1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
SVV
Event Date
2023-06-29
Sector
Consumer
Subsector
Specialty Retail
Offer Range
$18.00
Shares Offered
22.29M
Shares Outstanding Pre-IPO
141.74M
160.45M
$3.0B
13.9%
Implied Upside vs Midpoint
Description
Our mission To champion reuse and inspire a future where secondhand is second nature. From the thrill of the hunt to the joy of decluttering, we help communities harness the power of pre-loved stuff to keep reusable items around for years to come. We are the largest for-profit thrift operator in the United States and Canada based on number of stores. With over 22,000 team members, we operate a total of 317 stores under the Savers, Value Village, Village des Valeurs, Unique and 2nd Ave. banners. We are committed to redefining secondhand shopping by providing one-of-a-kind, low-priced merchandise ranging from quality clothing to home goods in an exciting treasure-hunt shopping environment. We purchase secondhand textiles (e.g., clothing, bedding and bath items), shoes, accessories, housewares, books and other goods from our non-profit partners (“NPPs”), either directly from them or via on-site donations (“OSDs”) at Community Donation Centers at our stores as well as through GreenDrop locations. We then process, select, price, merchandise and sell these items in our stores. Items that are not sold to our retail customers are marketed to wholesale customers, who reuse or repurpose the items they purchase from us. We believe our hyper-local and socially responsible procurement model, industry-leading and innovative operations, differentiated value proposition and deep relationships with our customers distinguish us from other secondhand and value-based retailers. We offer a dynamic, ever-changing selection of items, with an average unit retail (“AUR”) price under $5. We have a highly engaged customer base, with over 4.7 million active loyalty program members in the United States and Canada who shopped with us as of April 1, 2023, driving 69.6% of point-of-sale transaction value during the twelve months ended April 1, 2023. Our business model is rooted in environmental, social and corporate governance (“ESG”) principles, with a mission to positively impact our stakeholders—thrifters, NPPs and their donors, our team members and our stockholders. As a leader and pioneer of the for-profit thrift category, we seek to positively impact the environment by reducing waste and extending the life of reusable goods. The vast majority of the clothing and textiles we source are sold to our retail or wholesale customers. During fiscal year 2022 and the three months ended April 1, 2023, we processed 985 million and 240 million pounds of secondhand goods, respectively. The U.S. secondhand market, which is a subset of the broader retail market, reached approximately $35 billion in 2021 and is expected to grow to more than $82 billion by 2026. Thrift accounted for approximately 60% of the total secondhand market in 2021, and we believe we benefit from the powerful secular trends driving growth in the sector. We also believe consumers are increasingly concerned about the environmental impact of the clothes they wear. As of June 2022, more than one in three U.S. shoppers and nearly half of Canadian shoppers surveyed reported caring more about the environmental impact of their apparel choices today than they did three years ago. There is a growing awareness that the textile and clothing industry is one of the most environmentally damaging sectors of the economy. Meanwhile, discarded clothing remains the largest source of textile waste in the world, with the average U.S. citizen throwing away 81 pounds of clothing each year, 95% of which could have been re-worn or repurposed; yet 85% of this material ends up in landfills. To put this another way, the Ellen MacArthur Foundation (the “EMF”) reports that one garbage truck of textiles is landfilled or incinerated every second. Thrift as a business model provides one of the most effective solutions in mitigating the environmental cost of clothing and extending its life. --- S-Evergreen Holding LLC was formed March 22, 2019. S-Evergreen Holding LLC became a Delaware corporation on January 7, 2022 and changed its name to Savers Value Village, Inc. in the Corporate Conversion. Our principal executive offices are located at 11400 S.E. 6th Street, Suite 125, Bellevue, WA 98004, and our telephone number is 425-462-1515. Our website address is www.savers.com.