Savers Value Village, Inc. operates retail stores across the United States, Canada, and Australia, focusing on the sale of pre-owned merchandise. These ...
Savers Value Village, Inc. is one of North America’s largest for-profit thrift and second-hand merchandise retailers. Founded by Bill Ellison in 1954 in San Francisco, the company has developed from a local thrift-store operation into a multi-brand retail platform with stores across the United States, Canada, and Australia. Its principal ...Savers Value Village, Inc. is one of North America’s largest for-profit thrift and second-hand merchandise retailers. Founded by Bill Ellison in 1954 in San Francisco, the company has developed from a local thrift-store operation into a multi-brand retail platform with stores across the United States, Canada, and Australia. Its principal banners include Savers, Value Village, Village des Valeurs, Unique, and 2nd Avenue. The company is headquartered at 11400 S.E. 6th Street, Bellevue, Washington, and its common stock trades on the New York Stock Exchange under the symbol SVV. Mark T. Walsh has served as chief executive officer since October 2019 and is a member of the company’s board.
The company’s merchandise model is centered on acquiring donated and other second-hand goods through nonprofit partners and related sourcing channels. Product categories include clothing, footwear, accessories, textiles, bedding, bath items, housewares, books, furniture, jewelry, electronics, toys, and miscellaneous household products. Merchandise is received, sorted, processed, selected, priced, and placed into stores for sale to retail customers. Some goods may also be sold through wholesale or other secondary channels when they are not suitable for the company’s retail assortment. This sourcing approach gives Savers Value Village access to a broad and continually changing inventory while supporting its stated mission of championing reuse.
The company’s major operating costs include store labor, merchandise processing and distribution, occupancy expenses, transportation, utilities, technology, corporate overhead, marketing, and maintenance. Unlike a conventional retailer, its merchandise acquisition economics are closely linked to nonprofit relationships and collection operations rather than traditional manufacturer purchase orders. As a result, product assortment, processing productivity, pricing discipline, store traffic, donation volumes, and resale rates are important drivers of gross margin and profitability. Capital expenditures are directed primarily toward new stores, relocations, remodels, distribution infrastructure, information systems, and maintenance of the existing store base.
Based on the supplied trailing-twelve-month data, Savers Value Village reported approximately $1.88 billion in market capitalization, enterprise value of about $2.52 billion, a gross margin of 74.4%, EBITDA margin of 11.5%, operating profit margin of 7.7%, and net profit margin of 1.4%. The data also indicates revenue per share of $11.328, operating cash flow per share of $1.203, and free cash flow per share of $0.383. Its enterprise-value-to-EBITDA multiple was approximately 12.6, while net debt to EBITDA was approximately 3.2, indicating meaningful financial leverage. The reported current ratio of 0.841 and interest coverage ratio of 2.326 suggest that liquidity and debt-service capacity remain important considerations. The company reported no dividend in the supplied data.
Savers Value Village’s strategic opportunity is to expand its store network, improve comparable-store productivity, increase the volume and quality of reusable goods diverted from landfills, strengthen nonprofit partnerships, and benefit from consumer interest in value, sustainability, vintage merchandise, and circular retail. Key risks include wage and occupancy inflation, merchandise-supply variability, execution costs for new stores, competition from other thrift and off-price retailers, changing consumer spending, leverage, and the labor-intensive nature of sorting and processing second-hand goods.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.7B
+9.2%
+11.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$22.6M
-22.0%
+511.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+79.2%
+40.3%
-82.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+7.4%
-12.7%
+205.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.3%
-28.6%
+469.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$48.6M
+71.3%
+553.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+2.9%
+56.8%
+508.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
317.1%
+2.6%
-1.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.81x
-18.9%
+7.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, welcome to Savers Value Village's conference call to discuss financial results from the second quarter ending July 4, 2026. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Introductions will follow at that time. Please note that this call is being recorded. A replay of this call and related materials will be available on the company's investor relations website. The comments made during the call and the Q&A that follows are copyrighted by the company and cannot be reproduced without written authorization from the company. Certain comments made during this call may constitute forward-looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from expectations or historical performance. Please review the disclosure on forward-looking statements included in the company's earnings release and filings with the SEC for a discussion of these risks and uncertainties. Please be advised that statements are current only as of the date of this call. While the company may choose to update these statements in the future, it is under no obligation to do so unless required by applicable law or regulation. The company may also discuss certain non-GAAP financial measures. A reconciliation of each of the historical non-GAAP measures to the most directly comparable GAAP financial measure can be found in today's earnings release and SEC filings. Joining from management on today's call are Mark Walsh, Chief Executive Officer, Jubran Tanious, President and Chief Operating Officer, Michael Maher, Chief Financial Officer, Ed Yruma, Vice President of Investor Relations and Treasury. Mr. Walsh, you may go ahead, sir.
Mark Walsh: Thank you. Good afternoon, everyone. We appreciate you joining us today. Our second quarter results reinforce our confidence in the power of the model as we continued our earnings inflection with a third consecutive quarter of year-over-year adjusted EBITDA growth. U.S. comp growth remains broad-based, profits increased in both major markets. New store profitability has started to ramp ahead of our original expectations. Together with ThriftIQ and our broader productivity agenda, this gives us a sustained path back toward high teens adjusted EBITDA margins. Let me start with a few highlights from the quarter. Sales at our U.S. business grew 11.6%, with comps up 6.6%, driven by both average basket and transactions. Secular adoption of thrift remains strong. Our comp continues to be broad-based across categories, regions, and demographics. In Canada, comps increased 0.8% during the quarter, reflecting a roughly 70 basis point benefit from the Easter shift. Despite the limited top-line growth, we grew Canadian segment profit almost 16% and expanded segment profit margin by 330 basis points, once again showing the impact of our productivity and profit improvement initiatives. …