Savers Value Village, Inc. (SVV) saw its stock surge 5.15% in after-hours trading following the release of its first-quarter financial results. The thrift store operator's performance exceeded expectations in some areas while falling short in others, but investors appeared to focus on the positives.
The company reported Q1 sales of $370.145 million, surpassing the IBES estimate of $366.2 million. This strong top-line performance likely contributed to investor optimism. However, Savers Value Village's bottom line faced some challenges. The company posted a net loss of $4.723 million, with earnings per share (EPS) coming in at -$0.03, missing the IBES estimate of $0. Operating income also fell short at $10.403 million, compared to the expected $17.2 million.
Despite these mixed results, Savers Value Village reaffirmed its outlook for 2025, which seems to have reassured investors about the company's long-term prospects. The market's positive reaction suggests that investors are focusing on the company's sales growth and maintaining confidence in its future performance. As the after-hours surge demonstrates, the market is weighing the strong sales figures and maintained guidance more heavily than the earnings miss, indicating a belief in the company's potential for improvement in the coming quarters.