SVV

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET Chief Executive Officer - Mark Walsh President and Chief Operating Officer - Jubran Tanious Chief Financial Officer - Michael Maher Vice President of Investor Relations and Treasury - Ed Yruma Operator: Good afternoon, welcome to Savers Value Village's conference call to discuss financial results from the second quarter ending July 4, 2026. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Introductions will follow at that time. Please note that this call is being recorded. A replay of this call and related materials will be available on the company's investor relations website. The comments made during the call and the Q&A that follows are copyrighted by the company and cannot be reproduced without written authorization from the company. Certain comments made during this call may constitute forward-looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from expectations or historical performance. Please review the disclosure on forward-looking statements included in the company's earnings release and filings with the SEC for a discussion of these risks and uncertainties. Please be advised that statements are current only as of the date of this call. While the company may choose to update these statements in the future, it is under no obligation to do so unless required by applicable law or regulation. The company may also discuss certain non-GAAP financial measures. A reconciliation of each of the historical non-GAAP measures to the most directly comparable GAAP financial measure can be found in today's earnings release and SEC filings. Joining from management on today's call are Mark Walsh, Chief Executive Officer, Jubran Tanious, President and Chief Operating Officer, Michael Maher, Chief Financial Officer, Ed Yruma, Vice President of Investor Relations and Treasury. Mr. Walsh, you may go ahead, sir. Mark Walsh: Thank you. Good afternoon, everyone. We appreciate you joining us today. Our second quarter results reinforce our confidence in the power of the model as we continued our earnings inflection with a third consecutive quarter of year-over-year adjusted EBITDA growth. U.S. comp growth remains broad-based, profits increased in both major markets. New store profitability has started to ramp ahead of our original expectations. Together with ThriftIQ and our broader productivity agenda, this gives us a sustained path back toward high teens adjusted EBITDA margins. Let me start with a few highlights from the quarter. Sales at our U.S. business grew 11.6%, with comps up 6.6%, driven by both average basket and transactions. Secular adoption of thrift remains strong. Our comp continues to be broad-based across categories, regions, and demographics. In Canada, comps increased 0.8% during the quarter, reflecting a roughly 70 basis point benefit from the Easter shift. Despite the limited top-line growth, we grew Canadian segment profit almost 16% and expanded segment profit margin by 330 basis points, once again showing the impact of our productivity and profit improvement initiatives. Financially, adjusted EBITDA increased 8% to $75 million or 16.6% of sales. Finally, we are updating our outlook for 2026, which Michael will address as part of his remarks. Turning to new stores, we opened four locations in the U.S. and two in Canada during the quarter, including our recent North Carolina opening that delivered the highest opening week sales in company history. This performance in a new market underpins our confidence that our model is durable and scalable across regions. We are also seeing new store profitability ramp ahead of our original expectations, supported in part by ThriftIQ, our proprietary data-driven platform that supports grading and pricing consistency, enhancing our customer value proposition. We are eager to continue growing our store fleet in the U.S. and believe we can expand at the current pace for years to come. For 2026, our plan remains to open around 25 new stores, more than 20 of which will be in the U.S. in 11 states with a nice mix of infill and new markets, including our first location in Tennessee opening later this year. Repeating a theme, our new store growth remains the highest return and the most important use of our capital. We are excited to bring our value offering to more consumers. Today, we also announced ThriftIQ, our next major innovation initiative designed to bring greater precision and consistency to pricing across our men's and women's apparel assortment. Because we process millions of unique items each week, we have built a proprietary data set across brands, categories, price points, and sell-through outcomes that would be difficult for another retailer to replicate. ThriftIQ uses that data to provide more consistent pricing recommendations while preserving compelling customer value. We built ThriftIQ with three core objectives in mind. Number one, improve our consumer value proposition with more precise and consistent pricing. Second, deploy our proprietary data set across the store network. Finally, improve financial outcomes through stronger sales yields, larger baskets, simpler store processes, and faster new store profitability ramps. We have conducted an intensive two-year test to learn process with ThriftIQ and have used it to price over 25 million items spanning 45,000 brands. The platform is already operational in 58 existing stores, including most new store openings over the last six months. ThriftIQ delivered improvements in sales yield and gross profit in our pilot stores with average prices that are the same or lower than the rest of the fleet, and continuing to average 40%-70% off traditional retail. We believe ThriftIQ and our broader innovation efforts will be meaningful contributors as we progress toward our long-term high teens adjusted EBITDA margin target. Michael will discuss the pilot results and the financial implications in more detail. I've been busy touring our stores and CPCs, and the enthusiasm from our team members is palpable. The data-driven process simplifies workflows, enables greater cross-training, and helps us deliver compelling value more consistently across the assortment. In fact, store managers have reiterated that ThriftIQ is delivering value that is resonating with our consumers. Given the transformational nature of the platform, we will move deliberately and with rigor to ensure a successful change management. We are also excited to announce our Savers Innovation Day in early November, where you can get a hands-on look at ThriftIQ and our other initiatives. We are reinventing thrift again. I would like to now thank our nearly 24,000 team members for their role in driving strong results in the first half of 2026 and keeping our momentum going into the back half of the year. Our mission to make secondhand second nature continues to gain traction, the progress we're making each day to expand our reach to bring an exciting thrift shopping experience to more customers is invigorating. We are well-positioned to capitalize on the opportunity ahead and drive long-term value for our customers, nonprofit partners, and shareholders. I'll now hand the call over to Michael to discuss our second quarter financial performance and the updated outlook for the remainder of 2026. Michael Maher: Thank you, Mark, and good afternoon, everyone. Before reviewing the quarter, I want to provide additional detail on the ThriftIQ pilot results and financial implications. As Mark noted, this platform allows us to be more precise and consistent in delivering great value to our customers. ThriftIQ is currently live in 58 stores across the U.S. and Canada. In these stores, we've seen customers respond positively through increased unit sell-through, larger baskets, and stronger sales yields with the same or lower average prices compared to the rest of our fleet. That translated into gross profit dollar growth that was approximately 100 basis points higher in our pilot stores than in our non-pilot stores. ThriftIQ is also helping our new stores ramp to profitability faster with better data-driven pricing out of the gate and simpler operational processes. For example, we're able to reduce training time for new graders by approximately half. Thanks in part to ThriftIQ, more than half of our 2025 class of new stores generated positive four-wall contribution in the second quarter, which is ahead of previous new store classes. We expect to provide additional detail on the new store maturation model at a future date. The early ThriftIQ results, continued maturation of the new store fleet, and other profit improvement initiatives increase our confidence in the path to our long-term profitability goals. We expect these initiatives collectively to support 50-100 basis points of annual adjusted EBITDA margin expansion beginning in 2027 and a return to high teens margins within the next three years. We expect the financial contribution of ThriftIQ to build as deployment scales. We look forward to sharing more details at our Savers Innovation Day in November. Turning our attention back to second quarter results, total net sales increased 7.4% to $448 million. On a constant currency basis, net sales increased 7.1%, and comparable store sales increased 4.4%. The favorable impact of foreign exchange rates was 170 basis points lower than in Q1. We are especially pleased with our sales results in the U.S., where net sales increased 11.6% to $255 million. Comparable store sales increased 6.6%, fueled by both average basket and transactions with broad-based growth across regions, categories, and income cohorts. Younger and more affluent consumer cohorts are still our fastest-growing demos, which speaks to the power of our model and its ability to resonate with all shoppers. As a reminder, the majority of our comp base is made up of largely mature stores with little benefit from our recent new store openings. As new stores enter the comp base, they will provide an additional tailwind to our comp growth. Given the breadth of our comp strength and compelling new store performance, we remain very confident in our ability to grow and scale the U.S. business. We also saw continued stability in Canada, where net sales and constant currency net sales both increased 2.2% to $158 million, and comparable store sales increased 0.8%, reflecting a 70-basis-point benefit from the Easter holiday shift. Despite limited top-line growth, we were still able to grow profits and expand segment margin by 330 basis points, which we attribute to tight production management, off-site processing improvements, and the continued maturation of our new stores. We believe this profit performance is durable, and with the addition of ThriftIQ, we are confident in our ability to drive future incremental profit growth. As it relates to the macro environment, conditions remain stable but sluggish. We do not expect a material change in Canadian economic conditions in the near term and continue to plan our business around a roughly flat comp. Cost of merchandise sold as a percentage of net sales decreased 170 basis points to 43.1% due to comp leverage and efficiency initiatives, as well as growth in on-site donations, partially offset by the impact of new store openings. Salaries, wages, and benefits expense was $85 million. Excluding IPO-related stock-based compensation, salaries, wages, and benefits as a percentage of net sales increased 100 basis points to 19.7%. The increase was driven primarily by new store growth, an increase in annual incentive plan expense, and higher non-IPO-related stock-based compensation expense. Selling, general, and administrative expenses increased 15% to $102 million, and as a percentage of net sales increased 150 basis points to 22.7%. SG&A included a $2 million impairment charge, primarily related to the consolidation of one of our Canadian warehouse processing facilities, which was enabled by our continued efficiency improvements in off-site processing. SG&A also included $1 million of transaction costs related to the recent repricing of our term loan. Excluding these charges, SG&A increased 11%, primarily due to growth in our store base. Depreciation and amortization increased 22% to $25 million, reflecting continued investments in new stores, off-site processing, and information technology, as well as capital maintenance expenditures. Net interest expense decreased 19% to $13 million, primarily due to the impact of our debt refinancing last fall. Between that refinancing and our more recent repricing, we have reduced interest expense by approximately $20 million on an annualized basis over the last year. GAAP net income for the quarter was $22 million, or $0.14 per diluted share. Adjusted net income was also $22 million, or $0.14 per diluted share. Second quarter adjusted EBITDA was $75 million and adjusted EBITDA margin was 16.6%. U.S. segment profit was $59 million, an increase of $10 million, primarily due to increased profit from our comparable stores and the continued maturation of new stores. Canada segment profit was $46 million, up $6 million due to increased operating efficiency driven by our profit improvement initiatives. Our new stores continue to perform in line with our expectations on the top line, and as previously mentioned, we are seeing their profitability ramp ahead of our original expectations. Our balance sheet remains strong, with $92 million in cash and cash equivalents and a net leverage ratio of 2.4x at the end of the quarter. We also repurchased 1.2 million shares at a weighted average price of $8.10. Our capital allocation strategy remains unchanged as we prioritize organically funding new store growth, repaying debt as we target a net leverage ratio under two times by the end of next year, and opportunistically repurchasing shares. I'd like to now turn to our guidance and discuss our updated outlook for the remainder of fiscal 2026. Our updated outlook reflects our first half performance and continued adjusted EBITDA growth in the second half. The costs and benefits of a phased ThriftIQ rollout are also incorporated, with a financial contribution from ThriftIQ expected to build as deployment scales. We now expect net sales of $1.77 billion-$1.79 billion. Comparable store sales growth of 3%-4%, net income of $67 million-$76 million, or $0.42-$0.47 per diluted share, adjusted net income of $76 million-$85 million, or $0.47-$0.53 per diluted share, adjusted EBITDA of $265 million-$275 million. Capital expenditures of $125 million-$145 million, with approximately 25 new store openings. Net interest expense of approximately $48 million and an effective tax rate of approximately 28%. For adjusted net income, we are assuming an effective tax rate of approximately 27%. We are projecting weighted average diluted shares outstanding to be approximately 160 million for the full year. This does not contemplate any potential future share repurchases. Finally, I'd like to briefly touch on our expectations for the third quarter. We expect total revenue growth between Q1 and Q2 levels, with comp sales growth moderating slightly as we begin to lap stronger comparisons. We expect adjusted EBITDA to be modestly below Q2, driven principally by a shift in timing of new store openings and associated pre-opening expenses between Q2 and Q3. We plan to open eight new stores during the quarter, reaching the midpoint of our full-year target in August. This concludes our prepared remarks. We would now like to open the call for questions. Operator? Operator: We will now begin our question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the roster. Your first question comes from the line of Brooke Roach with Goldman Sachs. Your line is open. Please go ahead. Brooke Roach: Good afternoon. Thank you. Michael Maher: Hey, Brooke. Brooke Roach: For taking our question. I was hoping that we could unpack. The drivers of the return to the high teens EBITDA margin that you outlined on the call. Can you talk a little bit more about the assumptions that underpin that? How to think about the contribution from ThriftIQ over that three-year period, and the ThriftIQ contribution each year within the 50-100 basis point plan, and any other particulars that we should be thinking about with regards to phasing as you look to return to that EBITDA margin rate? Thank you. Michael Maher: Thanks, Brooke. It's Michael. Certainly, you got the components there. It's a combination of our innovation agenda, which ThriftIQ is a significant piece, obviously, as well as our new store ramp and just our ongoing comp margin leverage and other profit improvement initiatives. I expect it's going to be a healthy contribution and balance of contribution from all three of those things. There's frankly a little bit of overlap, too. For example, the innovation contribution to new stores is part of that. As we think about the 50-100 basis points per year, as I mentioned in my remarks, the contribution from ThriftIQ is going to build as the deployment scales. As you think about us rolling that out back half of this year, all the way through 2027 and into early 2028, I would expect to see full annualization come in 2028 and beyond. I would think about probably expecting us to be at the lower end of that 50-100 basis point range in 2027, then building toward the higher end of that range in the subsequent years. Brooke Roach: Great. Mark, maybe we can talk a little bit more about the benefits to ThriftIQ and what it means for your customer base. You spoke a little bit about some of these engagement metrics that you were seeing within the test stores. What does that mean for traffic, customer repeat rate, basket size conversion, and net? As you think about that 100 basis point higher gross profit dollar growth, how much of that is coming from better sales momentum, and how much of that is coming from better COGS efficiencies? Mark Walsh: Thanks, Brooke. Look, I think let's start with a little context on why we got to ThriftIQ and how do we get there. It's really born from an opportunity. We've accumulated one of the largest data sets in secondhand retail, processing more than a billion pounds of goods annually. ThriftIQ, over the last almost two years, has helped us price more than 25 million items, and most importantly, evaluate the sell-through of those 25 million items. That will likely double to 50 million by year-end, over 45,000 brands. The objective very clearly for us as we started this process was to improve the customer value proposition, full stop, by making prices more precise, consistent, and predictable, removing a lot of the subjective nature of our grading process to an objective approach. As we talked about on the prepared remarks, in our pilot stores, the average prices have been the same or lower than the rest of the fleet, and that's still continuing to average that very important band that we try to operate in between 40% and 70% below traditional retail. The result that we've seen in our pilot stores is it's producing better outcomes across a number of metrics. Higher unit sell-through, larger baskets, stronger sales yields, and we've talked about the faster new store ramps, very important as well. Ultimately, it's driving improved profitability. Brooke Roach: Great. Thanks so much. I'll pass it on. Operator: Your next question comes from the line of Matthew Boss with JPMorgan. Your line is open. Please go ahead. Matthew Boss: Great. Thanks, and nice quarter. Michael Maher: Thanks, Matt. Matthew Boss: Mark, with seven consecutive quarters now of mid-single digit same-store sales in the U.S., can you speak to new customer acquisition, trends from your existing cohorts, and any market share metrics that speak to the acceleration or the inflection, and just any constraints to sustaining mid-single digit comps in the back half of the year in your view? Mark Walsh: Thanks, Matt. Let me start with the new customer trends. We continue to see robust new customer interaction, and we are very focused, obviously, on driving those individuals into our loyalty program. Big stickiness factor for us, and obviously we can track those customers on a consistent basis. I would say the most interesting and most exciting thing. Look, we're still seeing that younger cohort grow disproportionately to the rest of the age cohorts in our traffic and in our customer base. What's really exciting for us, and I think it speaks to the universal appeal of how we're delivering value and merchandise, is the fact that both at the high and the low end, we're seeing growth. Our high household income customers and our low household income customers are outpacing growth of the other household incomes in the middle. Sort of a sandwich effect. You think about that dynamic, it's really wonderful from a universal appeal perspective. We're bringing in high household income, low household income, getting in the shop, creating stickiness, having them sign up to the loyalty database. We're continuing to see that frequency improve. Net-net, I think that's a lot to do with why we've seen the consistent pattern over the last couple of quarters, as you mentioned. Michael Maher: Hey, Matt, it's Michael. A couple of things I'd add on just the sustainability of the comp into the back half. First of all, Mark kind of alluded to this, we've seen really healthy balance of that growth. It's transactions, it's basket, it's broad-based across categories, regions, demographics. Just the other thing I would add is that our comp base is still a relatively mature comp base. Only now are new stores really beginning to enter that comp base in a significant way, and that's going to continue to provide a tailwind to that U.S. comp for a while. Matthew Boss: Great. Michael, just to break down the return to high teens EBITDA margin as a multi-year target, what would be the best way to think about the gross margin rate opportunity if we're thinking about breaking down that high teens EBITDA margin just between gross margin and SG&A, maybe relative to the past in terms of when we had previously seen high teens EBITDA margins in the business? Michael Maher: Well, Matt, it's probably a little early for us to get into too much specifics on that yet, I do think gross margin is going to be a meaningful contributor. All of the things that we've seen this year in margin, whether it be leverage on that comp base or continued efficiency gains in our Canadian business, also, very importantly, the continued maturation of new stores and the contribution of ThriftIQ, all of those things are going to have a positive impact on gross margin over time. I would expect some leverage on our SG&A as well as we continue to scale on the top line. We'll have more details on that as we progress. Matthew Boss: That's a great color. Best of luck. Michael Maher: Thanks. Mark Walsh: Thanks, Matt. Operator: Your next question comes from Michael Lasser with UBS. Your line is open. Please go ahead. Michael Lasser: Good evening. Thank you so much for taking my question. Can you unpack the guidance change from what you were expecting previously? You raised the low end of your expectations. If we look at where you came out with in the second quarter, it fell short of where the consensus was despite the increase to the full year outlook, at least at the midpoint. Perhaps you can bridge that for us. Michael Maher: Michael, are you talking about EBITDA? Michael Lasser: Yeah. EBITDA. Michael Maher: Yeah. I think the consensus expectation numbers we're seeing, we're ahead of that on the second quarter. Just as far as our outlook for the year, we're happy with our results so far. We're a little bit ahead of our plans. We've got half the year to go, more than half of our earnings to go. So far, we're off to a good start to the second half, but obviously a long way to go yet. We do have some slight shifts. I mentioned in my remarks, timing of new store openings and the associated pre-opening expenses between Q2 and Q3. Other than that, we're essentially holding our view on the back half of the year unchanged, and therefore, we thought it appropriate to pull up the lower end of the guide. Michael Lasser: Okay. I'll just take that offline. My follow-up question is, you alluded to slower comps in the back half, in part because of more difficult comparisons. At the same time, you're going to have the rollout of ThriftIQ, which it sounds like is an accelerant for gross profit dollars, maybe not as much on the sales side, and it could come at the expense of margin. If you could square all that would be super helpful. Michael Maher: Yeah. Sure, Michael. What we're seeing is gross profit dollar growth around 100 basis points relative to the rest of the fleet in the pilot stores with ThriftIQ. Just at the risk of stating the obvious, that could come from higher sales for a given level of production or similar sales, but on lower levels of production, right? Essentially, it's about sales yield, and that's where we're seeing that improvement. We're seeing a mix of both, frankly, in our pilot stores. We focused on that gross profit improvement. Certainly, that can be a component, though, of comp tailwind for us. We have factored that in. Remember, it is going to be a phased rollout. We're going to be deliberate about that. While to a certain extent that is helping us out, we are also just mindful of the continuing momentum from last year that we are beginning to lap, particularly in the U.S. in the back half of the year. Michael Lasser: Understood. Thank you so much, and good luck. Michael Maher: Thanks, Michael. Operator: Your next question comes from Randy Konik with Jefferies Group. Your line is open. Please go ahead. Randy Konik: Yeah, thanks, guys. A couple of things. First on Canada, you continue to kind of drive up the profit margins there. I think it's getting that region very much more efficient from a margin standpoint. Just kind of remind us where we are in the cycle of that region's margins and where you think they can go in the coming years. Back on, I think, something you said in the script. I believe you said something to the effect of North Carolina, that store, I think you said something to the effect of it was like your best opening ever. Kind of remind us what you're doing differently from a store opening procedure to kind of drive more awareness pre-opening of these stores and, what you're doing differently than perhaps what you may have been doing when you opened stores a few years ago. Let's start there. Thanks, guys. Michael Maher: Sure, Randy, it's Michael. I'll take your first question on Canada margins and kind of where we've been and where that's going. Yeah, very pleased to have another quarter of Canadian segment profit growth, meaningful Canadian segment profit growth, up over 15% on sales up 2%. A lot going on behind that we expect to continue to drive improvement for us for several quarters yet. First of all, just tight management of production in response to demand trends, that's helping us drive sales yields, which, as we just talked about, is a meaningful indicator of gross margin. Offsite processing, we talked about a little bit in our prepared remarks. We continue to make improvements not only on the cost per unit, but on the sales yield of the items that we are processing in our offsite facilities. That's helping drive improvement in the Canadian segment. Onsite donation growth continues to be robust, outpacing our sales growth. All of those things are contributing to Canadian margin, and we expect will continue to contribute to Canadian margin in the coming quarters. The other factor which we talked about for a while is just the impact of the new store drag. We've talked about this for a while. New stores are a temporary drag on profit margins. They begin to inflect over time, but we are now shifting the vast majority of our growth to the U.S. as we go forward. Canada will be very relatively few new store openings going forward, and that means less of that new store drag. We do expect to continue to see Canadian contribution margins that are above those in the U.S. as we focus our growth investments in the U.S. I would expect to continue to hold, if not improve Canadian margins for the foreseeable future. Jubran Tanious: Randy, this is Jubran. On the new stores, very excited about that first location in North Carolina. That's our Burlington store, which was a record breaker. Very pleased with our new store fleet in general. The performance has been right on track with what we had hoped. I think we've gotten better at this. There's a few reasons why. The first is that we've been on a continuous improvement path with our algorithm and frankly, picking winners when it comes to sites. The site selection process has continued over the years, and I think our success bears this out. When you think about entering a new market, a new region of the country, where we've talked about the Southeast, the Southern Tier, really just reinforces the durability and scalability of our model. It resonates on all markets. That's the first, site selection. The second thing is we actually have a dedicated finance and senior leadership team that holds the hand of a new store as it grows into its maturity curve, and that is helping us ramp as well. I think we made in the opening comments, a comment that most new stores are opening with ThriftIQ. That has cut our training time in half. It has streamlined the process, and it makes it easier for a new store to get on its feet quicker. The last thing I would say, Randy, is the marketing playbook. This is a nod to the continued evolution and good work by our marketing team, where there is a focus on the local communities with a mix of tactics. Paid search, outdoor, billboards, influencer. We have cultivated a nice ecosystem of influencers, including new influencers that join in these new markets. Optimizing the physical site itself for maximum drive-by awareness. You put all that together, and you see the performance that we're seeing in the new stores. I'll just close by saying, really excited about the additional stores to come in North Carolina. That first store in Tennessee, which will open later this year, and then a real nice pipeline that's filling out for us in the Southern Tier with stores to open in 2027 and beyond. Randy Konik: Super helpful. I guess last one for Michael. Remind us where we are with onsite donation penetration, where we come from, let's say, three years ago, or where we are today. Where do you think we can go? How is GreenDrop helping with that? The strategy going forward there. Just remind us finally on differential on, let's say, the profit of the margins or the cost benefit of onsite versus third party. If you kind of think about that going forward, combined with ThriftIQ and other strategies and better new store openings, it feels like you have real good confidence in growing that margin structure back to those high teens, either on target or even quicker than you planned. Just curious there. Thanks. Michael Maher: Yeah, Randy. First of all, just the metrics. We reached 84.9% in the recent quarter in terms of onsite donations and GreenDrop as a percentage of our total pounds processed. That's up from 78.5% a year ago. Significant growth, and we continue to see that in both countries. I'll let Jubran speak to why that is and how high is high. I would just say yes, that is absolutely a factor in our gross margin expansion and in our confidence of the continued gross margin expansion. It is both a top-line driver because that tends to be a high-quality source of supply, and a margin driver because it's our most cost-efficient source of supply as well. Yeah, definitely factored into our outlook for the year and our contemplation of the long-term algorithm. Jubran Tanious: Yeah, Randy, Jubran. I would also just add that we are seeing broad-based on-site donation growth across regions, across countries, and that really is a function of the execution at our stores. Super proud of our field leaders for how we're showing up to donors each and every day, and that's really what's driving that broad-based growth. In terms of how high is high, and can you continue to keep growing on-site donations? Absolutely. Even though we have continued to drive them over the years, we expect that to continue because as large as we are, we're still getting just a small portion of the textiles that go into landfill each and every year. In terms of continuing to hold onto that donor and win that new donor because of advocacy and execution, we fully expect to continue to grow on-site donations in both mature stores and the new stores that we're opening for years to come. Randy Konik: Super helpful. Thanks, guys. Jubran Tanious: Thanks, Randy. Michael Maher: Thanks, Randy. Operator: Your next question comes from Bob Drbul with BTIG. Your line is open. Please go ahead. Jake Katsikis: Hey, guys. This is actually Jake Katsikis on for Bob. Thanks for taking my question. Just wondering if you could compare and contrast what you're seeing from the consumer in Canada versus the U.S. Are there differences in health of the consumer or customer behavior, traffic, spending patterns? Just curious there. Thanks. Mark Walsh: Jake, thanks for the question. This is Mark. Well, I think that one thing very consistent in both countries, both in the U.S. and Canada, the younger and the higher household income cohorts are becoming a larger portion of our customer base, absolutely. See growth in both of those cohorts. The difference between the two countries is really the low end, and we're still seeing pressure in Canada at the lower end of the household income demographic. Jake Katsikis: Great. Thank you. Operator: Your next question comes from the line of Peter Keith with Piper Sandler. Your line is open. Please go ahead. Peter Keith: Thank you very much. Good afternoon, everyone. The ThriftIQ certainly sound exciting. I was hoping you could help me bring it to life a little bit more because if I go back, I do think about Savers as a very analytical company that was able to look at demand trends and adjust pricing historically. It sounds like this is providing a bit more consistency. Is it reacting to demand? Is it reacting to competitive pricing? Maybe just help me understand the step change benefits that seem to be occurring here. Jubran Tanious: Hey, Peter. This is Jubran. I'll take a stab at that. The guys can jump in if I miss anything. It's a good question because it's important that everybody understand the exact change that we have made here. If I could just take a minute, walk all of you through with a simple before and after. Prior to ThriftIQ, our team members would assess each garment. They would grade it based on condition and quality to determine its value. Then that grade would translate to a price based on the category and department. For many years, this method has worked well. On average, we would get it right. It's too inconsistent. For example, under that legacy approach, two team members could evaluate the exact same garment and come up with different prices, even with the best training because of the subjectivity of the assessment itself. Inconsistent. In thrift, as you mentioned, consistency matters. Now fast-forward to ThriftIQ. We're no longer asking the team member to assess condition and quality. We're simply asking them to identify the brand. We use that brand, combine it with seasonality, sell-through, to determine the price of the garment. It's easier. It's more objective. It allows us to show up to the customer in a more consistent and precise way. That is the key. Peter Keith: All right. That's a great explanation. Thank you for bringing that to light for me. Jubran Tanious: Thanks. Peter Keith: Maybe, just sticking on ThriftIQ, does that go just to the store level, or can it also, obviously, go into CPC? Jubran Tanious: It would be both. Peter Keith: Yeah Jubran Tanious: Our rollout plan that the guys articulated earlier, will actually be front-loaded with our off-site facilities, and then we'll cascade with a fast follow into our traditional stores. Really both, Peter. Peter Keith: Great. Okay. One last question, maybe this is a financial question for Michael. On the new store growth, where it has been a headwind to EBITDA, I believe it's neutral to EBITDA this year. As we move into the back half, are we still neutral, or do we start to see some EBITDA benefits from that historic store growth? Michael Maher: Yeah, Peter, it's actually a slight tailwind this year. There's a little timing within the year in terms of when the stores open, how the pre-opening expenses flow. Overall for the year, it's a very modest tailwind, which is an inflection point from where we've been for the last several years. What is encouraging to us is that while new stores are still performing in line with our expectations on the top line, the profitability is ramping faster. As I mentioned, we opened that 2025 class fairly back-weighted, as you probably remember, last year. They entered this year still relatively young. More than half of that class was positive on a four-wall basis, four-wall business contribution in the second quarter. That's meaningfully ahead of what we've seen before. Given how important that has been to our financial performance over the last few years, to our algorithm going forward, we're really encouraged about what that means for future profit growth. Together with the innovation agenda, it's why we felt more confident in the path back to the high teens EBITDA margins. Peter Keith: Very good. Sounds exciting, thanks so much. Mark Walsh: Thanks. Michael Maher: Great. Jubran Tanious: Thanks, Peter. Operator: Your next question comes from Dylan Carden with William Blair. Your line is open. Please go ahead. Anna Linscott: Hi, this is Anna Linscott on for Dylan Carden. Thanks for the time. Just curious if ThriftIQ was envisioned in the original high teens EBITDA margin target that you had out there for a while, or if this is entirely incremental. Should this be viewed as a platform to add additional efficiencies over time? Thanks. Michael Maher: Yeah. I'll take the first part of that question. I would say not specifically, as we've talked about our algorithm over time. We've long believed it rested on a few pillars. Part of it was new store growth and the continued maturation of those new stores, and part of it was our innovation agenda. As Mark mentioned in his remarks, we've been working on this for a couple of years now. We have seen increasingly encouraging signs from it for some time. Obviously, didn't feel ready to talk about it until now. We certainly saw innovation as an element of the path back. What I think has changed for us now is, as we're seeing these results accumulate, as we're seeing the ramp of our new stores continue to get better. What is new is that we're able to provide some more specificity and pull forward the timeline on that to seeing that path back to high teens EBITDA margins within the next three years. Mark Walsh: Anna, let me just add on your comment about platform for innovation. I think it's a great opportunity to make sure I personally invite, we all personally invite you guys to our Savers Innovation Day that will be taking place in Minnesota in early November. It's really an opportunity to get a firsthand look at the next phase of innovation, really our innovation revolution, and walk you through core improvements we made to the CPC operating environment, giving you a chance to live comparison of how we're changing our pricing approach from the old way that Jubran described to ThriftIQ. Lastly, the chance to see some of the additional innovation ideas that we will be driving through the system, in the very late part of this year into 2027. Anna Linscott: Great. Thank you so much for the time. Mark Walsh: Thank you. Operator: Your next question comes from the line of Mark Altschwager with Baird. Your line is open. Please go ahead. Mark Altschwager: Thank you for taking my question. Couple here. You said ThriftIQ is helping new stores ramp profitably faster, cutting the greater time, I think almost in half you said. Does that change the underlying new store model and the payback period? At what point would that argue for maybe stepping up the opening cadence from the 25 per year, that you are on right now? Michael Maher: Hey, Mark. I'll speak to the new store model, and maybe Jubran can speak to our pace of new store openings. It's early, but yes, so far what we're seeing is a faster path to profitability than we previously anticipated. ThriftIQ being one among several factors contributing to that. We do plan to refresh our new store economic model and share more about that with you all in future quarters. I think it's a little early for us to do that yet. Jubran Tanious: Mark, on the new store opening, 25 stores per year as we've guided. We like where we're at. We continue to see great site selection, good performance, high batting average on those. I think we've talked about in previous calls, the tone and tenor of the conversations that we've had with developers and landlords has really changed over time. Really like how our pipeline is building. I will take us back to one of the fundamental building blocks of opening up a new store, certainly a new market, and that's supply. We want to make sure that we've got the supply equation fully satisfied, the cornerstone of which is the onsite donation. We want to make sure we've satisfied that. In terms of finding new sites that are going to be very attractive to our long-term algorithm, really no concerns at all about that, and excited about what the remainder of this year will bring 2027, and we're starting to fill up the pipeline for 2028. Mark Altschwager: Thank you. You called out some of the success in newer markets like North Carolina, Tennessee. How would you characterize the profitability of entering a new market versus adding another store in an existing market, and whether you lean towards one versus the other in your plans? Michael Maher: Yeah, Mark, it's Michael. There certainly are different dynamics there, and they can work in different directions, too. For example, when we enter a new market, we typically assume that we're going to start out a little bit lower in terms of onsite donation penetration than when we open a store as an infill on an existing market. That's all baked into the initial planning, and we still have to hit the same return thresholds. There may be offsetting things around real estate costs, for example, that can go into that. Overall, I wouldn't say that one is necessarily always going to be higher or lower than the other. At the end of the day, we target a return on our investment that is somewhere around double our cost of capital, and we've got no shortage of candidates of stores, new store locations that meet that hurdle. Mark Altschwager: Thank you. Mark Walsh: Thank you. Jubran Tanious: Thanks, Mark. Operator: Your next question comes from the line of Jeremy Hamblin with Craig-Hallum. Your line is open. Please go ahead. Will Forsberg: Hey, this is Will on for Jeremy. I just wanted to start by seeing if you could share any more color on the composition of the U.S. and Canada comps in the quarter in terms of basket versus transaction, and then maybe how those trends have continued here in quarter to date. Michael Maher: Sure, yeah. It's Michael. Essentially, kind of similar to what we've seen in recent quarters. In the U.S., pretty good balance. We're seeing both basket and transaction count growth. In Canada, it's more basket driven. Transactions flattened down slightly. Thus far, what we're seeing in the third quarter is good. The comps in both countries are roughly in line with what they delivered in the second quarter. Will Forsberg: Got it. That's helpful. It sounds like the new stores are maturing ahead of expectations. I guess one, are all of the 2024 class of stores in the comp base at this point? Then two, what sort of comp lift have you seen from the new stores in the U.S.? Michael Maher: Yeah. Everything we opened in 2024 is now in the comp base. Just a few of the 2025 class, because that was relatively back-weighted. As I mentioned earlier, still pretty mature comp store base, but as those 2023 and 2024 class new stores have now entered the base, we're seeing anywhere from 40-50 basis points of comp benefit from that because as I think, the implication of your question, as I'm sure you know, is that even once a store enters the comp base, it's a young comp store. It's still growing at a rate well ahead of our mature fleet. That's a nice tailwind to the comp base, and we still have a number of years before that effect has normalized and plateaued. Will Forsberg: Got it. That's helpful. Thank you for taking the questions. Michael Maher: Sure. Mark Walsh: Thank you. Operator: Your next question comes from the line of Owen Rickert with Northland Capital Markets. Your line is open. Please go ahead. Owen Rickert: Hey, guys. Thanks for taking my question here. For the non-loyalty customer cohort, can you just describe how they are behaviorally? Are they primarily one-time or infrequent visitors? Maybe secondly there, are there any specific conversion strategies you're deploying as of recent, maybe ThriftIQ enabled personalization to maybe bring them into that loyalty ecosystem? Mark Walsh: It's a great question. Thanks, Owen. I'll go here. In terms of one of our key retail operating goals and objectives that we talk to store managers about is signing up people for the loyalty program. Really concerted effort on making sure every opportunity is converted into a new member sign-up. In terms of the non-member frequency transaction levels, obviously we don't have a lot of that because we don't have the data. What I can tell you is we're dogmatic about making sure that our loyalty sign-up rates continue to grow and that, and especially in new stores, we have very, very high goals for our store managers in terms of getting them into the fold. Clearly it is a core piece of our retail agenda and continuing to grow that loyalty base, which has grown very nicely over the last three or four years. Owen Rickert: Great. Thanks, guys. Mark Walsh: Thank you. Operator: We have reached the end of the Q&A session. I will now turn the call back over to Mark Walsh for closing remarks. Mark Walsh: I want to thank everyone, as always, for your interest. We look forward to updating you on the third quarter, and I hope to see each and every one of you in Minneapolis in early November for Innovation Day. Thanks again. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Savers Value Village, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Savers Value Village wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. 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Savers Value Village (SVV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Savers Value Village, Inc.? Here are five stocks we like better. Strong second-quarter performance: Net sales rose 7.4% to $448 million, with comparable-store sales up 4.4% and adjusted EBITDA increasing 8% to $75 million. U.S. comparable sales grew 6.6%, while Canadian segment profit rose nearly 16% despite sluggish sales growth. ThriftIQ is improving profitability: The pricing platform was operating in 58 stores and delivered roughly 100 basis points of additional gross-profit-dollar growth in pilot locations, while cutting new-grader training time by about half. Management expects it to support 50–100 basis points of annual adjusted EBITDA margin expansion beginning in 2027. Full-year outlook reaffirmed and updated: Savers expects 2026 sales of $1.77 billion–$1.79 billion, adjusted EBITDA of $265 million–$275 million and approximately 25 new stores. Capital priorities include store expansion, reducing net leverage below two times by the end of next year and opportunistic share repurchases. 3 Reasons Wall Street Is 100% Bullish on This Recent IPO Savers Value Village (NYSE:SVV) reported second-quarter results marked by continued U.S. comparable-sales growth, higher profitability in both major markets and an updated full-year outlook that incorporates a phased rollout of its ThriftIQ pricing platform. Chief Executive Officer Mark Walsh said the company recorded its third consecutive quarter of year-over-year adjusted EBITDA growth, while new-store profitability began to ramp faster than originally anticipated. Management said the combination of store maturation, productivity initiatives and ThriftIQ supports a path toward high-teens adjusted EBITDA margins within the next three years. → No Hangover: Revisiting Microsoft One Week After Earnings Total net sales rose 7.4% to $448 million in the quarter ended July 4, 2026. On a constant-currency basis, sales increased 7.1%, while comparable-store sales increased 4.4%. U.S. net sales increased 11.6% to $255 million, with comparable-store sales up 6.6%. Walsh said the U.S. performance was driven by both higher transaction counts and average basket size, with growth across regions, categories and demographic groups. Management said younger and more affluent customers remained the company’s fastest-growing consumer cohorts, while growth was also strong among lower-income shoppers. → MarketBeat Week in Review – 08/03 - 08/07 Canadian net sales increased 2.2% to $158 million, and comparable-store sales rose 0.8%, including an approximately 70-basis-point benefit from the timing shift of Easter. While management characterized Canadian macroeconomic conditions as stable but sluggish, Canada segment profit increased nearly 16% and segment profit margin expanded 330 basis points. Chief Financial Officer Michael Maher attributed the Canadian profit improvement to tighter production management, off-site processing improvements and the continued maturation of new stores. He said the company is planning its Canadian business around roughly flat comparable-store sales in the near term. Adjusted EBITDA increased 8% to $75 million, representing 16.6% of sales. GAAP net income was $22 million, or $0.14 per diluted share. Adjusted net income was also $22 million, or $0.14 per diluted share. U.S. segment profit increased by $10 million to $59 million. Canada segment profit increased by $6 million to $46 million. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Cost of merchandise sold declined 170 basis points as a percentage of sales to 43.1%, which Maher said reflected comparable-sales leverage, efficiency initiatives and growth in on-site donations. The improvement was partly offset by the impact of new-store openings. SG&A expenses rose 15% to $102 million and included a $2 million impairment charge tied primarily to the consolidation of a Canadian warehouse processing facility, as well as $1 million of costs associated with the repricing of the company’s term loan. The company announced ThriftIQ, a proprietary data-driven platform designed to improve precision and consistency in pricing men’s and women’s apparel. The system has been tested for nearly two years and has priced more than 25 million items across 45,000 brands, according to management. ThriftIQ is now operational in 58 stores in the U.S. and Canada, including most locations opened during the past six months. Walsh said the platform uses data on brands, categories, price points and sell-through outcomes to recommend pricing while maintaining an average discount of 40% to 70% below traditional retail prices. Maher said pilot stores using ThriftIQ have generated gross-profit-dollar growth approximately 100 basis points higher than non-pilot stores. He said customers in pilot locations have responded through higher unit sell-through, larger baskets and stronger sales yields, while average prices were the same as or lower than the rest of the store fleet. President and Chief Operating Officer Jubran Tanious said the platform reduces the subjectivity of the previous grading process. Rather than requiring team members to assess each apparel item’s quality and condition to determine a price, ThriftIQ asks them to identify the brand and uses factors including seasonality and sell-through to establish pricing. Management said ThriftIQ also has reduced training time for new graders by about half. More than half of the company’s 2025 class of new stores generated positive four-wall contribution during the second quarter, ahead of prior new-store classes. Maher said Savers expects its innovation agenda, new-store maturation, comparable-sales leverage and other profit-improvement initiatives to support 50 to 100 basis points of annual adjusted EBITDA margin expansion beginning in 2027. The contribution from ThriftIQ is expected to build as deployment expands through 2027 and into early 2028, with full annualization anticipated in 2028 and beyond. Savers opened four U.S. stores and two Canadian stores in the second quarter. Walsh said a recently opened Burlington, North Carolina, location delivered the highest opening-week sales in company history. The company expects to open approximately 25 stores in 2026, with more than 20 planned in the U.S. across 11 states. Its first Tennessee store is expected to open later this year. Tanious said the company’s site-selection process, dedicated leadership support for new stores, rollout of ThriftIQ and local marketing efforts have contributed to improved store-opening performance. Management also said on-site donations and GreenDrop accounted for 84.9% of total pounds processed during the quarter, compared with 78.5% a year earlier. The company ended the quarter with $92 million in cash and cash equivalents and a net leverage ratio of 2.4 times. It repurchased 1.2 million shares at a weighted average price of $8.10. Maher said capital allocation priorities remain funding new-store growth, reducing debt toward a net leverage ratio below two times by the end of next year and opportunistically repurchasing shares. For fiscal 2026, Savers now expects net sales of $1.77 billion to $1.79 billion, comparable-store sales growth of 3% to 4%, adjusted EBITDA of $265 million to $275 million, and approximately 25 new-store openings. The company forecast net income of $67 million to $76 million, or $0.42 to $0.47 per diluted share. For the third quarter, management expects total revenue growth to fall between first- and second-quarter levels, with comparable-sales growth moderating somewhat as the company laps stronger comparisons. Adjusted EBITDA is expected to be modestly below the second quarter, primarily due to the timing of new-store openings and related pre-opening expenses. Savers plans to open eight stores during the third quarter. Savers Value Village, Inc (NYSE: SVV) is a publicly traded thrift retailer that operates a network of donation-based retail stores. Headquartered in Bellevue, Washington, the company specializes in selling second-hand apparel, footwear, household items, accessories and other pre-owned goods. Through its retail stores, SVV offers value-conscious shoppers the opportunity to purchase quality, gently used merchandise at affordable prices. At the heart of the company's model is a partnership network with more than 500 nonprofit organizations across North America. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Savers Value Village Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

In the second quarter of 2026, Savers Value Village reported higher sales of US$448.22 million and net income of US$21.63 million, updated full-year guidance, advanced its share repurchase program, and detailed progress on its ThriftIQ AI pricing platform rollout. The launch and successful pilot of ThriftIQ, which is improving sell-through and basket sizes while keeping prices around 40–70% below traditional retail, signals how data and automation could reshape the company’s thrift model and operational efficiency. We’ll now examine how ThriftIQ’s early success fits into Savers Value Village’s existing investment narrative and what it might mean ahead. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. To own Savers Value Village, you need to believe that a data driven thrift model can translate steady store traffic and donated supply into improving profitability. Near term, the key catalyst is whether operational initiatives like ThriftIQ can lift sales and margins without eroding the value proposition, while the biggest risk remains execution pressure from ongoing store expansion and cost inflation. The latest results modestly support the catalyst, but do not materially change that core risk profile. Among the recent announcements, ThriftIQ’s early rollout is most relevant. Management reports higher unit sell through, larger baskets, and stronger sales yields in pilot stores while keeping prices roughly 40–70% below traditional retail. For investors focused on near term catalysts, this speaks directly to whether technology and process upgrades can offset labor and inventory related pressures as the company invests in new stores and processing capacity. Yet while ThriftIQ is encouraging, investors should still be aware of how rising labor costs and a largely manual, store centric model could... Read the full narrative on Savers Value Village (it's free!) Savers Value Village's narrative projects $2.0 billion revenue and $145.8 million earnings by 2028. This requires 8.5% yearly revenue growth and about a $111.8 million earnings increase from $34.0 million today. Uncover how Savers Value Village's forecasts yield a $14.75 fair value, a 21% upside to its current price. Some of the lowest ranked analysts were already cautious, assuming revenue of about US$2.1 billion and earnings near US$147.6 million by 2029, and they worry that rising labor costs and slow digital adoption could offset benefits from tools like ThriftIQ, so it is worth comparing their more pessimistic view with the recent data and deciding which risks matter most to you. Explore another fair value estimate on Savers Value Village - why the stock might be worth 44% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Savers Value Village research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free Savers Value Village research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Savers Value Village's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Find 51 companies with promising cash flow potential yet trading below their fair value. The latest GPUs need a type of rare earth metal called Neodymium and there are only 28 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SVV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a third consecutive quarter of year-over-year adjusted EBITDA growth, driven by broad-based U.S. comparable sales and significant margin expansion in Canada. U.S. performance was fueled by both transaction and basket growth across all regions and demographics, with younger and more affluent cohorts remaining the fastest-growing segments. Introduced ThriftIQ, a proprietary data-driven platform that uses a dataset of 25 million graded items to replace subjective pricing with objective, brand-based recommendations. Canadian segment profit grew nearly 16% despite sluggish macro conditions, attributed to tight production management and efficiency gains in off-site processing facilities. New store profitability is ramping ahead of original expectations, with over half of the 2025 store class already generating positive four-wall contributions. Strategic shift of capital allocation toward U.S. expansion is reducing the margin drag historically associated with new store openings in the Canadian market. On-site donation penetration reached 84.9%, up from 78.5% a year ago, providing a high-quality, cost-efficient supply chain that supports gross margin expansion. Management projects a return to high teens adjusted EBITDA margins within the next three years, supported by 50-100 basis points of annual expansion starting in 2027. Full-year 2026 guidance assumes approximately 25 new store openings, with a strategic focus on U.S. markets including the first entry into Tennessee later this year. ThriftIQ deployment will follow a phased rollout, starting with off-site processing facilities followed by retail stores, with financial contributions expected to build as the platform scales. Third quarter outlook anticipates comparable sales growth to moderate slightly as the company begins to lap stronger year-over-year comparisons in the U.S. business. Capital allocation priorities remain focused on funding new store growth and achieving a net leverage ratio under two times by the end of next year. Recorded a $2 million impairment charge related to the consolidation of a Canadian warehouse processing facility, enabled by improved off-site operational efficiencies. Interest expense decreased 19% year-over-year following debt refinancing and repricing, resulting in approximately $20 million in annualized savings. Management noted that while the U.S. consumer remains resilient, the Canadian macro environment remains sluggish, particularly impacting lower-income household demographics. Change management rigor is being applied to the ThriftIQ rollout to ensure the transition from subjective grading to data-driven pricing does not disrupt store operations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a balance of contribution from the innovation agenda (ThriftIQ), new store maturation, and ongoing comparable store margin leverage. Phasing will likely start at the lower end of the 50-100 basis point expansion range in 2027, building toward the higher end as ThriftIQ reaches full annualization in 2028. Pilot stores showed gross profit dollar growth approximately 100 basis points higher than non-pilot stores, driven by improved sales yields and unit sell-through. The platform simplifies labor by reducing training time for new graders by approximately half, moving from subjective quality assessment to objective brand identification. Growth is being driven by a 'sandwich effect' where both high-income and low-income household cohorts are outpacing the middle-income demographic. New stores entering the comp base are providing a 40-50 basis point tailwind, as these younger stores grow at rates significantly higher than the mature fleet. Record-breaking opening week sales in North Carolina reinforce management's confidence that the model is scalable across new regions like the U.S. Southeast. Site selection is increasingly data-driven, focusing on markets where the 'supply equation' (on-site donations) can be fully satisfied to meet return hurdles.

Savers Value Village, Inc. (NYSE:SVV) reported second-quarter 2026 results that were broadly in line with Wall Street expectations, while raising its comparable store sales outlook for the full year. The thrift retailer also highlighted continued momentum in profitability and new store performance. Shares were little changed in premarket trading following the earnings announcement. The company reported adjusted earnings of $0.14 per share for the quarter ended 4 July, matching analysts’ consensus estimate. Revenue increased 7.4% year over year to $448.2 million, also in line with market expectations. The result compared with revenue of $417.2 million in the same quarter of 2025. Growth was supported by a 6.6% increase in comparable store sales in the United States, alongside contributions from newly opened locations. Savers Value Village reaffirmed confidence in its outlook by updating its fiscal 2026 guidance. Management expects revenue to range between $1.77 billion and $1.79 billion, with the midpoint of $1.78 billion broadly matching analyst forecasts. The company also forecast adjusted earnings per share of between $0.47 and $0.53, with the midpoint of $0.50 slightly above the consensus estimate of $0.48. In addition, Savers Value Village increased its comparable store sales growth outlook to between 3.0% and 4.0%, compared with its previous forecast of 2.5% to 4.0%. Adjusted EBITDA increased to $74.5 million, marking the third consecutive quarter of year-over-year growth. The adjusted EBITDA margin stood at 16.6%. During the quarter, the company opened six new stores, taking its total store count to 375 locations. Management noted that its first store in North Carolina delivered a record-breaking grand opening. Chief Executive Officer Mark Walsh said, “I am delighted with our second quarter results, which marks the third consecutive quarter of year-over-year adjusted EBITDA growth, continued momentum in our U.S. comparable store sales, and new store performance that is ahead of our expectations.” The company also announced the rollout of ThriftIQ, its proprietary pricing platform developed in partnership with Kaizen Analytix. According to management, pilot stores using the platform have delivered higher unit sell-through rates and gross profit dollar growth that is approximately 100 basis points above locations not yet using the system. Savers Value Village stock price

This article first appeared on GuruFocus. Total Net Sales: Increased 7.4% to $448 million. Comparable Store Sales: Increased 4.4%. US Net Sales: Increased 11.6% to $255 million, with comps up 6.6%. Canada Net Sales: Increased 2.2% to $158 million, with comps up 0.8%. Adjusted EBITDA: Increased 8% to $75 million, or 16.6% of sales. GAAP Net Income: $22 million, or $0.14 per diluted share. Adjusted Net Income: $22 million, or $0.14 per diluted share. Cost of Merchandise Sold: Decreased 170 basis points to 43.1% of net sales. Salaries, Wages, and Benefits: $85 million; excluding IPO-related stock-based compensation, 19.7% of net sales. SG&A Expenses: Increased 15% to $102 million, or 22.7% of net sales. Depreciation and Amortization: Increased 22% to $25 million. Net Interest Expense: Decreased 19% to $13 million. US Segment Profit: $59 million, an increase of $10 million. Canada Segment Profit: $46 million, up $6 million, with segment margin expanding 330 basis points. Cash and Cash Equivalents: $92 million. Net Leverage Ratio: 2.4 times. Share Repurchases: Repurchased 1.2 million shares at a weighted average price of $8.10. New Store Openings: Opened four locations in the US and two in Canada during the quarter. 2026 Outlook: Net sales of $1.77 billion to $1.79 billion; comp sales growth of 3% to 4%; net income of $67 million to $76 million; adjusted net income of $76 million to $85 million; adjusted EBITDA of $265 million to $275 million; capital expenditures of $125 million to $145 million; approximately 25 new store openings. Warning! GuruFocus has detected 6 Warning Signs with SVV. Is SVV fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Savers Value Village Inc (NYSE:SVV) delivered a third consecutive quarter of year-over-year adjusted EBITDA growth, with adjusted EBITDA increasing 8% to $75 million, reinforcing confidence in its earnings inflection. US business sales grew 11.6% with comparable store sales up 6.6%, driven by broad-based growth across categories, regions, and demographics, including strong performance from younger and more affluent consumer cohorts. The new ThriftIQ platform, live in 58 stores, has driven gross profit dollar growth approximately 100 basis points higher in pilot stores compared to non-pilot stores, while maintaining average prices 40% to 70% below traditional retail. New store profitability is ramping ahead of expectations, with more than half of the 2025 store class generating positive four-wall contribution in Q2, and the North Carolina opening achieving the highest opening week sales in company history. Canada segment profit grew almost 16% with a 330 basis point segment margin expansion despite limited top-line growth, driven by productivity and profit improvement initiatives. The company raised the low end of its full-year 2026 guidance, reflecting strong first-half performance and continued adjusted EBITDA growth expectations for the second half. Onsite donation penetration reached 84.9% of total pounds processed, up from 78.5% a year ago, providing a high-quality, cost-efficient supply source that supports gross margin expansion. Savers Value Village Inc (NYSE:SVV) reduced annualized interest expense by approximately $20 million through debt refinancing and repricing, with net interest expense down 19% in the quarter. Canada comparable store sales increased only 0.8% in Q2, reflecting sluggish economic conditions and pressure from lower household income demographics, with no material improvement expected in the near term. SG&A expenses increased 15% to $102 million, with SG&A as a percentage of net sales up 150 basis points to 22.7%, driven by new store growth, higher incentive plan expense, and increased stock-based compensation. The company expects comparable store sales growth to moderate in Q3 as it begins lapping stronger comparisons from the prior year. Adjusted EBITDA for Q3 is expected to be modestly below Q2 due to a shift in the timing of new store openings and associated pre-opening expenses. The macro environment remains stable but sluggish, particularly in Canada, where the company plans around a roughly flat comp and sees continued weakness at the lower end of the household income demographic. The company incurred a $2 million impairment charge related to the consolidation of a Canadian warehouse processing facility, reflecting ongoing efficiency adjustments. ThriftIQ's financial contribution is expected to build gradually as deployment scales, with full annualization not expected until 2028, meaning near-term margin expansion will be at the lower end of the 50 to 100 basis point annual range. New store growth remains a temporary drag on profit margins, and while the drag is easing, the company still faces significant capital expenditures of $125 million to $145 million for 2026. Q: Can you unpack the drivers of the return to the high teens EBITDA margin and the assumptions that underpin it, including the contribution from ThriftIQ over the three-year period?A: Michael Maher (CFO) explained that the path back to high teens margins is a combination of the innovation agenda (with ThriftIQ as a significant piece), new store ramp, and ongoing comp margin leverage. He expects a healthy balance of contributions from all three, with some overlap. The contribution from ThriftIQ will build as deployment scales, with full annualization expected in 2028. He guided that 2027 should see the lower end of the 50-100 basis point annual margin expansion range, building toward the higher end in subsequent years. Q: Can you speak to new customer acquisition, trends from existing cohorts, and any constraints to sustaining mid-single digit comps in the back half of the year?A: Mark Walsh (CEO) noted robust new customer interaction and strong growth in the younger cohort. He highlighted a "sandwich effect" where both high and low household income customers are outpacing middle-income growth, speaking to the universal appeal of the value proposition. Michael Maher (CFO) added that the comp base is still relatively mature, and new stores are only now beginning to enter the comp base significantly, which will continue to provide a tailwind to US comps. Q: Can you provide more detail on the ThriftIQ pilot results, specifically the 100 basis point higher gross profit dollar growthhow much is from better sales momentum versus better COGS efficiencies?A: Mark Walsh (CEO) explained that ThriftIQ was born from an opportunity to leverage one of the largest data sets in secondhand retail. The objective was to improve the customer value proposition by making prices more precise, consistent, and predictable. In pilot stores, average prices are the same or lower than the rest of the fleet, maintaining the 40%-70% below traditional retail band. The results show higher unit sell-through, larger baskets, stronger sales yields, and faster new store ramps, ultimately driving improved profitability. Q: Can you break down the return to high teens EBITDA margin between gross margin and SG&A, relative to when you previously saw high teens margins?A: Michael Maher (CFO) stated it's a little early for specifics, but gross margin will be a meaningful contributor. This includes leverage on the comp base, continued efficiency gains in Canada, maturation of new stores, and the contribution of ThriftIQ. He also expects some leverage on SG&A as the company scales on the top line, with more details to come as they progress. Q: Can you unpack the guidance change and bridge the gap between Q2 results and the full-year outlook?A: Michael Maher (CFO) noted the company is ahead of consensus on Q2 and slightly ahead of its own plans. The guidance raise reflects pulling up the lower end of the range while holding the view on the back half unchanged. There are slight shifts in the timing of new store openings and associated pre-opening expenses between Q2 and Q3, but otherwise, the outlook for the second half is essentially unchanged. Q: Where are we in the cycle of Canadian margins, and what are you doing differently with new store openings to drive awareness, given the record-breaking North Carolina opening?A: Michael Maher (CFO) said Canadian segment profit growth is driven by tight production management, off-site processing improvements, and robust onsite donation growth. With the shift of growth investments to the US, Canada will have fewer new store openings, reducing the new store drag, and he expects Canadian margins to hold or improve. Jubran Tanious (COO) attributed new store success to improved site selection, a dedicated team supporting new stores through their maturity curve, the implementation of ThriftIQ (which cuts training time in half), and an evolved marketing playbook focusing on local communities, influencers, and optimizing physical sites for drive-by awareness. Q: Where are we with onsite donation penetration, and how is GreenDrop helping? What is the cost benefit of onsite versus third-party donations?A: Michael Maher (CFO) reported onsite donations and GreenDrop reached 84.9% of total pounds processed, up from 78.5% a year ago. This is a factor in gross margin expansion as it's both a top-line driver (high-quality supply) and a margin driver (most cost-efficient source). Jubran Tanious (COO) added that growth is broad-based across regions and countries, driven by store execution, and expects continued growth as they still capture a small portion of textiles that go to landfill. Q: Can you compare and contrast what you're seeing from the consumer in Canada versus the US?A: Mark Walsh (CEO) noted consistency in both countries with younger and higher household income cohorts becoming a larger portion of the customer base. The key difference is at the low end: Canada is still seeing pressure at the lower end of the household income demographic, while the US is seeing growth across all cohorts. Q: Can you bring ThriftIQ to life and explain the step-change benefits versus the historical analytical approach?A: Jubran Tanious (COO) provided a before-and-after explanation. Previously, team members assessed each garment's condition and quality to determine value, which was subjective and inconsistent. With ThriftIQ, team members only need to identify the brand, which is combined with seasonality and sell-through data to determine price. This is easier, more objective, and allows for a more consistent and precise customer experience. He confirmed the rollout will be front-loaded with off-site facilities, followed by traditional stores. Q: Does ThriftIQ change the underlying new store model and payback period, and at what point would that argue for stepping up the opening cadence from 25 per year?A: Michael Maher (CFO) confirmed they are seeing a faster path to profitability than previously anticipated, with ThriftIQ being one factor. They plan to refresh the new store economic model and share more in future quarters. Jubran Tanious (COO) stated they like the 25-store pace, have a good pipeline, and are focused on ensuring the supply equation is satisfied, particularly through onsite donations, before accelerating further. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Savers Value Village (SVV) came out with quarterly earnings of $0.14 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this retailer of second-hand merchandise would post earnings of $0.02 per share when it actually produced earnings of $0.02, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Savers Value, which belongs to the Zacks Textile - Apparel industry, posted revenues of $448.22 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.42%. This compares to year-ago revenues of $417.21 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Savers Value shares have added about 16.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While Savers Value has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Savers Value was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $459.7 million in revenues for the coming quarter and $0.47 on $1.78 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Under Armour (UAA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This sports apparel company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level. Under Armour's revenues are expected to be $1.11 billion, down 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Savers Value Village, Inc. (SVV) : Free Stock Analysis Report Under Armour, Inc. (UAA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Savers Value Village (SVV) reported $448.22 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.4%. EPS of $0.14 for the same period compares to $0.14 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $450.09 million, representing a surprise of -0.42%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.14. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Savers Value performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable Store Sales Growth - Total: 4.4% versus the three-analyst average estimate of 3.2%. Comparable Store Sales Growth - Canada: 0.8% compared to the -0.5% average estimate based on two analysts. Number of Stores - Australia: 18.00 4 -New Addition versus the two-analyst average estimate of 18.50 4 -New Addition. Number of Stores - Canada: 172 versus the two-analyst average estimate of 172. Number of Stores - Total: 375 versus 377 estimated by two analysts on average. Comparable Store Sales Growth - United States: 6.6% versus 5.6% estimated by two analysts on average. Number of Stores - United States: 185 versus the two-analyst average estimate of 187. Net Sales- U.S. Retail: $255.28 million compared to the $256.82 million average estimate based on three analysts. The reported number represents a change of +11.6% year over year. Net Sales- Other: $34.63 million versus the three-analyst average estimate of $35.7 million. The reported number represents a year-over-year change of +3.6%. Net Sales- Canada Retail: $158.32 million compared to the $158.07 million average estimate based on three analysts. The reported number represents a change of +2.2% year over year. View all Key Company Metrics for Savers Value here>>> Shares of Savers Value have returned +15% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Savers Value Village, Inc. (SVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net Sales Increased 7.4%, driven by U.S. Comparable Store Sales Growth of 6.6% and New Store Contribution First North Carolina Store Opens with Record Breaking Grand Opening Company Launches ThriftIQ, a Proprietary Platform Transforming Thrift Retail Fiscal 2026 Outlook Updated to Reflect Strong First Half Performance BELLEVUE, Wash., August 06, 2026--(BUSINESS WIRE)--Savers Value Village, Inc. (NYSE: SVV), (the "Company") today announced financial results for the thirteen weeks ended July 4, 2026 (the "second quarter"). Financial highlights for the Second Quarter; Comparisons are to the thirteen weeks ended June 28, 2025 Total Company net sales increased 7.4% to $448.2 million; constant-currency net sales1 increased 7.1%; and comparable store sales increased 4.4%. For the United States ("U.S."), net sales increased 11.6% and comparable store sales increased 6.6%. For Canada, net sales increased 2.2%; constant-currency net sales1 increased 2.2%; and comparable store sales increased 0.8%. An earlier Easter in fiscal 2026 positively impacted Canadian comparable store sales by approximately 0.7%. Net income was $21.6 million, or $0.14 per diluted share. Net income margin was 4.8%. Adjusted net income1 was $22.3 million, or $0.14 per diluted share. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA")1 was $74.5 million, a year-over-year increase for the third consecutive quarter, and Adjusted EBITDA margin1 was 16.6%. Mark Walsh, Chief Executive Officer, stated "I am delighted with our second quarter results, which marks the third consecutive quarter of year-over-year adjusted EBITDA growth, continued momentum in our U.S. comparable store sales, and new store performance that is ahead of our expectations, including a record-setting grand opening in North Carolina. I am also excited to unveil ThriftIQ, a proprietary platform that helps automate and optimize the millions of pricing decisions made each day across one of retail’s most diverse assortments. This is the next phase of transformative innovation in our business as we continue to reinvent thrift." Innovation As separately announced today, the Company introduced ThriftIQ, a proprietary platform designed to help optimize its price value proposition with millions of pricing decisions made for men’s and women’s apparel each week across one of retail's most diverse assortments. Developed in partnership with Kaizen Analytix, ThriftIQ modernizes this process by reducing manual inputs and bringing more consistency and precision to pricing decisions resulting in greater value for customers and better financial outcomes for the Company’s business. Since launching in 58 stores over the last year, including most new store openings in the last six months, ThriftIQ has helped price more than 25 million items across 45,000 brands. In pilot stores, the Company has seen customers respond positively to the platform through increased unit sell-through, larger baskets and stronger sales yields. That translated into gross profit dollar growth that was approximately 100 basis points higher compared to non-pilot stores. By simplifying pricing decisions, the Company has enhanced its price-value proposition, solidifying its 40-70% price gap to traditional retail and reduced grader training time by almost half, all of which has helped its new stores ramp profitability faster. The Company plans to continue deployment of the platform across its U.S. and Canadian locations through the first half of 2028. The impact of ThriftIQ is reflected in the Company’s updated 2026 guidance which contemplates a phased rollout. Through its innovation agenda, led by ThriftIQ, the continued maturation of new stores, and ongoing profit improvement initiatives, the Company expects to return to a high-teens adjusted EBITDA margin within the next three years. Beginning in 2027, the Company expects to expand Adjusted EBITDA margin 50–100 basis points annually. Capital Allocation Consistent with its balanced and disciplined approach to capital allocation, the Company continued to take actions during the second quarter to reinvest in its business, strengthen its balance sheet and return capital to stockholders. The Company opened 6 new stores, ending the second quarter with 375 stores, and recorded pre-opening expenses of $3.8 million. On June 2, 2026, the Company completed a repricing amendment to its existing term loans, reducing the applicable rate to 2.50% for Term SOFR Loans and 1.50% for Base Rate Loans. This repricing is expected to reduce interest expense by approximately $1.8 million for the remainder of fiscal 2026 and $3.6 million on an annualized basis. The Company repurchased 1.2 million shares during the second quarter at a weighted average price of $8.10 per share. There was $21.7 million remaining on the Company’s share repurchase authorization as of the end of the second quarter. As of the end of the second quarter, the Company had $91.9 million of cash and cash equivalents, $179.2 million available to borrow under its 2025 Revolving Credit Facility and total debt of $726.3 million. Stores Update The following unaudited table summarizes the Company’s store count activity for the twenty-six weeks ended July 4, 2026: Fiscal 2026 Outlook1 The Company is updating its outlook for the fifty-two weeks ending January 2, 2027 ("fiscal 2026") as follows: Conference Call Information A conference call to discuss the second quarter financial results is scheduled for today, August 6, 2026, at 4:30 p.m. ET. Investors and analysts who wish to participate in the call are invited to dial +1 833 461 5787 (international callers, please dial +1 585 542 9983) approximately 10 minutes prior to the start of the call. Please reference Conference ID 951584171 when prompted. A live webcast of the conference call will be available in the investor relations section of the Company’s website at https://ir.savers.com/events-and-presentations/default.aspx. A recorded replay of the call will be available on the Company’s website shortly after the conclusion of the call and remain available until August 6, 2027. About the Savers® Value Village® family of thrift stores As the largest for-profit thrift operator in the U.S. and Canada for value priced pre-owned clothing, accessories and household goods, our mission is to champion reuse and inspire a future where secondhand is second nature. Learn more about the Savers Value Village family of thrift stores, our impact, and the #ThriftProud movement at savers.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "could," "may," "might," "will," "likely," "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "continues," "projects" or the negative of these terms or other comparable terminology. In particular, statements about future events and similar references to future periods, or by the inclusion of forecasts or projections, the outlook for the Company’s future business, prospects, financial performance, including its fiscal 2026 and/or longer term outlook or financial guidance, and industry outlook are forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the impact on both the supply and demand for the Company’s products caused by general economic conditions, such as the macroeconomic pressures in Canada and/or the U.S., and changes in consumer confidence and spending; the Company’s ability to anticipate consumer demand and to source and process a sufficient quantity of quality secondhand items at attractive prices on a recurring basis; risks related to attracting new, and retaining existing customers, including by increasing acceptance of secondhand items among new and growing customer demographics; risks associated with its status as a "brick and mortar" only retailer and its lack of operations in the growing online retail marketplace; its failure to open new profitable stores, or successfully enter new markets on a timely basis or at all; the risks associated with conducting business internationally, including challenges related to serving customers that are international manufacturers and suppliers, such as transportation and shipping challenges, regulatory risks in foreign jurisdictions (particularly in Canada, where the Company maintains extensive operations) and exchange rate risks, which the Company may not choose to fully hedge; the loss of, or disruption or interruption in the operations of, its centralized processing centers and other offsite processing locations; risks associated with litigation, the expense of defense, and the potential for adverse outcomes; its failure to properly hire and to retain key personnel and other qualified personnel or to manage labor costs; risks associated with the timely and effective deployment, protection, and defense of computer networks and other electronic systems, including e-mail; changes in government regulations, procedures and requirements; its ability to maintain an effective system of internal controls and produce timely and accurate financial statements or comply with applicable regulations; risks associated with heightened geopolitical instability due to the conflicts in Venezuela, the Middle East and Eastern Europe; outbreak of viruses or widespread illness, such as the COVID-19 pandemic, natural disasters or other highly disruptive events and regulatory responses thereto; and each of the other factors set forth under the heading "Risk Factors" in its filings with the United States Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company is not under any obligation (and specifically disclaims any such obligation) to update or alter these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures The Company reports its financial results in accordance with GAAP. Non-GAAP financial measures used by the Company include Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin. The Company has included these non-GAAP financial measures in this press release as they are key measures used by its management and its board of directors to evaluate its operating performance and the effectiveness of its business strategies, make budgeting decisions, and evaluate compensation decisions. Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin are not calculated or presented in accordance with GAAP and have limitations as analytical tools. You should not consider them in isolation, as a substitute for, or superior to, analysis of the Company’s results as reported under GAAP. There are limitations to using non-GAAP financial measures, including those amounts presented in accordance with the Company’s definitions of Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as they may not be comparable to similar measures disclosed by the Company’s competitors, because not all companies and analysts calculate Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin in the same manner. Because of these limitations, you should consider Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including, as applicable, net income and the Company’s other GAAP results. The Company presents Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin because it considers these meaningful measures to share with investors as they best allow comparison of the performance of one period with that of another period. In addition, by presenting Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, the Company provides investors with management’s perspective of the Company’s operating performance. The Company defines Adjusted net income as net income excluding the impact of loss on extinguishment of debt, IPO-related stock-based compensation expense, transaction costs, foreign currency exchange rate impacts, certain other adjustments, the tax effect on the above adjustments and the excess tax shortfall from stock-based compensation. The Company defines Adjusted net income per diluted share as Adjusted net income divided by diluted weighted average common shares outstanding. The Company defines Adjusted EBITDA as net income excluding the impact of interest expense, net, income tax expense, depreciation and amortization, loss on extinguishment of debt, stock-based compensation expense, lease intangible asset expense, transaction costs, foreign currency exchange rate impacts and certain other adjustments. The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage. Constant Currency The Company reports certain operating results on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. The term foreign currency exchange rates refers to the exchange rates used to translate the Company's operating results for all countries where the functional currency is not the USD into the USD. Because the Company is a global company, foreign currency exchange rates used for translation may have a significant effect on its reported results. In general, given the Company's significant operations in Canada, the Company's financial results are affected positively by a weakening of the USD against the CAD and are affected negatively by a strengthening of the USD against the CAD. References to operating results on a constant-currency basis indicate operating results without the impact of foreign currency exchange rate fluctuations. The Company believes disclosure of constant-currency net sales is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of its underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, constant-currency results are not calculated or presented in accordance with GAAP and are not meant to be considered as an alternative or substitute for, or superior to, comparable measures prepared in accordance with GAAP. Constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. During the thirteen weeks ended July 4, 2026, as compared to the thirteen weeks ended June 28, 2025, the USD was constant relative to the CAD and weaker relative to the Australian dollar ("AUD"), which resulted in an overall favorable impact on our operating results. During the twenty-six weeks ended July 4, 2026, as compared to the twenty-six weeks ended June 28, 2025, the USD was weaker relative to the CAD and the AUD, which resulted in a favorable impact on our operating results. The Company calculates constant-currency net sales by translating current period net sales using the average exchange rates from the comparative prior period rather than the actual average exchange rates in effect. SAVERS VALUE VILLAGE, INC.Condensed Consolidated Statements of Operations(All amounts in thousands, except per share amounts, unaudited) SAVERS VALUE VILLAGE, INC.Condensed Consolidated Balance Sheets(All amounts in thousands, unaudited) SAVERS VALUE VILLAGE, INC.Condensed Consolidated Statements of Cash Flows(All amounts in thousands, unaudited) SAVERS VALUE VILLAGE, INC.Supplemental Detail on Net Income Per Share Calculation(Unaudited) The following unaudited table sets forth the computation of net income per basic and diluted share as shown on the face of the accompanying condensed consolidated statements of operations: SAVERS VALUE VILLAGE, INC.Supplemental Detail on Segment Results(Unaudited) The following unaudited tables present net sales and profit by segment. In each table, "Other" is attributable to the Australia Retail and Wholesale operating segments which are not considered reportable segments and have been combined. SAVERS VALUE VILLAGE, INC.Supplemental InformationReconciliation of GAAP to Non-GAAP Financial Measures(Unaudited) The following information relates to non-GAAP financial measures and should be read in conjunction with the investor call to be held on August 6, 2026, discussing the Company’s financial condition and results of operations for the second quarter. The following unaudited table presents a reconciliation of GAAP net income and net income per diluted share to Adjusted net income and Adjusted net income per diluted share for the periods presented: The following unaudited table presents a reconciliation of GAAP net income to Adjusted EBITDA for the periods presented: Constant Currency The Company calculates constant-currency net sales by translating current-period net sales using the average exchange rates from the comparative prior period rather than the actual average exchange rates in effect. The Company’s constant-currency net sales is not a financial measure prepared in accordance with GAAP. The following unaudited table presents a reconciliation of GAAP net sales to constant-currency net sales for the periods presented. In each table, "Other" is attributable to the Australia Retail and Wholesale operating segments which have been combined. Supplemental Metrics In addition to the financial and operational metrics set forth elsewhere in this press release, the Company uses the below supplemental metrics to evaluate the performance of its business, identify trends, formulate financial projections and make strategic decisions. The Company believes these metrics provide useful information to investors and others in understanding and evaluating its results of operations in the same manner as its management team. The following unaudited table summarizes certain supplemental metrics for the periods presented: View source version on businesswire.com: https://www.businesswire.com/news/home/20260806305369/en/ Contacts Investor Contact: Ed [email protected] Media Contact: Edelman Smithfield | 713.299.4115 | [email protected] Savers | 206.228.2261 | [email protected]