Company: SVV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001883313-25-000101
Chunk: 63

Company: Savers Value Village, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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2021 Term Loan Facility on January 30, 2024 and $3.4 million associated with the redemption of $49.5 million aggregate principal amount of the Notes on March 4, 2024.

Other expense (income), net

The following table presents other expense (income), net:

Thirty-Nine Weeks Ended(in thousands)September 27, 2025September 28, 2024$ Change% ChangeOther expense (income), 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