Savers Value Village (SVV) Q1 2026 earnings summary

Executive summary

• Net sales rose 8.9% year-over-year to $403.2 million, with U.S. net sales up 11.2% and Canadian net sales up 6.7%, driven by strong U.S. comparable store sales and three new stores opened, totaling 370 locations.

• Adjusted EBITDA increased to $44.5 million (11.0% margin), marking the second consecutive quarter of year-over-year growth.

• Net loss was $5.3 million ($0.03 per diluted share, 1.3% margin), while adjusted net income was $2.5 million ($0.02 per diluted share).

• The company repurchased 1.2 million shares at an average price of $8.51, with $31.2 million remaining on the repurchase authorization.

• Innovation initiatives, including ABP Lite rollout to 85% of the fleet and AI deployment, are enhancing operational efficiency and consumer engagement.

Financial highlights

• Retail sales grew 10.1% to $386.2 million, while wholesale sales declined 12.3% to $17.0 million.

• Cost of merchandise sold as a percentage of net sales decreased 10 bps to 45.4%.

• Operating income increased to $12.5 million (3.1% of sales), up from $10.4 million (2.8%) a year ago.

• Net interest expense decreased 21.7% to $12.7 million due to lower rates and refinancing.

• Net cash provided by operating activities was $18.2 million, up from $0.4 million in the prior year.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: net sales of $1.76–$1.79 billion, comparable store sales growth of 2.5–4.0%, net income of $66–$78 million, adjusted EBITDA of $260–$275 million, and 25 new store openings.

• Capital expenditures expected at $125–$145 million; plan to open approximately 25 new stores.

• Q2 revenue growth expected to be 100–200 bps lower than Q1 due to FX; Q2 adjusted EBITDA growth to mirror Q1.

• Targeting net leverage ratio under 2x by end of next year.

• No material impact anticipated from new global minimum tax rules (Pillar II).