second quarter
Filed Aug 6, 2026Savers Value Village, Inc. Reports Second Quarter Financial Results
Total Company net sales increased 7.4% to $448.2 million, U.S. comparable store sales increased 6.6%, and the Company raised the low end of several fiscal 2026 outlook ranges. Adjusted EBITDA was $74.5 million with a 16.6% margin, while Canada produced more modest 0.8% comparable store sales growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Company net salesGAAP | $448.2 million | – | increased 7.4% |
| Constant-currency net salesnon-GAAP | > $448.2 million | – | increased 7.1% |
| Comparable store salesother | increased 4.4% | – | increased 4.4% |
| Net incomeGAAP | $21.6 million | – | – |
| Net income per diluted shareGAAP | $0.14 per diluted share | – | – |
| Net income marginGAAP | 4.8% | – | – |
| Adjusted net incomenon-GAAP | $22.3 million | – | – |
| Adjusted net income per diluted sharenon-GAAP | $0.14 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $74.5 million | – | a year-over-year increase for the third consecutive quarter |
| Adjusted EBITDA marginnon-GAAP | 16.6% | – | – |
| Pre-opening expensesGAAP | $3.8 million | – | – |
| Cash and cash equivalentsGAAP | $91.9 million | – | – |
| Available to borrow under the 2025 Revolving Credit Facilityother | $179.2 million | – | – |
| Total debtGAAP | $726.3 million | – | – |
| Store countother | 375 stores | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| United Statescomparable store sales increased 6.6%. | net sales increased 11.6% | – | increased 11.6% |
| Canadacomparable store sales increased 0.8%; an earlier Easter in fiscal 2026 positively impacted Canadian comparable store sales by approximately 0.7%. | net sales increased 2.2% | – | increased 2.2% |
fiscal 2026, fifty-two weeks ending January 2, 2027 outlook
- Revenue$1.77 billion to $1.79 billion
- NoteComparable store sales growth over fiscal 2025: 3.0% to 4.0%
- NoteNet income: $67 million to $76 million, or $0.42 to $0.47 per diluted share
- NoteAdjusted net income: $76 million to $85 million, or $0.47 to $0.53 per diluted share
- NoteAdjusted EBITDA: $265 million to $275 million
- NoteCapital expenditures: $125 million to $145 million
- NoteNew store openings: Approximately 25
- NoteAssumes an exchange rate of 1 Canadian dollar (“CAD”) = 0.72 U.S. dollar (“USD”).
- NoteThe Company expects to return to a high-teens adjusted EBITDA margin within the next three years.
- NoteBeginning in 2027, the Company expects to expand Adjusted EBITDA margin 50–100 basis points annually.
Capital returns
- 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.
- The Company opened 6 new stores, ending the second quarter with 375 stores.
What drove it
- Total Company net sales increased 7.4%, driven by U.S. comparable store sales growth of 6.6% and new store contribution.
- ThriftIQ launched in 58 stores over the last year, including most new store openings in the last six months, and helped price more than 25 million items across 45,000 brands.
- In pilot stores, ThriftIQ translated into gross profit dollar growth that was approximately 100 basis points higher compared to non-pilot stores.
- The Company reported a record-setting grand opening in North Carolina.
- The Company plans to continue deployment of ThriftIQ across its U.S. and Canadian locations through the first half of 2028.
Concerns
- Canada comparable store sales increased 0.8%, versus U.S. comparable store sales growth of 6.6%.
- An earlier Easter in fiscal 2026 positively impacted Canadian comparable store sales by approximately 0.7%.
- The Company reported total debt of $726.3 million.
- The outlook notes that the 53rd week in fiscal 2025 resulted in a shift such that fiscal 2026 began a week later than fiscal 2025.
What to watch
- Delivery against fiscal 2026 net sales guidance of $1.77 billion to $1.79 billion and comparable store sales growth guidance of 3.0% to 4.0%.
- The phased ThriftIQ rollout and its deployment across U.S. and Canadian locations through the first half of 2028.
- New-store execution toward approximately 25 fiscal 2026 openings.
- Progress toward a high-teens adjusted EBITDA margin within the next three years and expected Adjusted EBITDA margin expansion of 50–100 basis points annually beginning in 2027.
- The effect of the term-loan repricing, expected to reduce interest expense by approximately $1.8 million for the remainder of fiscal 2026.
Balance sheet and cash flow
- 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.
- 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 store count was 185 in the U.S., 172 in Canada, and 18 in Australia as of July 4, 2026.
Analysis
Savers Value Village reported second-quarter total Company net sales of $448.2 million, up 7.4%, with comparable store sales increasing 4.4%. The U.S. was the principal reported growth contributor, with net sales up 11.6% and comparable store sales up 6.6%. Canada was slower, with net sales up 2.2% and comparable store sales up 0.8%; the Company said an earlier Easter positively affected Canadian comparable store sales by approximately 0.7%.
GAAP net income was $21.6 million, or $0.14 per diluted share, and net income margin was 4.8%. Adjusted net income was $22.3 million, or $0.14 per diluted share. Adjusted EBITDA was $74.5 million and adjusted EBITDA margin was 16.6%; management described this as the third consecutive quarter of year-over-year adjusted EBITDA growth.
Store expansion and technology deployment were central to the period. The Company opened 6 new stores in the quarter and ended with 375 stores, while recording pre-opening expenses of $3.8 million. ThriftIQ had launched in 58 stores over the last year and priced more than 25 million items across 45,000 brands. The Company said pilot stores generated gross profit dollar growth approximately 100 basis points higher than non-pilot stores, and it plans to continue deployment across U.S. and Canadian locations through the first half of 2028.
Capital allocation included repurchases of 1.2 million shares at a weighted average price of $8.10 per share, with $21.7 million remaining under the authorization. The Company also completed a June 2, 2026 term-loan repricing expected to reduce interest expense by approximately $1.8 million for the remainder of fiscal 2026. Period-end liquidity included $91.9 million of cash and cash equivalents and $179.2 million available under the 2025 Revolving Credit Facility, against total debt of $726.3 million.
For fiscal 2026, the Company updated its outlook to $1.77 billion to $1.79 billion of net sales, 3.0% to 4.0% comparable store sales growth, $67 million to $76 million of net income, and $265 million to $275 million of adjusted EBITDA. The current ranges raise the low ends of net sales, comparable store sales growth, adjusted net income, and adjusted EBITDA relative to the guidance table's previous ranges, while the high ends of those ranges are unchanged. Management also targets a return to a high-teens adjusted EBITDA margin within the next three years and expects 50–100 basis points of annual adjusted EBITDA margin expansion beginning in 2027.
Management, verbatim
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.
Mark Walsh, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-year and prior-quarter dollar amounts for total Company net sales.
- Segment net sales dollar amounts for the United States and Canada.
- Gross profit and gross margin.
- Operating income and operating margin.
- Prior-year and prior-quarter net income, diluted EPS, adjusted net income, adjusted diluted EPS, Adjusted EBITDA, and Adjusted EBITDA margin.
- Operating cash flow.
- Free cash flow.
- Capital expenditures for the reported second quarter.
- Income tax expense and effective tax rate.
- Dividend declaration or payment.
- Prior-period cash, revolving credit facility availability, and total debt.
- Detailed debt maturities and leverage metrics.
- Quantitative reconciliation of reported non-GAAP measures in the provided filing text.
- Fiscal 2026 gross margin, operating expenses, and tax-rate guidance.
- A separately provided previous-release outlook section for reported-period performance comparison.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.