Savers Value Village Inc. (SVV) stock plummeted 7.82% in pre-market trading on Friday, following the company's fourth-quarter earnings report and outlook for 2025 that failed to meet market expectations.
The thrift retailer reported a solid fourth quarter with revenue growth of 5% year-over-year, driven by strong performance in the US market. However, the company's guidance for 2025 painted a more cautious picture, citing headwinds from new store investments and a weaker Canadian dollar.
While Savers Value Village plans to open 25 to 30 new stores in 2025, these new locations are expected to weigh on adjusted EBITDA by approximately $10 million due to their initial operating losses. Additionally, the company expects a $6.5 million hit to EBITDA from the weaker Canadian dollar, which is currently trading near a multi-decade low against the US dollar.
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