Company: SVV
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001883313-25-000013
Chunk: 99

Company: Savers Value Village, Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 99
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$(16,626)$12,538 (75.4)%

In fiscal year 2024, loss on extinguishment of debt of $4.1 million comprised of $0.7 million associated with the repricing of outstanding borrowings under our Term Loan Facility and $3.4 million associated with the redemption of $49.5 million aggregate principal amount of Senior Secured Notes.

In fiscal year 2023, the Company used net proceeds from its IPO, net proceeds from issuing $550.0 million aggregate principal amount of Senior Secured Notes and cash on hand to repay $485.8 million in outstanding borrowings on its Term Loan Facility and $55.0 million aggregate principal amount of its Senior Secured Notes, resulting in a loss on extinguishment of debt of $16.6 million. 

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Income tax expense (benefit)

The following table presents income tax expense (benefit):

Fiscal Year(in thousands)20242023$ Change% ChangeIncome tax expense (benefit) $20,404 $(6,036)$26,440 n/m

n/m - not meaningful

During fiscal year 2024, the Company recorded income tax expense of $20.4 million on income before income taxes of $49.4 million, resulting in an effective tax rate of 41.3%. During fiscal year 2023, the Company recorded an income tax benefit of $6.0 million on income before income taxes of $47.1 million, resulting in an effective tax rate of (12.8)%. The increase in our effective tax rate resulted primarily from the internal legal entity restructuring that occurred during fiscal year 2023 as discussed in Note 15. Income Taxes, and an increase to the valuation allowance. 

Segment results

The following table presents net sales and profit by segment:

Fiscal Year(in thousands)20242023$ Change% ChangeNet sales:U.S. Retail$832,581 $780,126 $52,455 6.7 %Canada Retail586,971 605,630 (18,659)(3.1)%Total segment sales$1,419,552 $1,385,756 $33,796 2.4 %Segment profit:U.S. Retail$187,233 $198,146 $(10,913)(5.5)%Canada Retail$165,136 $189,899 $(24,763)(13.0)%

U.S. Retail