Business Context and Reporting Period
Company: Savers Value Village, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: January 15, 2025
Reporting Period: Effective for the fifty-three weeks ending January 3, 2026 (Fiscal 2025).
The filing announces material changes to the Company's non-GAAP financial reporting metrics, effective for the first quarter of Fiscal 2025. These changes aim to better reflect the impact of accelerating new store growth and align with peer reporting practices.
Key Financial Metrics
This filing does not report specific revenue, profit, cash flow, or debt figures. It focuses exclusively on the methodology for calculating non-GAAP metrics. The Company states that these changes have no impact on reported GAAP net income or related per share amounts.
Material Changes Versus Prior Period
The Company is implementing three specific changes to its non-GAAP reporting definitions:
- Adjusted EBITDA: The definition is updated to include non-cash occupancy-related costs, pre-opening expenses, and store closing expenses. Previously, these items were excluded. Historical Adjusted EBITDA and margins for prior periods will be recast for comparability.
- Comparable Store Sales: The definition changes from stores operating for two consecutive fiscal years (starting their third year) to stores operating for all or a portion of 14 months. Historical comparable store sales will not be recast as the change is deemed de minimis.
- Tax Effect on Adjustments: The calculation for adjusted net income and adjusted net income per diluted share will shift from applying the overall effective tax rate to using the tax rate specifically applicable to the respective adjustments.
Guidance, Outlook, and Management Commentary
Implementation Timeline:
- Q4 Fiscal 2024 Results: To be reported in late February 2025 using the previous definitions to maintain consistency with the first three quarters of Fiscal 2024 and the previously issued full-year outlook.
- Fiscal 2025 Outlook: To be provided in late February 2025 utilizing the new definitions.
- Q1 Fiscal 2025 Results: Will utilize the new definitions starting with the first quarter Form 10-Q filing.
Supplemental Information: The Company has provided unaudited supplemental historical financial information (Exhibit 99.1) recasting historical reconciliations for the first three quarters of Fiscal 2024 and the full year of Fiscal 2023 to reflect the new Adjusted EBITDA and adjusted net income definitions.
Investor Verification Checklist
- Verify the recast historical Adjusted EBITDA figures in Exhibit 99.1 to understand the quantitative impact of including pre-opening and closing expenses.
- Monitor the late February 2025 earnings release for the Fiscal 2025 outlook, which will be the first guidance issued under the new metric definitions.
- Review the Q1 Fiscal 2025 Form 10-Q to confirm the application of the new 14-month comparable store sales definition.
- Note that GAAP net income remains unchanged by these reporting adjustments.