Savers Value Village (NYSE:SVV) saw its shares climb Friday on the heels of an earnings beat. The company notched adjusted earnings per share of 22 cents on $379 million in revenue, while FactSet had forecast 17 cents and $375 million.
Sales increased 4% to $379.1M during the quarter, and comparable sales were up 5.5%. Adjusted EBITDA rose 4.7% to $89.3M and the EPS mark of $0.22 was ahead of the $0.17 consensus mark. The thrift store retailer opened one new unit during the quarter to end with a store count of 318.
"At a time when consumers are seeking value and thinking more about sustainability, the popularity of thrifting continues to grow," noted CEO Mark Walsh. "We continue to leverage our proven business model and execute against our strategic initiatives to enhance our competitive position and drive profitable growth," he added.
Looking ahead, the retailer plans to open 12 new stores in FY23 and generate sales of $1.51B. Adjusted EBITDA of approximately $320M is anticipated.
Following the report, Jefferies reiterated its Buy rating on SVV. Analyst Randal Konik said the firm believes SVV's core focus on ESG, significant new unit expansion opportunity, growing brand awareness, and strong customer loyalty base all position the company well for share gains in what is seen as a large, growing, and unique secondhand retail market.
SVV gained 62 cents, or 2.6%, in the first hour of trade Friday to $24.22.
