Savers Value Village, Inc. — Second Quarter Fiscal 2026 Earnings Summary

Financial Performance

• Total company net sales increased 7.4% year-over-year to $448.2 million for the thirteen weeks ended July 4, 2026.
• Constant-currency net sales increased 7.1% year-over-year.
• Comparable store sales increased 4.4% year-over-year.
• U.S. net sales increased 11.6% year-over-year, with comparable store sales up 6.6%.
• Canada net sales increased 2.2% year-over-year, with comparable store sales up 0.8%; an earlier Easter positively impacted Canadian comparable store sales by approximately 0.7%.
• Net income was $21.6 million ($0.14 per diluted share), representing a net income margin of 4.8%.
• Adjusted net income was $22.3 million ($0.14 per diluted share).
• Adjusted EBITDA was $74.5 million, a year-over-year increase for the third consecutive quarter, with an Adjusted EBITDA margin of 16.6%.
• For the twenty-six weeks ended July 4, 2026, total net sales were $851.4 million, net income was $16.4 million, and Adjusted EBITDA was $119.0 million.

Guidance and Future Outlook

• Fiscal 2026 net sales guidance updated to $1.77 billion to $1.79 billion (previously $1.76 billion to $1.79 billion).
• Fiscal 2026 comparable store sales growth guidance updated to 3.0% to 4.0% (previously 2.5% to 4.0%).
• Fiscal 2026 net income guidance updated to $67 million to $76 million ($0.42 to $0.47 per diluted share) (previously $66 million to $78 million).
• Fiscal 2026 adjusted net income guidance updated to $76 million to $85 million ($0.47 to $0.53 per diluted share) (previously $73 million to $85 million).
• Fiscal 2026 Adjusted EBITDA guidance updated to $265 million to $275 million (previously $260 million to $275 million).
• Capital expenditures guidance remains $125 million to $145 million.
• New store openings guidance remains approximately 25 for fiscal 2026.
• 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 by 50–100 basis points annually.

Business Segments and Product Lines

• Launched ThriftIQ, a proprietary platform developed with Kaizen Analytix to automate and optimize pricing decisions for millions of items across diverse assortments.
• ThriftIQ has been deployed in 58 stores over the last year, pricing over 25 million items across 45,000 brands.
• Pilot stores utilizing ThriftIQ saw gross profit dollar growth approximately 100 basis points higher than non-pilot stores, driven by increased unit sell-through and larger baskets.
• The platform has reduced grader training time by almost half and helped new stores ramp profitability faster.
• Deployment of ThriftIQ is planned across U.S. and Canadian locations through the first half of 2028.
• U.S. Retail segment profit increased 21.5% year-over-year to $58.96 million for the quarter.
• Canada Retail segment profit increased 15.5% year-over-year to $45.60 million for the quarter.
• Other segment profit decreased 25.8% year-over-year to $6.45 million for the quarter.

Market and Competitive Landscape

• The Company maintains a 40-70% price gap to traditional retail, solidified by the ThriftIQ platform.
• The Company is the largest for-profit thrift operator in the U.S. and Canada.
• The first North Carolina store opened with a record-breaking grand opening.
• New store performance is ahead of expectations.

Risks and Challenges

• Forward-looking statements note risks including general economic conditions, macroeconomic pressures, and changes in consumer confidence and spending.
• Risks include the ability to source and process sufficient quantities of quality secondhand items at attractive prices.
• Risks associated with the "brick and mortar" only retail model and lack of online operations.
• Risks related to international operations, including regulatory risks in Canada, transportation challenges, and exchange rate fluctuations.
• Risks include potential disruption to centralized processing centers, litigation, labor costs, and cybersecurity threats.
• Risks include geopolitical instability, outbreaks of viruses, and natural disasters.

Management Commentary and Tone

• CEO Mark Walsh expressed delight with the results, citing the third consecutive quarter of year-over-year adjusted EBITDA growth.
• Management highlighted continued momentum in U.S. comparable store sales and new store performance exceeding expectations.
• Management described ThriftIQ as the "next phase of transformative innovation" in the business as it continues to reinvent thrift.

Other Key Points

• The Company opened 6 new stores during the second quarter, bringing the total store count to 375.
• Pre-opening expenses for the quarter were $3.8 million.
• On June 2, 2026, the Company completed a repricing amendment to its term loans, reducing rates to 2.50% for Term SOFR Loans and 1.50% for Base Rate Loans.
• The debt 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.
• $21.7 million remained on the share repurchase authorization as of the end of the second quarter.
• As of the end of the second quarter, the Company held $91.9 million in cash and cash equivalents.
• Total debt stood at $726.3 million, with $179.2 million available to borrow under the 2025 Revolving Credit Facility.
• Supplemental metrics showed sales yield of $1.56 per pound processed for the quarter, up from $1.46 in the prior year period.
• On-site donations and GreenDrop accounted for 84.9% of total pounds processed in the quarter, up from 78.5% in the prior year period.