Savers Value Village (SVV) Q2 2026 earnings summary

Executive summary

• Net sales rose 7.4% year-over-year to $448.2 million, with U.S. comparable store sales up 6.6% and Canadian comps up 0.8%; adjusted EBITDA reached $74.5 million (16.6% margin), marking the third consecutive quarter of year-over-year growth.

• U.S. segment led growth with an 11.6% sales increase, while Canada saw a 2.2% sales increase; six new stores opened, including a record-breaking location in North Carolina.

• ThriftIQ, a proprietary pricing platform, is now operational in 58 stores, driving higher sales yield, gross profit, and faster new store profitability.

• Continued broad-based growth across categories, regions, and demographics, with strong traction among younger and higher-income cohorts.

• 1.2 million shares repurchased at an average price of $8.10 during the quarter.

Financial highlights

• Total net sales increased 7.4% year-over-year to $448.2 million; U.S. net sales up 11.6% to $255.3 million, Canada net sales up 2.2% to $158.3 million.

• Comparable store sales rose 4.4% overall; U.S. comps up 6.6%, Canada comps up 0.8%.

• Adjusted EBITDA grew to $74.5 million (16.6% of sales); GAAP and adjusted net income both $22.3 million ($0.14 per diluted share); net income margin was 4.8%.

• Cost of merchandise sold as a percentage of net sales decreased 170 basis points to 43.1%.

• Operating income increased 24.3% to $42.2 million (9.4% of sales); cash and cash equivalents at quarter-end were $91.9 million.

Outlook and guidance

• Fiscal 2026 net sales expected between $1.77–$1.79 billion, with comparable store sales growth of 3–4%.

• Adjusted EBITDA guidance raised to $265–$275 million; adjusted net income forecasted at $76–$85 million ($0.47–$0.53 per diluted share).

• Approximately 25 new store openings planned for fiscal 2026; capital expenditures of $125–$145 million.

• Net leverage ratio targeted under 2x by end of next year; effective tax rate ~28%.

• Q3 revenue growth expected between Q1 and Q2 levels, with comp sales moderating and adjusted EBITDA modestly below Q2 due to timing of new store openings.