Inflection to Adjusted EBITDA Growth
Posted first year-over-year adjusted EBITDA growth in nearly two years, generating $74M of adjusted EBITDA in the quarter with a 15.9% adjusted EBITDA margin, marking an earnings inflection driven by maturing new stores and profit contribution gains in both countries.
Strong U.S. Sales and Comparable Store Performance
U.S. net sales increased 20.6% to $266M (12.6% excl. the 53rd week) with U.S. comparable store sales up 8.8%, driven by both transaction growth and higher average basket; management cites accelerating thrift adoption and broad-based category/region strength.
Solid Overall Revenue Growth
Total net sales increased 15.6% to $465M for the quarter (8.4% excl. the 53rd week and on a constant currency basis); overall comparable store sales were up 5.4%.
Segment Profit Expansion
U.S. segment profit rose to $60M (up $11M year-over-year) and Canada segment profit increased to $43M (up $4M), reflecting on‑plan new store maturation and improved productivity.
Store Growth and New Store Productivity
Opened 10 new stores in the quarter and 26 in 2025; planning ~25 new stores in 2026 (over 20 in the U.S.) across 11 states. Company guidance indicates typical new store economics (~$3M first-year sales ramping to ~$5M by year five; breakeven by year two, ~20% contribution margin by year five).
Loyalty and Customer Mix Shifts
Loyalty program has 6.1M active members; loyalty data shows roughly 40% of U.S. shoppers under 45 and ~45% of households with income above $100K, indicating younger and more affluent customer acquisition and improving customer mix.
Balance Sheet Strength and Capital Allocation
Ended the quarter with $86M in cash and a net leverage ratio of 2.5x; repaid $20M of debt during the quarter, reduced annual interest expense by ~$17M via refinancing, and repurchased 1.1M shares at a $8.75 weighted average price; targeting net leverage under 2x in the coming years.
Innovation and Efficiency Initiatives
Rolling out ABP Lite (asset-light automated book processing) expected to reach ~85% of fleet by end of Q2; investing in autonomous floor scrubbers, AI-enabled HVAC, and other in-store/off-site efficiency initiatives to improve gross margin and labor productivity.
2026 Financial Outlook
Provided FY2026 guidance: net sales $1.76B–$1.79B; comparable store sales +2.5%–4%; adjusted EBITDA $260M–$275M; adjusted net income $73M–$85M; capex $125M–$145M; ~25 new stores. Management expects adjusted EBITDA growth in 2026 with roughly flat adjusted EBITDA margin.