Savers Value Village (SVV) risk factors, FY2024 10-K

Risks Relating to Our Business and Industry

1. 01If we fail to obtain a sufficient quantity of new and recurring quality secondhand items at attractive prices, our business, results of operations and financial condition could be harmed
2. 02We are subject to various risks to our physical store and processing facility locations, including with respect to the sourcing, processing, storage and other logistics of secondhand items
3. 03Our business depends on our ability to attract and retain suitable workers for our stores and processing facilities and to manage labor costs, particularly given recent disruptions in the supply and cost of labor
4. 04Both supply of and demand for our products is influenced by general economic conditions, including trends in consumer spending
5. 05Our growth has placed, and may continue to place, significant demands on our management and our operational and financial resources. Our organizational structure is complex, reflecting our multi-tiered operational, financial and management controls as well as our reporting systems and procedures
6. 06In future periods, we may not be able to sustain or increase net sales growth rates consistent with recent history, or at all. We believe our success and revenue growth depends on a number of factors, including, but not limited to, many of the risks discussed in this section
7. 07We lease all of our locations and must identify, obtain and retain suitable locations for our stores and processing facilities to achieve our planned growth
8. 08Our continued growth depends on attracting new, and retaining existing, customers, including by increasing the acceptance of thrift among new and growing customer demographics, and effective advertising
9. 09We have significant foreign operations, particularly in Canada, that subject us to additional operating risks and certain exchange rate risks, which we may not be able to fully hedge
10. 10Natural disasters, pandemics, geo-political events and other highly disruptive events can have an unpredictable and adverse impact on our business, results of operations and financial condition
11. 11If we are unable to extend our exclusive rights with the provider of our CPC and ABP technologies, and otherwise successfully leverage technology to automate and drive efficiencies, our business, results of operations and financial condition could be harmed
12. 12Labor-related matters, including labor disputes, may adversely affect our operations
13. 13Acquisitions could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value and adversely affect our results of operations and expansion prospects
14. 14Disruptions in the wholesale markets due to market conditions, conditions in the countries where our wholesale goods are sold or other factors may adversely affect our business
15. 15We may not succeed in promoting and maintaining our reputation, and our business could be negatively impacted by a failure, or perceived failure, to live up to our sustainability and corporate citizenship commitments
16. 16The market in which we participate is competitive and rapidly changing, and if we do not compete effectively with established companies as well as new market entrants or maintain and develop strategic relationships with NPPs, our business, results of operations and financial condition could be harmed

Risks Relating to Information Technology, Intellectual Property, Data Security and Privacy

1. 17Compromises of our data security, including cyberattacks or data breaches, could cause us to incur unexpected expenses and may materially harm our reputation and results of operations
2. 18Our use and other processing of personal information and other data is subject to laws and regulations. Changes in such laws or regulations or any actual or perceived compliance failures could adversely affect our business, results of operations and financial condition
3. 19We may be unable to protect our intellectual property rights, and we may be accused of infringing on the intellectual property or other proprietary rights of third parties
4. 20We rely on software, technology and services from other parties. Defects in or the loss of access to software or services from third parties could increase our costs and adversely affect the quality of our products

Risks Relating to Legal, Regulatory, Accounting and Tax Matters

1. 21Risks arising from the material weakness we have identified in our internal control over financial reporting and any failure to remediate the material weakness
2. 22As a public company, we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) the Sarbanes-Oxley Act, and, the rules and regulations and the listing standards of the NYSE
3. 23Our failure to address risks associated with payment methods, credit card fraud and other consumer fraud, or our failure to control any such fraud, could damage our reputation and brands and could harm our business, results of operations and financial condition
4. 24We and our directors and executive officers may be subject to litigation for a variety of claims, which could harm our reputation and adversely affect our business, results of operations and financial condition
5. 25Subjective estimates and judgments used by management in the preparation of our financial statements, including estimates and judgments that may be required by new or changed accounting standards, may impact our financial condition and results of operations
6. 26Tax legislation could adversely affect our business, financial condition and results of operations
7. 27Our ability to utilize our net operating loss carryforwards and certain other tax attributes to offset taxable income or taxes may be limited
8. 28We are subject to various anti-corruption and export laws and regulations, violations of which could have a material adverse effect on our business, financial condition and results of operations

Risks Relating to Our Indebtedness and Liquidity

1. 29The amount of our indebtedness and its rating could materially adversely affect our financial condition
2. 30We may not be able to generate sufficient cash to service all of our indebtedness or repay such indebtedness when due and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
3. 31The terms of the Senior Secured Credit Facilities and the Indenture restrict our current and future operations, including our ability to respond to changes or to take certain actions
4. 32A future increase in interest rates may increase our borrowing costs. We rely on available borrowings under the Revolving Credit Facility for liquidity

Risks Relating to Ownership of Our Common Stock

1. 33The stock price of our common stock may be volatile or may decline regardless of our operating performance
2. 34We currently do not intend to pay dividends on our common stock, our indebtedness could limit our ability to pay dividends on our common stock and we cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term shareholder value
3. 35Future issuances or sales of our common stock could cause our stock price to decline, result in significant dilution to our stockholders or dilute the voting power of our common stock

Risks Relating to Our Organizational Structure

1. 36Our reliance on dividends, distributions and other payments from our subsidiaries to meet our obligations
2. 37The Ares Funds continue to control our Company, including having the right to designate nominees for election to our board of directors, and may have interests that conflict with our interests and those of other stockholders
3. 38Our status as a “Controlled Company” within the meaning of the NYSE rules exempts us from certain corporate governance requirements
4. 39Certain provisions in our certificate of incorporation and our bylaws may delay or prevent a change of control
5. 40Our certificate of incorporation contains a provision renouncing our interest and expectancy in certain corporate opportunities

General Risks

1. 41We depend on our executive officers and other key technical, operational and sales employees, and the loss of one or more of these employees or an inability to attract and retain other highly skilled employees could harm our business
2. 42The requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain executive management and qualified board members