Company: SVV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001883313-25-000066
Chunk: 53

Company: Savers Value Village, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 Notes, resulting in a loss on debt extinguishment of $2.7 million.

During the twenty-six weeks ended June 29, 2024, loss on extinguishment of debt of $4.1 million comprised $0.7 million associated with the repricing of outstanding borrowings under our Term Loan Facility on January 30, 2024 and $3.4 million associated with the redemption of $49.5 million aggregate principal amount of the Senior Secured Notes on March 4, 2024. 

Income tax expense

The following table presents income tax expense:

Twenty-Six Weeks Ended(in thousands)June 28, 2025June 29, 2024$ Change% ChangeIncome tax expense$6,752 $1,801 $4,951 n/m

n/m – not meaningful

During the twenty-six weeks ended June 28, 2025, we recorded income tax expense of $6.8 million on income before income taxes of $20.9 million, resulting in an effective tax rate of 32.2%. During the twenty-six weeks ended June 29, 2024, we recorded income tax expense of $1.8 million on income before income taxes of $11.0 million, resulting in an effective income tax rate of 16.3%. The increase in our effective tax rate resulted primarily from a tax shortfall in stock-based compensation recognized during the twenty-six weeks ended June 28, 2025, compared to a windfall tax benefit recorded during the twenty-six weeks ended June 29, 2024.

31

Segment results

The following table presents net sales and profit by segment:

Twenty-Six Weeks Ended(in thousands)June 28, 2025June 29, 2024$ Change% ChangeNet sales:U.S. Retail$439,598 $399,648 $39,950 10.0 %Canada Retail283,591 283,955 (364)(0.1)%Total segment sales$723,189 $683,603 $39,586 5.8 %Segment profit:U.S. Retail$87,511 $88,679 $(1,168)(1.3)%Canada Retail$64,791 $78,791 $(14,000)(17.8)%

U.S. Retail

U.S. Retail sales increased by $40.0 million, or 10.0%, during the twenty-six weeks ended