Savers Value Village Q2 Earnings Call Highlights

Savers Value Village Q2 Earnings Call Highlights 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. 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. Second-Quarter Sales and 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. 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. 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.