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Here are 1-3 brief analogies to describe Savers Value Village (SVV):

• The for-profit Goodwill.
• A Carvana for used clothing and household items, sold in physical stores.
• Like a Ross or TJ Maxx, but for secondhand goods.

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• Used Apparel & Accessories: Retailing a wide selection of pre-owned clothing, footwear, and fashion accessories.
• Used Household Goods: Offering an assortment of second-hand home decor, kitchenware, furniture, and other domestic items.
• Used Books & Media: Providing a collection of previously owned books, DVDs, CDs, and other entertainment media.

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Savers Value Village (symbol: SVV) primarily sells to **individuals** through its network of thrift stores.

The up to three major categories of customers it serves are:

1. Budget-Conscious Consumers: Individuals and families seeking affordable clothing, household goods, and other necessities to manage their budgets effectively. This category is driven by the need for value and lower prices.
2. Eco-Conscious Consumers and Sustainable Shoppers: Individuals who prioritize sustainability and environmental responsibility. They shop at Savers to reduce waste, extend the life cycle of products, and participate in the circular economy, thereby minimizing their environmental footprint.
3. Value Seekers and Treasure Hunters: This group includes those looking for unique, vintage, collectible, or one-of-a-kind items that are often unavailable in conventional retail stores. They enjoy the discovery aspect of thrifting, whether for fashion, home decor, or specific interests.

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1. Financial Vulnerabilities and High Leverage

Savers Value Village carries a high level of leverage, evidenced by a debt-to-equity ratio of 3.13. The company's Altman Z-Score of 1.6 further indicates potential financial distress, suggesting a possibility of bankruptcy within the next two years. Recent financial performance has also shown signs of strain, including a net loss in a recent quarter, primarily due to increased operating expenses and a competitive retail environment. Furthermore, tight free cash flow may hinder the company's ability to reduce its debt.

2. Intense Competition and Market Saturation

The company operates in a highly competitive retail landscape, facing pressure from both traditional brick-and-mortar retailers and a growing number of online platforms specializing in secondhand goods. The increasing prevalence of e-commerce and digital thrift platforms poses a threat to SVV's market share if the company does not effectively adapt to evolving consumer preferences. This market saturation can lead to pricing pressures and reduced profitability.

3. Dependence on Supply from Local Charities

SVV's business model is fundamentally reliant on obtaining second-hand goods from local charities. The ability to secure a sufficient volume of quality merchandise at attractive prices is crucial for its profitability. Should the company encounter challenges in achieving favorable pricing or consistent supply from its non-profit partners, its financial performance could be adversely affected.

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The proliferation and increasing market share of online resale marketplaces and professional consignment services represent a clear emerging threat. These digital platforms, including companies like ThredUp, Poshmark, Depop, The RealReal, as well as broader marketplaces such as eBay and Facebook Marketplace, offer consumers a more convenient, searchable, and often curated experience for buying and selling used goods. This directly challenges Savers Value Village's physical retail model, which relies on in-store browsing and serendipitous discovery. Furthermore, the growing trend of major brands and retailers launching their own take-back and resale programs competes for the supply of higher-value items that might otherwise enter the traditional thrift market.

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Savers Value Village (SVV) operates as a for-profit thrift retailer, primarily offering second-hand clothing and household goods. The addressable markets for their main products and services are significant, particularly in the United States and globally.

United States Market

• Overall Secondhand Market: The U.S. secondhand market is estimated to be worth approximately $56 billion as of 2025, with projections indicating growth to $61 billion in 2026 and $74 billion by 2029. This broader market includes both traditional thrift and resale segments.
• Secondhand Apparel Market: In 2023, the U.S. secondhand apparel market reached $43 billion. It is projected to grow to $73 billion by 2028, with an average annual growth rate of 11%. Other estimates suggest it could reach $74 billion by 2029.
• Secondhand Homeware/Furniture Market: The U.S. second-hand homeware market was valued at $8.7 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2025 to 2034. The U.S. second-hand furniture market specifically is projected to grow at a CAGR of 6.8% from 2024 to 2030.

Global Market

• Secondhand Apparel Market: The global secondhand apparel market is on a significant growth trajectory, with projections estimating it will reach $367 billion by 2029, growing at a CAGR of 10%. Another forecast indicates a market size of $350 billion by 2028.
• Secondhand Homeware Market: The global second-hand homeware market was estimated at $29.9 billion in 2024. It is projected to grow from $31.5 billion in 2025 to $53.9 billion by 2035, at a CAGR of 5.5%.

USA & Canada Market

• Secondhand Apparel Market: The secondhand apparel market in the USA & Canada is valued at $24.8 billion in 2025 and is expected to reach $83.3 billion by 2035, with a CAGR of 12.9% during this period.

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Savers Value Village (SVV) is expected to drive future revenue growth over the next 2-3 years through a combination of strategic initiatives and favorable market trends. Key drivers include:

1. New Store Expansion: The company plans significant organic growth by opening new stores across its markets. Savers Value Village aims to open at least 25 new stores per year for the period 2025-2027, with roughly 60% of new store openings in 2025 anticipated in the U.S.. This expansion is expected to be a primary driver of high single-digit total annual sales growth over the long term, with a focus on high-growth markets, particularly in the southeastern U.S..
2. Comparable Store Sales Growth: Savers Value Village is focused on increasing sales at its existing locations. The company anticipates comparable store sales growth of 4.0% to 4.5% for the full year 2025. This growth is expected to be driven by improved shopping experiences, quality product offerings, and enhanced loyalty program engagement.
3. Strategic Acquisitions: Inorganic growth through mergers and acquisitions is another component of SVV's strategy. Acquisitions, such as the 2022 purchase of Unique Thrift Stores which added 30 locations and an estimated $40 million in annual revenue, contribute to the company's expanding footprint and revenue base. The acquisition of 2 Peaches Group, LLC in fiscal year 2024, which marked the company's entry into the Georgia market, is an example of leveraging acquisitions for expansion.
4. Increasing Popularity of the Second-Hand Market: The broader retail environment shows a strong and growing consumer preference for sustainable and value-oriented shopping. The resale market is projected to grow from $28 billion in 2022 to $64 billion by 2028, and the U.S. second-hand apparel market is forecast to reach $73 billion by 2028, growing at an average annual rate of 11.2% from 2023-2028. This market trend, including the increasing popularity of thrifting among younger demographics, provides a significant tailwind for Savers Value Village's business model.
5. Operational Efficiency and Customer Experience Enhancements: By improving operational efficiency and the overall customer experience, SVV aims to boost profitability and drive sales. Initiatives include optimizing cost management, enhancing supply quality through increased on-site donations and GreenDrop locations, and strengthening customer loyalty through engagement programs. These improvements are intended to support margin expansion and sustainable growth.

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Share Repurchases

• Savers Value Village authorized a share repurchase program of up to $50 million on October 30, 2025, set to expire on November 8, 2027.
• The company repurchased approximately 1.1 million shares during the fourth quarter of 2024 at a weighted average price of $9.67 per share. As of the end of Q4 2024, approximately $18.1 million remained under its share repurchase program.
• In May 2025, Savers Value Village conducted a concurrent share repurchase of 2,258,132 shares, investing $20 million from its existing cash reserves. This repurchase was executed as part of a secondary offering by selling stockholders and was separate from the company's existing repurchase program.

Share Issuance

• In June 2023, Savers Value Village completed its initial public offering (IPO), issuing 18,750,000 shares at a price of $18.00 per share, which generated $337.5 million in gross proceeds for the company.
• The net primary proceeds from the IPO were intended to be used by the company to repay indebtedness.

Inbound Investments

• The company received $337.5 million in gross proceeds from its initial public offering in June 2023 through the issuance of 18,750,000 shares to public investors.
• Prior to the IPO in June 2023, Ares Management Corporation held a majority stake in Savers Value Village.

Outbound Investments

• In May 2024, Savers Value Village acquired "2 Peaches," a thrift store chain comprising seven locations in Georgia.
• This acquisition contributed to the company's target of opening 29 new stores in 2024.

Capital Expenditures

• Capital expenditures for fiscal year 2024 were projected to be approximately $105 million to $115 million.
• For fiscal year 2025, management guided for capital expenditures ranging from $125 million to $140 million.
• The primary focus of these capital expenditures is on new store openings (with 25 to 30 planned for 2025), store renovations, and technology upgrades.