Savers Value Village, Inc. (SVV) Earnings

Management highlights

### Core Quarterly Performance Highlights - Marked the third consecutive quarter of year-over-year adjusted EBITDA growth, confirming the company's earnings inflection - U.S. comparable sales growth is broad-based across categories, regions, and demographic cohorts; younger and higher-income consumers are the fastest growing customer groups - New store profitability is ramping ahead of original management expectations, with more than half of 2025's new store class already generating positive four-wall contribution ### Thrift IQ Innovation Initiative - Thrift IQ is a proprietary data-driven pricing platform that eliminates subjective grading: team members only identify brand, and the algorithm sets pricing based on brand, category, seasonality, and historical sell-through data, built from over 25 million priced items spanning 45,000 brands - The platform is currently live in 58 stores across the U.S. and Canada, delivering 100 basis points higher gross profit dollar growth in pilot stores compared to non-pilot locations, while maintaining average prices that are the same or lower than the existing fleet (still 40% to 70% below traditional retail prices) - Thrift IQ cuts new employee training time in half, improves pricing consistency, and supports faster new store profitability ramps; rollout will be phased, starting with offsite processing facilities followed by store locations ### New Store Expansion - 6 new stores opened in Q2 2026 (4 U.S., 2 Canada), with the North Carolina opening delivering the highest opening week sales in company history - Full-year 2026 plan remains 25 total new store openings, with more than 20 in the U.S. across 11 states, including the company's first location in Tennessee opening later this year; new store expansion remains the highest return use of capital - Site selection, dedicated pre-opening support, integrated local marketing, and Thrift IQ have all improved new store performance, with a strong pipeline already built out for 2027 and 2028 ### Operational & Capital Updates - Onsite donation penetration (including GreenDrop) reached 84.9% of total goods processed in Q2, up from 78.5% year-over-year; onsite donations are the company's highest quality and most cost-efficient supply source, with room for long-term continued growth - Debt refinancing and term loan repricing over the past year reduced annualized interest expense by approximately $20 million; the company repurchased 1.2 million shares in Q2 at a weighted average price of $8.10 - Capital allocation priorities are: 1) organically fund new store growth, 2) pay down debt to reach a net leverage ratio under 2.0x by the end of 2027, 3) opportunistically repurchase shares

Guidance

- Management updated full-year 2026 guidance, raising the lower bound of the adjusted EBITDA range to reflect stronger than expected first half performance; the new guidance ranges are: - Net sales: $1.77 billion to $1.79 billion - Comparable store sales growth: 3% to 4% - Net income: $67 million to $76 million (42 to 47 cents per diluted share) - Adjusted net income: $76 million to $85 million (47 to 53 cents per diluted share) - Adjusted EBITDA: $265 million to $275 million - Capital expenditures: $125 million to $145 million - Effective tax rate: ~28% (27% for adjusted net income) - For Q3 2026, management expects total revenue growth between Q1 and Q2 levels, with comp sales growth moderating slightly due to lapping stronger year-ago comparisons. Adjusted EBITDA is expected to be modestly below Q2 levels due to a shift in the timing of new store openings and associated pre-opening expenses from Q2 to Q3, with 8 new stores planned for Q3 - Long-term, management expects the combination of Thrift IQ, new store maturation, and existing profit initiatives to drive 50 to 100 basis points of annual adjusted EBITDA margin expansion starting in 2027, with a return to high-teens adjusted EBITDA margins within the next three years. Thrift IQ's contribution will build as deployment scales, with full annualization expected in 2028 and beyond

Segment performance

For the second quarter ending July 4, 2026, total net sales increased 7.4% to $448 million. The U.S. segment generated net sales of $255 million, an 11.6% year-over-year increase, accounting for 56.9% of total net sales. U.S. comparable store sales grew 6.6%, driven by growth in both average transaction value and customer transactions. U.S. segment profit was $59 million, a $10 million year-over-year increase, fueled by comparable store profit gains and faster new store maturation. The Canada segment generated net sales of $158 million, a 2.2% year-over-year increase, accounting for 35.3% of total net sales. Canada comparable store sales increased 0.8% (including a 70 basis point benefit from an Easter holiday shift). Canada segment profit grew 16% year-over-year to $46 million, a $6 million increase, with segment profit margin expanding 330 basis points due to operational efficiency initiatives.

Risks & headwinds

- The macroeconomic environment in Canada remains stable but sluggish, with continued pressure on lower-income household consumer spending, and management expects roughly flat comparable sales for the Canadian segment in the near term - Thrift IQ is a transformational operational change, so management is moving deliberately with change management to ensure successful full-scale deployment - New stores entering new markets start with lower onsite donation penetration than infill locations in existing markets, which is baked into planning but creates temporary margin pressure during early maturation - Comp growth will moderate in the back half of 2026 as the company laps stronger year-ago comparables

Analyst Q&A

• Q: What are the components and phasing of the three-year path to high-teens EBITDA margins, and how will Thrift IQ contribute to the 50-100bps annual expansion target? /

  A: Margin expansion will come from a balanced combination of innovation (led by Thrift IQ), faster new store profitability ramps, ongoing comp margin leverage, and other profit initiatives, with overlap between these areas. Thrift IQ's contribution will scale with deployment: rollout continues through the back half of 2026, all of 2027, and into early 2028, with full annualization starting in 2028. Management expects Thrift IQ to contribute to the lower end of the 50-100bps range in 2027, building to the higher end in subsequent years.

• Q: What have been the customer and profit drivers of Thrift IQ's 100bps gross profit outperformance in pilot stores? What is the step change from past pricing practices? /

  A: Historically, pricing relied on subjective team member grading of item quality, leading to inconsistent pricing for identical items. Thrift IQ removes subjectivity: team members only identify the brand, and the algorithm sets prices based on historical sell-through, brand, and seasonality, creating far more consistent customer pricing. The 100bps gross profit gain comes from a mix of higher sales yield, higher unit sell-through, and larger baskets, with average prices remaining the same or lower than non-pilot stores. The benefit builds as deployment scales.

• Q: What is the outlook for Canadian margin improvement, and what drivers are supporting recent gains? /

  A: Canadian margins are improving from three core drivers: tight production management that boosts sales yields, ongoing offsite processing efficiency gains that lower unit costs and improve sales yields, and robust onsite donation growth that outpaces sales growth and reduces merchandise costs. Going forward, most new store growth will shift to the U.S., reducing the temporary margin drag from new Canadian stores, so management expects Canadian contribution margins to remain above U.S. levels and potentially improve further for the foreseeable future.

• Q: Does faster new store profitability ramp change the new store investment model, and will you increase the annual opening pace from 25 stores? /

  A: It is still early, but observed faster ramping does support improved new store economics, and management plans to refresh and share the updated model in future disclosures. The company is comfortable with the current 25 store per year pace, and has a strong pipeline of attractive sites filling out through 2028. Management prioritizes ensuring sufficient local supply (centered on onsite donations) before entering new markets, and will only open stores that meet the required return threshold of roughly double the cost of capital.