Company: SVV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001883313-25-000101
Chunk: 116

Company: Savers Value Village, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 net$137 $(222)$359 n/m

n/m – not meaningful

Other expense (income), net is comprised primarily of miscellaneous income and expenses not directly related to our core operating activities.

Income tax expense

The following table presents income tax expense:

Thirty-Nine Weeks Ended(in thousands)September 27, 2025September 28, 2024$ Change% ChangeIncome tax expense$3,426 $15,567 $(12,141)(78.0)%Effective tax rate94.7 %33.5 %

We estimate an annual projected effective tax rate for the fiscal year to determine income tax expense or benefit in the interim periods. The increase in our effective tax rate during the thirty-nine weeks ended September 27, 2025, compared to the thirty-nine weeks ended September 28, 2024, is primarily due to a decrease in income before income taxes. This reduction amplifies the relative impact of permanent tax differences - such as Section 162(m) excess compensation, tax shortfall in stock-based compensation and change in valuation allowance - which do not vary directly with income and therefore have a disproportionate effect on the effective tax rate in periods of lower profitability.

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Segment results

The following table presents net sales and profit by segment:

Thirty-Nine Weeks Ended(in thousands)September 27, 2025September 28, 2024$ Change% ChangeNet sales:U.S. Retail$674,310 $612,118 $62,192 10.2 %Canada Retail443,199 435,841 7,358 1.7 %Total segment sales$1,117,509 $1,047,959 $69,550 6.6 %Segment profit:U.S. Retail$135,467 $133,471 $1,996 1.5 %Canada Retail$110,127 $123,771 $(13,644)(11.0)%

U.S. Retail

U.S. Retail sales increased by $62.2 million, or 10.2%, during the thirty-nine weeks ended September 27, 2025, compared to the thirty-nine weeks ended September 28, 2024. The increase in U.S. Retail sales resulted from a 5.8% increase in comparable store sales, as well as growth in our store base. The increase in comparable store sales was driven by higher transactions and average basket.

U.S. Retail segment