Savers Value Village expands margins as Canadian sales recover
The thrift retailer reported a second-quarter adjusted EBITDA margin of 16.6%, up from 11.0% in the previous quarter.
Savers Value Village (SVV), the thrift retailer, reported a second-quarter increase in net sales to $448.2 million.
While the company saw growth, the pace of expansion slowed. Total net sales rose 7.4% year-over-year, a deceleration from the 8.9% growth reported in the first quarter.
Performance varied by region. U.S. comparable store sales growth remained steady at 6.6%, compared with 6.4% in the prior quarter. In Canada, comparable store sales increased 0.8%, recovering from a 0.6% decrease in the first quarter.
Profitability metrics improved as adjusted EBITDA grew for the third consecutive quarter. The adjusted EBITDA margin expanded to 16.6% in the second quarter, compared with 11.0% in the first quarter.
Management attributed some gains to the introduction of ThriftIQ, a proprietary pricing platform. The platform delivered a 100 basis point increase in gross profit dollar growth in pilot stores compared to non-pilot stores.
Savers Value Village updated its fiscal 2026 outlook to reflect first-half performance. The company set a long-term target to return to high-teens adjusted EBITDA margins within three years, expecting annual expansions of 50–100 basis points starting in 2027.
Physical expansion accelerated slightly, with the company adding six new stores in the second quarter compared to three in the first. This brought the total store count to 375 by the end of the period.
In a separate capital move, the company announced a secondary public offering of 15 million shares by selling stockholders. Concurrently, Savers Value Village initiated a $10 million share repurchase funded by cash on hand.