Savers Value Village Reports Strong Q1 2026 Sales Growth as U.S. Momentum Offsets Softer Canada Performance

Savers Value Village, Inc. reported a stronger-than-expected first quarter of fiscal 2026, with net sales rising 8.9% year over year to $403.2 million. The thrift retail operator said growth was supported by solid U.S. comparable store sales, new store openings, and continued demand for value-focused secondhand products. Revenue also beat analyst expectations by about $8.81 million, while adjusted EPS came in at $0.02.

U.S. Business Leads the Quarter

The company’s U.S. segment was the standout performer. U.S. net sales increased 11.2%, while comparable store sales rose 6.4%. Management said this reflected broad consumer interest in affordable apparel, accessories, and household goods. The result suggests that shoppers continue to respond well to the company’s value proposition at a time when many households remain careful with spending.

Canada Shows Mixed Results

Canada delivered sales growth, but performance was softer than in the United States. Canadian net sales increased 6.7%, while constant-currency net sales rose 2.0%. Comparable store sales declined 0.6%, partly due to the timing of Easter, which management said reduced Canadian comparable sales by about 0.7 percentage points.

Profitability Improves Despite Net Loss

Savers Value Village posted a net loss of $5.3 million, equal to $0.03 per diluted share. However, adjusted net income reached $2.5 million, or $0.02 per diluted share. Adjusted EBITDA increased year over year for the second straight quarter to $44.5 million, with an adjusted EBITDA margin of 11.0%.

Store Expansion Remains a Key Growth Strategy

The company opened three new stores during the quarter and ended the period with 370 stores. That total included 182 stores in the United States, 170 in Canada, and 18 in Australia. Management said recent store openings are performing in line with expectations and continue to support the company’s long-term growth plan.

Management Highlights Operational Progress

CEO Mark Walsh said the quarter showed continued progress, especially in adjusted EBITDA growth and U.S. sales strength. CFO Michael Maher also pointed to the company’s newer stores, noting that Savers Value Village has opened 60 stores over the last three years and expects those locations to contribute more as they mature.

Fiscal 2026 Outlook Reaffirmed

The company reaffirmed its full-year fiscal 2026 guidance. Savers Value Village expects net sales between $1.76 billion and $1.79 billion, comparable store sales growth of 2.5% to 4.0%, net income of $66 million to $78 million, and adjusted EBITDA of $260 million to $275 million. It also expects capital expenditures of $125 million to $145 million and approximately 25 new store openings.

Investor Focus

For investors, the main story is steady sales growth, stronger U.S. demand, and improving adjusted profitability. However, the Canadian business remains an area to watch, especially if consumer pressure continues. The company’s reaffirmed outlook shows confidence, but execution on new stores, margins, and comparable sales will likely remain key factors for the rest of 2026.

Conclusion

Savers Value Village entered fiscal 2026 with encouraging momentum. The company’s first-quarter results showed that the secondhand retail model continues to attract customers looking for value, variety, and sustainability. While the company still reported a GAAP net loss, adjusted profit metrics improved, U.S. stores performed well, and management maintained its full-year outlook. Overall, the quarter presented a cautiously positive picture for Savers Value Village as it expands its store base and works to strengthen long-term profitability.

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