Shares rose 12.1% following a quarter that showcased stronger-than-expected U.S. comp growth and accelerating new store profitability, driven in part by the successful rollout of ThriftIQ pricing technology.
- U.S. comps grew 6.6%, supported by both higher basket size and transaction frequency, driving 11.6% sales growth in the region.
- Canadian comps were modest at 0.8%, partially aided by a calendar shift; however, Canadian segment profit grew nearly 16%, with margin expansion of 330 basis points.
- Adjusted EBITDA rose 8% to $75 million, representing 16.6% of sales, reflecting operational leverage and productivity initiatives.
- New store openings totaled six, including a record-opening week store in North Carolina, with new store profitability ramping faster than originally anticipated.
- The rollout of ThriftIQ—leveraging proprietary data for more precise pricing—is contributing to improved sales yields and gross profit, with pilot stores outperforming others by about 100 bps in gross profit growth.
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