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Posted by
Two Blokes May 7 -
Filed in
Stock
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3 views
I maintain a hold rating for Savers Value Village due to ongoing margin pressures, inventory risks, and a stretched valuation despite positive SSS growth. 1Q25 earnings showed 4.5% sales growth, driven by 2.8% SSS growth, but margins deteriorated significantly due to expansion costs and rising operating expenses. Margins face further downside from aggressive store openings and elevated operating expenses, with inventory growth outpacing sales, posing additional risks.
