating on (SVV) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Savers Value Village Inc. stock, see the SVV Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025