You should read the following discussion and analysis of the financial condition and results of operations of Savers Value Village, Inc. in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q (the “Quarterly Report”) and our audited consolidated financial statements for the 53 weeks ended January 3, 2026 (“fiscal 2025”) and related notes included in our Annual Report on Form 10-K filed with the SEC on February 20, 2026 (our “Annual Report”). Unless the context otherwise requires, all references in this section to “Savers Value Village”, “the Company”, “we”, “us” or “our” refer to the business of Savers Value Village, Inc. This discussion contains forward-looking statements that involve risks and uncertainties about our business and operations and reflect our plans, estimates and beliefs. Our actual results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part I, Item 1A “Risk Factors” in our Annual Report or in other parts of this Quarterly Report. Overview We are the largest for-profit thrift operator in the United States (“U.S.”) and Canada based on number of stores and operated a total of 375 stores as of July 4, 2026 under the Savers®, Value Village®, Value Village Boutique™, Village des ValeursMD, Unique® and 2nd Ave.® banners. We are committed to redefining secondhand shopping by providing one-of-a-kind, low-priced merchandise ranging from quality clothing to home goods in an exciting treasure-hunt shopping environment. We purchase secondhand textiles (e.g., clothing, bedding and bath items), shoes, accessories, housewares, books and other goods from our non-profit partners (“NPPs”). We then process, select, price, merchandise and sell these items in our stores. Items that are unsuited for or unsold at retail stores are marketed to wholesale customers who reuse or repurpose the items they purchase from us. We believe our hyper-local and socially responsible procurement model, industry-leading and innovative operations, differentiated value proposition and deep relationships with our customers distinguish us from other secondhand and value-based retailers. Our business model is rooted in sustainability and contributing to the communities we serve, with a mission to positively impact our stakeholders: thrifters, NPPs and their donors, our team members and our stockholders. As a leader and pioneer of the for-profit thrift category, we seek to positively impact the environment by reducing waste and extending the life of reusable goods. The vast majority of the clothing and textiles we source is sold to our retail or wholesale customers. We offer a dynamic, ever-changing selection of items, with an average unit retail price (“AUR”) of approximately $5. Our most engaged customers are members of our Super Savers Club® loyalty program. As of January 3, 2026, we had 6.1 million total active members enrolled in our U.S. and Canadian loyalty programs who shopped with us during fiscal 2025 and drove 72.7% of retail sales during the same period. We have innovated and invested in the development of significant operational expertise in order to integrate the three highly complex parts of thrift operations—supply and processing, retail and sales to wholesale markets. Our business model enables us to provide value to our NPPs and our customers, while driving attractive profitability and cash flow. Our strategy is to locally source our merchandise by purchasing secondhand items donated to our NPPs, which provides them with revenue to support their community-focused missions. This also aids in creating a broad and diverse selection for our customers, fosters a sense of community, and reduces transportation costs and emissions typically associated with the production and distribution of new merchandise. While purchases made by our customers in our stores do not directly benefit any NPP, we pay a market-competitive contractual rate to purchase donated items. We source our merchandise primarily through three distinct and strategic procurement models: (i) on-site donations (“OSDs”), (ii) GreenDrop locations and (iii) delivered supply. Increasing the proportion of OSDs and GreenDrop as a percentage of total supply is desirable as donations from these sources are generally of higher quality and collectively have a contractually lower cost than product sourced through other channels, which benefits sales yield, and ultimately, our gross product margin. OSDs and GreenDrop are collectively the largest part of our supply mix, accounting for 84.9% and 78.5% of our total pounds processed for the thirteen weeks ended July 4, 2026 and June 28, 2025, respectively. OSDs and GreenDrop accounted for 80.6% and 76.3% of our total pounds processed for the twenty-six weeks ended July 4, 2026 and June 28, 2025, respectively. •OSDs: Donations of items by individuals to our NPPs, made at Community Donation Centers (“CDCs”) located at our stores. We operate as a registered professional fundraiser where required, accepting donations on behalf of our NPPs. Each store is specifically designated as an OSD location for a particular NPP, such that all donations received at the CDC are credited to that NPP. •GreenDrop locations: Attended donation stations that collect donations of items made by individuals to our NPPs at well-signed brick and mortar or trailer locations conveniently located closer to attractive donor neighborhoods in the same market as a store. On behalf of our NPPs, we solicit, collect and deliver items from our GreenDrop locations to our stores and Centralized Processing Centers (“CPCs”). •Delivered supply: Delivered supply comprises donations delivered either to our CPCs or directly to our stores. This channel supplements OSDs and GreenDrop collections by addressing remaining assortment and volume needs necessary to offer customers a full and balanced product mix. Donations may be collected by our NPPs through neighborhood collections, donation drives, or similar methods, or we may solicit, collect and deliver items on behalf of our NPPs. We leverage an analytical platform to measure the sales yield and product margin of each stream of supply in our stores. In general, this tool is either used to periodically confirm the performance of an existing stream of supply or to evaluate the performance of a new source of supply. Our business model is predicated on sourcing and selling quality secondhand items to our customers in local communities. We are able to meet customer demand given our deep relationships with an extensive network of NPPs that is unmatched in the thrift industry. The majority of our retail stores have a dedicated space that handles the processing of soft and hard goods that provide the inventory to be sold on our retail sales floors. During the thirteen weeks ended July 4, 2026, we processed 282 million pounds of secondhand goods, compared to 279 million during the thirteen weeks ended June 28, 2025. During the twenty-six weeks ended July 4, 2026, we processed 548 million pounds of secondhand goods, compared to 541 million during the twenty-six weeks ended June 28, 2025. We are continuing to implement our offsite processing strategy, which is an important component of our operating model and supports store growth by enabling processing at larger-scale facilities and distribution to multiple stores in a local market. The processing of donations under this strategy can occur at offsite warehouse facilities, stores with surplus processing capacity or at CPCs. Our store experience directly reflects our mission to make secondhand second nature. We deliver a well merchandised environment that maximizes customer engagement and supports a core tenet for any thrifter—the treasure hunt. Our stores offer a wide selection of quality items across clothing, home goods, books and other items. Our sales floor inventory is also regularly rotated and refreshed, providing our customers with an extensive, ever-changing selection at tremendous value. In support of our efforts to extend the life of reusable goods and recover a portion of the cost of acquiring our supply of secondhand items, we sell the majority of textile items that are unsuited for or unsold at retail stores to our wholesale customers (predominantly comprised of textile graders and small business owners) who supply local communities across the globe with gently used, affordable items like clothing, housewares, toys and shoes. Textiles not suitable for reuse as secondhand clothing can be repurposed into other textile items (e.g., wiping rags) and post-consumer fibers (e.g., insulation, carpet padding), further reducing waste. Financial Highlights The following highlights our financial results for the thirteen weeks ended July 4, 2026 (the “second quarter”). Comparisons are to the thirteen weeks ended June 28, 2025: •Total Company net sales increased 7.4% to $448.2 million; constant-currency net sales increased 7.1%; and comparable store sales increased 4.4%. •For the U.S., net sales increased 11.6% and comparable store sales increased 6.6%. •For Canada, net sales increased 2.2%; constant-currency net sales increased 2.2%; and comparable store sales increased 0.8%. An earlier Easter in fiscal 2026 positively impacted Canadian comparable store sales by approximately 0.7%. •Net income was $21.6 million, or $0.14 per diluted share. Net income margin was 4.8%. •Adjusted net income was $22.3 million, or $0.14 per diluted share. •Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was $74.5 million and Adjusted EBITDA margin was 16.6%. 20 Table of Contents Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, as well as amounts presented on a constant-currency basis, are not measures recognized under U.S. GAAP. For additional information on our use of non-GAAP financial measures and a reconciliation to the nearest GAAP measure, see “Non-GAAP Financial Measures” below. Capital Allocation Consistent with its balanced and disciplined approach to capital allocation, the Company continued to take actions during the second quarter to reinvest in its business, strengthen its balance sheet and return capital to stockholders. •The Company opened 6 new stores, ending the second quarter with 375 stores, and recorded pre-opening expenses of $3.8 million. •On June 2, 2026, the Company completed a repricing amendment to its existing term loans, reducing the applicable rate to 2.50% for Term SOFR Loans and 1.50% for Base Rate Loans. This repricing is expected to reduce interest expense by approximately $1.8 million for the remainder of fiscal 2026 and $3.6 million on an annualized basis. •The Company repurchased 1.2 million shares during the second quarter at a weighted average price of $8.10 per share. There was $21.7 million remaining on the Company’s share repurchase authorization as of the end of the second quarter. •As of the end of the second quarter, the Company had $91.9 million of cash and cash equivalents, $179.2 million available to borrow under its 2025 Revolving Credit Facility and total debt of $726.3 million. Recent Developments Geopolitical Environment Recent events in the Middle East, including the conflict involving Iran, and political and economic instability in Venezuela, have contributed to volatility in global energy markets. While the Company is not directly impacted by import disruptions due to its hyper-local procurement model, these conditions may increase transportation costs and, in periods of perceived or actual unfavorable economic conditions, lead consumers to reallocate discretionary spending which may adversely impact demand for the Company’s products and its profitability. 21 Table of Contents Key Performance Indicators We use the key performance indicators below to evaluate the performance of our business, identify trends, formulate financial projections and make strategic decisions. We believe these metrics provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as our management team. The following table summarizes certain key performance indicators for the periods indicated: Thirteen Weeks Ended Twenty-Six Weeks Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Comparable Store Sales (1) U.S. 6.6 % 6.2 % 6.5 % 5.2 % Canada 0.8 % 2.6 % 0.2 % 1.7 % Total (2) 4.4 % 4.6 % 4.0 % 3.7 % Other Metrics Pounds processed (lbs mm) 282 279 548 541 OSDs and GreenDrop as a % of total pounds processed 84.9 % 78.5 % 80.6 % 76.3 % Sales yield (1) $ 1.56 $ 1.46 $ 1.52 $ 1.42 (1)The 53rd week in fiscal 2025 resulted in a shift such that fiscal 2026 began a week later than fiscal 2025. Accordingly, these key performance indicators are calculated by aligning the sales weeks in fiscal 2026 to the equivalent sales weeks in fiscal 2025. (2)Total comparable store sales includes our Australia retail locations, in addition to the U.S. and Canada. Comparable store sales Comparable store sales is the percentage change in comparable store sales over the comparable period in the prior fiscal year. Comparable store sales is defined as sales by stores that have been in operation for all or a portion of 14 months. Comparable store sales is measured in local currency for Canada, while total comparable store sales is measured on a currency neutral basis. Comparable store sales provides us with visibility into top-line performance on a like-for-like basis excluding new stores as defined above and excluding all closed stores as of the end of the current reporting period. We believe investors can use this metric to assess our ability to increase comparable store sales over time. During the thirteen weeks ended July 4, 2026, comparable store sales increased 4.4%, primarily reflecting higher average basket, and to a lesser extent, transactions. In addition, an earlier Easter in fiscal 2026 positively impacted Canadian comparable store sales by approximately 0.7% as several of our Canadian stores were closed for Good Friday. During the thirteen weeks ended June 28, 2025, comparable store sales increased 4.6%, primarily reflecting higher average basket and transactions. During the twenty-six weeks ended July 4, 2026, comparable store sales increased 4.0%, primarily reflecting higher average basket and, to a lesser extent, transactions. During the twenty-six weeks ended June 28, 2025, comparable store sales increased 3.7%, primarily reflecting higher average basket and transactions. Pounds processed and supply mix We define pounds processed as the total number of pounds of goods processed during the period, excluding furniture and other large items. This metric is an indicator of the amount of secondhand goods processed during the period and is typically a key driver of top-line sales growth. We process inventory by receiving goods directly from our NPPs or through OSDs and GreenDrop, sorting them and placing them on the sales floor. Increasing the proportion of OSDs and GreenDrop as a percentage of total supply is desirable, as donations from these sources are generally of higher quality and collectively have a contractually lower cost than product sourced through other channels, which benefits sales yield, and ultimately, our gross product margin. We believe investors can use these metrics to assist in their evaluation of our sales growth, sales yield and to an extent, gross product margin. 22 Table of Contents During the thirteen weeks ended July 4, 2026 and June 28, 2025, we processed 282 million and 279 million pounds of supply, respectively, of which 84.9% and 78.5% was comprised of supply from OSDs and GreenDrop, respectively. During the twenty-six weeks ended July 4, 2026 and June 28, 2025, we processed 548 million and 541 million pounds of supply, respectively, of which 80.6% and 76.3% was comprised of supply from OSDs and GreenDrop, respectively. Sales yield We define sales yield as retail sales generated per pound processed on a currency neutral and comparable store basis. We believe investors can use this metric as an indicator of the quality of goods we source, because when the quality is high, we are able to sell more items and/or sell items at higher prices from the volume we process than we would otherwise. Sales yield for the thirteen weeks ended July 4, 2026 was $1.56 compared to $1.46 for the thirteen weeks ended June 28, 2025. The 6.8% increase in sales yield primarily reflects higher average price points and an increase in items sold per pound processed. Sales yield for the twenty-six weeks ended July 4, 2026 was $1.52 compared to $1.42 for the twenty-six weeks ended June 28, 2025. The 7.0% increase in sales yield primarily reflects higher average price points and an increase in items sold per pound processed. Number of stores Our number of stores provides us visibility into the scale of our operations and is viewed as a key driver of long-term growth. We believe investors can use this metric to assess our ability to open new stores in high-growth markets. The following table summarizes the Company’s store count activity for the twelve months ended July 4, 2026: U.S. Canada Australia Total June 28, 2025 171 167 16 354 New stores 20 7 2 29 Closures (6) (2) 0 (8) July 4, 2026 185 172 18 375 23 Table of Contents Results of Operations The following table sets forth our results of operations for each of the periods presented: Thirteen Weeks Ended Twenty-Six Weeks Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 (in thousands) Amount % of Sales Amount % of Sales Amount % of Sales Amount % of Sales Net sales $ 448,219 100.0 % $ 417,208 100.0 % $ 851,414 100.0 % $ 787,353 100.0 % Operating expenses: Cost of merchandise sold, exclusive of depreciation and amortization 193,304 43.1 186,878 44.8 376,453 44.2 355,381 45.1 Salaries, wages and benefits 85,478 19.1 86,993 20.8 171,863 20.2 171,795 21.9 Selling, general and administrative 101,715 22.7 88,412 21.2 200,168 23.5 175,491 22.3 Depreciation and amortization 25,473 5.7 20,904 5.0 48,228 5.7 40,262 5.1 Total operating expenses 405,970 90.6 383,187 91.8 796,712 93.6 742,929 94.4 Operating income 42,249 9.4 34,021 8.2 54,702 6.4 44,424 5.6 Other expense (income): Interest expense, net 13,022 2.9 15,985 3.8 25,691 3.0 30,799 3.9 (Gain) loss on foreign currency, net (3,462) (0.8) (8,611) (2.0) 2,509 0.3 (10,242) (1.3) Loss on extinguishment of debt 1,280 0.3 — — 1,280 0.2 2,718 0.3 Other (income) expense, net (66) — 37 — 138 — 203 — Other expense, net 10,774 2.4 7,411 1.8 29,618 3.5 23,478 2.9 Income before income taxes 31,475 7.0 26,610 6.4 25,084 2.9 20,946 2.7 Income tax expense 9,844 2.2 7,693 1.9 8,716 1.0 6,752 0.9 Net income $ 21,631 4.8 % $ 18,917 4.5 % $ 16,368 1.9 % $ 14,194 1.8 % 24 Table of Contents Thirteen Weeks Ended July 4, 2026 compared to the Thirteen Weeks Ended June 28, 2025 Net sales The following table presents net sales: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Retail sales $ 430,239 $ 396,430 $ 33,809 8.5 % Wholesale sales 17,980 20,778 (2,798) (13.5) % Total net sales $ 448,219 $ 417,208 $ 31,011 7.4 % Retail sales increased by $33.8 million, or 8.5%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase in retail sales resulted primarily from growth in our store base and a 4.4% increase in comparable store sales. Cost of merchandise sold, exclusive of depreciation and amortization The following table presents cost of merchandise sold, exclusive of depreciation and amortization (“cost of merchandise sold”): Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Cost of merchandise sold, exclusive of depreciation and amortization $ 193,304 $ 186,878 $ 6,426 3.4 % Cost of merchandise sold decreased 170 basis points to 43.1% of net sales during the thirteen weeks ended July 4, 2026, compared to 44.8% for the thirteen weeks ended June 28, 2025. The 170 basis point decrease primarily reflects improvement in cost of merchandise sold as a percentage of net sales on comparable store sales due to increased operating efficiency and the favorable impact of year-over-year growth in OSDs, partially offset by new store dilution. Personnel costs classified within cost of merchandise sold were $119.7 million during the thirteen weeks ended July 4, 2026, compared to $113.5 million during the thirteen weeks ended June 28, 2025. The $6.2 million increase in personnel costs resulted primarily from growth in our store base and higher wage rates, partially offset by labor efficiency gains. Salaries, wages and benefits The following table presents salaries, wages and benefits: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Retail and wholesale $ 58,984 $ 55,501 $ 3,483 6.3 % Corporate 26,494 31,492 (4,998) (15.9) % Total salaries, wages and benefits $ 85,478 $ 86,993 $ (1,515) (1.7) % Personnel costs for our retail and wholesale operations increased by $3.5 million, or 6.3%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase primarily reflects growth in our store base. Personnel costs for our corporate employees decreased by $5.0 million, or 15.9%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The decrease primarily reflects an $11.6 million decrease in IPO-related stock-based compensation expense, partially offset by higher incentive plan expense, wages and non-IPO-related stock-based compensation expense. 25 Table of Contents Selling, general and administrative The following table presents selling, general and administrative (“SG&A”): Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Retail and wholesale $ 84,922 $ 78,152 $ 6,770 8.7 % Corporate 16,793 10,260 6,533 63.7 % Total selling, general and administrative $ 101,715 $ 88,412 $ 13,303 15.0 % SG&A for our retail and wholesale operations increased by $6.8 million, or 8.7%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase primarily reflects growth in our store base and higher repair and maintenance expense. Corporate SG&A increased by $6.5 million, or 63.7%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase primarily reflects a $2.4 million impairment charge, an increase in professional services and $1.1 million of transaction costs related to the debt repricing amendment. Depreciation and amortization The following table presents depreciation and amortization: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Depreciation and amortization $ 25,473 $ 20,904 $ 4,569 21.9 % The $4.6 million increase in depreciation and amortization resulted primarily from continued investments in new stores, offsite processing and information technology, as well as capital maintenance expenditures, partially offset by lower accelerated depreciation and amortization following the reduction in the estimated useful lives of certain acquisition-related intangible assets and store-related property and equipment during the thirteen weeks ended June 28, 2025. Interest expense, net The following table presents interest expense, net: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Interest expense, net $ 12,865 $ 16,375 $ (3,510) (21.4) % Amortization of debt issuance cost and debt discount 546 1,406 (860) (61.2) % Gain on interest rate swaps (389) (1,796) 1,407 (78.3) % Total interest expense, net $ 13,022 $ 15,985 $ (2,963) (18.5) % The $3.0 million decrease in total interest expense, net was primarily due to a decrease in interest expense, net, partially offset by a decrease in gain on interest rate swaps. The $3.5 million decrease in interest expense, net was driven by a decrease in the weighted average interest rate. The weighted average interest rate decreased 250 basis points from 9.00% to 6.50%. This decrease was primarily due to the September 2025 debt refinancing. The $1.4 million decrease in the gain on interest rate swaps resulted primarily from the full reclassification in May 2025 of the remaining deferred gain recorded in accumulated other comprehensive income related to the interest rate swap terminated in April 2024. 26 Table of Contents Gain on foreign currency, net The following table presents gain on foreign currency, net: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Loss (gain) on foreign currency remeasurement $ 4,798 $ (12,859) $ 17,657 n/m (Gain) loss on derivative instruments (8,260) 4,248 (12,508) n/m Total gain on foreign currency, net $ (3,462) $ (8,611) $ 5,149 (59.8) % n/m – not meaningful Gains and losses on foreign currency relate primarily to movements in the Canadian dollar (“CAD”) relative to the U.S. dollar (“USD”). During the thirteen weeks ended July 4, 2026, the USD strengthened against the CAD relative to April 4, 2026, resulting in remeasurement losses of $4.8 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded gains of $8.3 million during the thirteen weeks ended July 4, 2026 on derivative instruments we use to manage foreign currency exchange rate risk. During the thirteen weeks ended June 28, 2025, the USD weakened against the CAD relative to March 29, 2025, resulting in remeasurement gains of $12.9 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded losses of $4.2 million during the thirteen weeks ended June 28, 2025 on derivative instruments we use to manage foreign currency exchange rate risk. Loss on extinguishment of debt The following table presents loss on extinguishment of debt: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Loss on extinguishment of debt $ 1,280 $ — $ 1,280 n/m n/m – not meaningful During the thirteen weeks ended July 4, 2026, the Company entered into an amendment (the “First Amendment”) to its 2025 Senior Secured Credit Facilities. The First Amendment resulted in a loss on extinguishment of debt of $1.3 million. Other (income) expense, net The following table presents other (income) expense, net: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Other (income) expense, net $ (66) $ 37 $ (103) n/m n/m – not meaningful Other (income) expense, net is comprised primarily of miscellaneous income and expenses not directly related to our core operating activities. 27 Table of Contents Income tax expense The following table presents income tax expense: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Income tax expense $ 9,844 $ 7,693 $ 2,151 28.0 % Effective tax rate 31.3 % 28.9 % We estimate an annual projected effective tax rate for the fiscal year to determine income tax expense or benefit in the interim periods. As such, income tax expense includes the impact of changes to the estimate of forecasted annual pre-tax book income, together with actual results from the current quarter, relative to the prior quarter in each respective year, adjusted for discrete quarterly events, as applicable. For the thirteen weeks ended July 4, 2026, we recorded income tax expense of $9.8 million on income before income taxes of $31.5 million, resulting in an effective tax rate of 31.3%. For the thirteen weeks ended June 28, 2025, we recorded income tax expense of $7.7 million on income before income taxes of $26.6 million, resulting in an effective tax rate of 28.9%. The increase in our effective tax rate was primarily due to a higher valuation allowance on a tax attribute in a foreign jurisdiction that is not expected to be realized. This impact was partially offset by a decrease in nondeductible executive compensation under Internal Revenue Code Section 162(m). Segment results The following table presents net sales and profit by segment: Thirteen Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Net sales: U.S. Retail $ 255,275 $ 228,833 $ 26,442 11.6 % Canada Retail 158,316 154,956 3,360 2.2 % Total segment sales $ 413,591 $ 383,789 $ 29,802 7.8 % Segment profit: U.S. Retail $ 58,960 $ 48,513 $ 10,447 21.5 % Canada Retail $ 45,598 $ 39,475 $ 6,123 15.5 % U.S. Retail U.S. Retail sales increased by $26.4 million, or 11.6%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase in U.S. Retail sales resulted from growth in our store base, as well as a 6.6% increase in comparable store sales. The increase in comparable store sales was driven by higher average basket and transactions. U.S. Retail segment profit increased by $10.4 million, or 21.5%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase in U.S. Retail segment profit primarily reflects higher profit from our comparable stores. Canada Retail Canada Retail sales increased by $3.4 million, or 2.2%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase in Canada Retail sales resulted from growth in our store base and a 0.8% increase in comparable store sales. The increase in comparable store sales was primarily driven by an earlier Easter in fiscal 2026 which positively impacted Canadian comparable store sales by 0.7%. Canada Retail segment profit increased by $6.1 million, or 15.5%, during the thirteen weeks ended July 4, 2026, compared to the thirteen weeks ended June 28, 2025. The increase in Canada Retail segment profit primarily reflects increased operating efficiency. 28 Table of Contents Twenty-Six Weeks Ended July 4, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025 Net sales The following table presents net sales: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Retail sales $ 816,436 $ 747,189 $ 69,247 9.3 % Wholesale sales 34,978 40,164 (5,186) (12.9) % Total net sales $ 851,414 $ 787,353 $ 64,061 8.1 % Retail sales increased by $69.2 million, or 9.3%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase in retail sales resulted primarily from growth in our store base, a 4.0% increase in comparable store sales and the favorable impact of foreign currency exchange rates. Cost of merchandise sold, exclusive of depreciation and amortization The following table presents cost of merchandise sold, exclusive of depreciation and amortization: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Cost of merchandise sold, exclusive of depreciation and amortization $ 376,453 $ 355,381 $ 21,072 5.9 % Cost of merchandise sold decreased 90 basis points to 44.2% of net sales during the twenty-six weeks ended July 4, 2026, compared to 45.1% for the twenty-six weeks ended June 28, 2025. The 90 basis point decrease primarily reflects improvement in cost of merchandise sold as a percentage of net sales on comparable store sales due to increased operating efficiency and the favorable impact of year-over-year growth in OSDs, partially offset by new store dilution. Personnel costs classified within cost of merchandise sold were $233.4 million during the twenty-six weeks ended July 4, 2026, compared to $219.0 million during the twenty-six weeks ended June 28, 2025. The $14.4 million increase in personnel costs resulted primarily from growth in our store base and higher wage rates, partially offset by labor efficiency gains. Salaries, wages and benefits The following table presents salaries, wages and benefits: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Retail and wholesale $ 113,958 $ 108,204 $ 5,754 5.3 % Corporate 57,905 63,591 (5,686) (8.9) % Total salaries, wages and benefits $ 171,863 $ 171,795 $ 68 — % Personnel costs for our retail and wholesale operations increased by $5.8 million, or 5.3%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase primarily reflects growth in our store base. Personnel costs for our corporate employees decreased by $5.7 million, or 8.9%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The decrease primarily reflects a $16.6 million decrease in IPO-related stock-based compensation expense, partially offset by higher wages, annual incentive plan expense and non-IPO-related stock-based compensation expense. 29 Table of Contents Selling, general and administrative The following table presents selling, general and administrative: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Retail and wholesale $ 170,152 $ 154,087 $ 16,065 10.4 % Corporate 30,016 21,404 8,612 40.2 % Total selling, general and administrative $ 200,168 $ 175,491 $ 24,677 14.1 % SG&A for our retail and wholesale operations increased by $16.1 million, or 10.4%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase primarily reflects growth in our store base, as well as increased repair and maintenance expense, preopening expenses and rent and utilities. Corporate SG&A increased by $8.6 million, or 40.2%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase primarily reflects a $2.9 million impairment charge, investments in information technology, an increase in professional services and $1.1 million of transaction costs related to the debt repricing amendment. Depreciation and amortization The following table presents depreciation and amortization: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Depreciation and amortization $ 48,228 $ 40,262 $ 7,966 19.8 % The $8.0 million increase in depreciation and amortization resulted primarily from continued investments in new stores, offsite processing and information technology, as well as capital maintenance expenditures, partially offset by lower accelerated depreciation and amortization following the reduction in the estimated useful lives of certain acquisition-related intangible assets and store-related property and equipment during the twenty-six weeks ended June 28, 2025. Interest expense, net The following table presents interest expense, net: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Interest expense, net $ 25,410 $ 32,405 $ (6,995) (21.6) % Amortization of debt issuance cost and debt discount 1,098 2,826 (1,728) (61.1) % Gain on interest rate swaps (817) (4,432) 3,615 (81.6) % Total interest expense, net $ 25,691 $ 30,799 $ (5,108) (16.6) % The $5.1 million decrease in total interest expense, net was primarily due to a decrease in interest expense, net, partially offset by a decrease in gain on interest rate swaps. The $7.0 million decrease in interest expense, net was primarily due to a decrease in the weighted average interest rate. The weighted average interest rate decreased 242 basis points from 9.02% to 6.60%. This decrease was primarily due to the September 2025 debt refinancing. The $3.6 million decrease in gain on interest rate swaps resulted primarily from the full reclassification in May 2025 of the remaining deferred gain recorded in accumulated other comprehensive income related to the interest rate swap terminated in April 2024. 30 Table of Contents Loss (gain) on foreign currency, net The following table presents loss (gain) on foreign currency, net: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Loss (gain) on foreign currency remeasurement $ 8,393 $ (14,835) $ 23,228 n/m (Gain) loss on derivative instruments (5,884) 4,593 (10,477) n/m Total loss (gain) on foreign currency, net $ 2,509 $ (10,242) $ 12,751 n/m n/m – not meaningful Gains and losses on foreign currency relate primarily to movements in the CAD relative to the USD. During the twenty-six weeks ended July 4, 2026, the USD strengthened against the CAD relative to January 3, 2026, resulting in remeasurement losses of $8.4 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded gains of $5.9 million during the twenty-six weeks ended July 4, 2026 on derivative instruments we use to manage foreign currency exchange rate risk. During the twenty-six weeks ended June 28, 2025, the USD weakened against the CAD relative to December 28, 2024, resulting in remeasurement gains of $14.8 million arising primarily on USD-denominated debt held by one of our Canadian subsidiaries. We also recorded losses of $4.6 million during the twenty-six weeks ended June 28, 2025 on derivative instruments we use to manage foreign currency exchange rate risk. Loss on extinguishment of debt The following table presents loss on extinguishment of debt: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Loss on extinguishment of debt $ 1,280 $ 2,718 $ (1,438) (52.9) % During the twenty-six weeks ended July 4, 2026, the Company entered into the First Amendment to its 2025 Senior Secured Credit Facilities. The First Amendment resulted in a loss on extinguishment of debt of $1.3 million. During the twenty-six weeks ended June 28, 2025, loss on extinguishment of debt comprised $2.7 million associated with the redemption of $44.5 million aggregate principal amount of the Senior Secured Notes on February 6, 2025. Other expense, net The following table presents other expense, net: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Other expense, net $ 138 $ 203 $ (65) (32.0) % Other expense, net is comprised primarily of miscellaneous income and expenses not directly related to our core operating activities. 31 Table of Contents Income tax expense The following table presents income tax expense: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Income tax expense $ 8,716 $ 6,752 $ 1,964 29.1 % Effective tax rate 34.7 % 32.2 % We estimate an annual projected effective tax rate for the fiscal year to determine income tax expense or benefit in the interim periods. As such, income tax expense includes the impact of changes to the estimate of forecasted annual pre-tax book income, together with actual results from the current quarter, relative to the prior quarter in each respective year, adjusted for discrete quarterly events, as applicable. During the twenty-six weeks ended July 4, 2026, we recorded income tax expense of $8.7 million on income before income taxes of $25.1 million, resulting in an effective tax rate of 34.7%. 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%. The increase in our effective tax rate was primarily due to a higher valuation allowance on a tax attribute in a foreign jurisdiction that is not expected to be realized. This impact was partially offset by a decrease in nondeductible executive compensation under Internal Revenue Code Section 162(m). Segment results The following table presents net sales and profit by segment: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 $ Change % Change Net sales: U.S. Retail $ 489,555 $ 439,598 $ 49,957 11.4 % Canada Retail 295,509 283,591 11,918 4.2 % Total segment sales $ 785,064 $ 723,189 $ 61,875 8.6 % Segment profit: U.S. Retail $ 101,704 $ 87,511 $ 14,193 16.2 % Canada Retail $ 76,851 $ 64,791 $ 12,060 18.6 % U.S. Retail U.S. Retail sales increased by $50.0 million, or 11.4%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase in U.S. Retail sales resulted from a 6.5% increase in comparable store sales, as well as growth in our store base. The increase in comparable store sales was driven by higher average basket and transactions. U.S. Retail segment profit increased by $14.2 million, or 16.2%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase in U.S. Retail segment profit primarily reflects higher profit from our comparable stores, partially offset by the impact of new stores. Canada Retail Canada Retail sales increased by $11.9 million, or 4.2%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase in Canada Retail sales resulted from growth in our store base, the favorable impact of foreign currency exchange rate and a 0.2% increase in comparable store sales. The increase in comparable store sales was driven by higher average basket. Canada Retail segment profit increased by $12.1 million, or 18.6%, during the twenty-six weeks ended July 4, 2026, compared to the twenty-six weeks ended June 28, 2025. The increase in Canada Retail segment profit primarily reflects increased operating efficiency and, to a lesser extent, the favorable impact of foreign currency exchange rates. 32 Table of Contents Non-GAAP Financial Measures The Company reports its financial results in accordance with GAAP. Non-GAAP financial measures used by the Company include Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and constant-currency net sales. In the discussion that follows, we provide definitions and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental to, and in addition to, the financial measures presented in this Quarterly Report that are calculated and presented in accordance with GAAP. These non-GAAP financial measures should not be considered superior to, as a substitute for, or an alternative to, and should be considered in conjunction with, the GAAP financial measures presented elsewhere in this Quarterly Report. These non-GAAP financial measures may differ from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. The Company has included these non-GAAP financial measures as these are key measures used by its management and its board of directors to evaluate its operating performance and the effectiveness of its business strategies, make budgeting decisions and evaluate compensation decisions. The Company presents Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin because it considers these meaningful measures to share with investors as they best allow comparison of the performance of one period with that of another period. In addition, by presenting Adjusted net income, Adjusted net income per diluted share, Adjusted EBITDA and Adjusted EBITDA margin, the Company provides investors with management’s perspective of the Company’s operating performance. Adjusted net income is defined as net income excluding the impact of loss on extinguishment of debt, IPO-related stock-based compensation expense, transaction costs, foreign currency exchange rate impacts, certain other adjustments, the tax effect on the above adjustments and the excess tax shortfall from stock-based compensation. We define Adjusted net income per diluted share as Adjusted net income divided by diluted weighted average common shares outstanding. Adjusted EBITDA is defined as net income excluding the impact of interest expense, net, income tax expense, depreciation and amortization, loss on extinguishment of debt, stock-based compensation expense, lease intangible asset expense, transaction costs, foreign currency exchange rate impacts and certain other adjustments. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net sales, expressed as a percentage. 33 Table of Contents A reconciliation of GAAP net income and GAAP net income per diluted share to Adjusted net income and Adjusted net income per diluted share is presented in the table below: Thirteen Weeks Ended Twenty-Six Weeks Ended (in thousands, except per share amounts) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Adjusted net income: Net income $ 21,631 $ 18,917 $ 16,368 $ 14,194 Loss on extinguishment of debt (1)(2) 1,280 — 1,280 2,718 IPO-related stock-based compensation expense (1)(3) (2,710) 8,870 1,123 17,749 Transaction costs (1)(4) 1,080 1,205 1,454 1,205 Foreign currency exchange rate impacts (1)(5) (2,912) (8,513) 2,882 (8,999) Other adjustments (1)(6) 2,473 2,580 2,990 2,253 Tax effect on adjustments (7) 919 (555) (2,010) (3,219) Excess tax shortfall from stock-based compensation 570 248 743 466 Adjusted net income $ 22,331 $ 22,752 $ 24,830 $ 26,367 Adjusted net income per share, diluted: Net income per share, diluted $ 0.14 $ 0.12 $ 0.10 $ 0.09 Loss on extinguishment of debt (1)(2) 0.01 — 0.01 0.02 IPO-related stock-based compensation expense (1)(3) (0.02) 0.05 0.01 0.11 Transaction costs (1)(4) 0.01 0.01 0.01 0.01 Foreign currency exchange rate impacts (1)(5) (0.02) (0.05) 0.02 (0.06) Other adjustments (1)(6) 0.02 0.02 0.02 0.01 Tax effect on adjustments (7) 0.01 — (0.01) (0.02) Excess tax shortfall from stock-based compensation — — — — Adjusted net income per share, diluted * $ 0.14 $ 0.14 $ 0.16 $ 0.16 *May not foot due to rounding (1)Presented pre-tax. (2)Removes the effect of loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the 2025 Term Loan Facility on June 2, 2026 and the partial redemption of our Senior Secured Notes on February 6, 2025. (3)Represents stock-based compensation expense for performance-based options triggered by the completion of our IPO and expense related to restricted stock units issued in connection with the Company’s IPO. The thirteen and twenty-six weeks ended July 4, 2026 include a credit to stock-based compensation expense resulting from the reversal of previously recognized expense for stock-based awards forfeited upon employee retirements. (4)Comprised of non-capitalizable expenses related to debt transactions and offering costs. (5)Represents remeasurement (gains) losses on unsettled foreign currency transactions, realized and unrealized (gains) losses on cross currency swaps and unrealized (gains) losses on forward contracts. 34 Table of Contents (6)The thirteen and twenty-six weeks ended July 4, 2026 include impairment charges of $2.4 million primarily due to the closure of a warehouse processing facility. The twenty-six weeks ended July 4, 2026 further includes store impairment charges. The thirteen and twenty-six weeks ended June 28, 2025 include accelerated amortization and depreciation of $3.3 million due to a reduction of the estimated useful lives for certain acquisition-related intangible assets and store-related property and equipment. In addition, the thirteen and twenty-six weeks ended June 28, 2025 include a reduction to the fair value of acquisition-related contingent consideration of $0.9 million and $1.2 million, respectively. (7)Tax effect on adjustments is calculated utilizing the tax rate specifically applicable to the respective adjustments. A reconciliation of GAAP net income to Adjusted EBITDA is presented in the table below: Thirteen Weeks Ended Twenty-Six Weeks Ended (dollars in thousands) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Net income $ 21,631 $ 18,917 $ 16,368 $ 14,194 Interest expense, net 13,022 15,985 25,691 30,799 Income tax expense 9,844 7,693 8,716 6,752 Depreciation and amortization 25,473 20,904 48,228 40,262 Loss on extinguishment of debt (1) 1,280 — 1,280 2,718 Stock-based compensation expense (2) 1,775 12,429 9,706 23,965 Lease intangible asset expense (3) 848 852 1,652 1,685 Transaction costs (4) 1,080 1,205 1,454 1,205 Foreign currency exchange rate impacts (5) (2,912) (8,513) 2,882 (8,999) Other adjustments (6) 2,473 (686) 2,990 (1,013) Adjusted EBITDA $ 74,514 $ 68,786 $ 118,967 $ 111,568 Net income margin 4.8% 4.5% 1.9% 1.8% Adjusted EBITDA margin 16.6% 16.5% 14.0% 14.2% (1)Removes the effect of loss on extinguishment of debt in relation to the repricing of outstanding borrowings under the 2025 Term Loan Facility on June 2, 2026 and the partial redemption of our Senior Secured Notes on February 6, 2025. (2)Represents non-cash stock-based compensation expense related to stock options and restricted stock units granted to certain of our employees and directors. The thirteen and twenty-six weeks ended July 4, 2026 include a credit to stock-based compensation expense resulting from the reversal of previously recognized expense for stock-based awards forfeited upon employee retirements. (3)Represents lease expense associated with acquired lease intangibles. (4)Comprised of non-capitalizable expenses related to debt transactions and offering costs. (5)Represents remeasurement (gains) losses on unsettled foreign currency transactions, realized and unrealized (gains) losses on cross currency swaps and unrealized (gains) losses on forward contracts. (6)The thirteen and twenty-six weeks ended July 4, 2026 include impairment charges of $2.4 million primarily due to the closure of a warehouse processing facility. The twenty-six weeks ended July 4, 2026 further includes store impairment charges. The thirteen and twenty-six weeks ended June 28, 2025 include a reduction to the fair value of acquisition-related contingent consideration of $0.9 million and $1.2 million, respectively. Constant currency The Company reports certain operating results on a constant-currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of fluctuating foreign currency exchange rates. The term foreign currency exchange rates refers to the exchange rates used to translate the Company's operating results for all countries where the functional currency is not the USD into the USD. Because the Company is a global company, foreign currency exchange rates used for translation may have a significant effect on its reported results. In general, given the Company's significant operations in Canada, the Company's financial results are affected positively by a weakening of the USD against the CAD and are affected negatively by a strengthening of the USD against the CAD. References to operating results on a constant-currency basis indicate operating results without the impact of foreign currency exchange rate fluctuations. 35 Table of Contents The Company believes disclosure of constant-currency net sales is helpful to investors because it facilitates period-to-period comparisons of its results by increasing the transparency of its underlying performance by excluding the impact of fluctuating foreign currency exchange rates. Constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. During the thirteen weeks ended July 4, 2026, as compared to the thirteen weeks ended June 28, 2025, the USD was constant relative to the CAD and weaker relative to the Australian dollar (“AUD”), which resulted in an overall favorable impact on our operating results. During the twenty-six weeks ended July 4, 2026, as compared to the twenty-six weeks ended June 28, 2025, the USD was weaker relative to the CAD and the AUD, which resulted in a favorable impact on our operating results. The Company calculates constant-currency net sales by translating current-period net sales using the average exchange rates from the comparative prior period rather than the actual average exchange rates in effect. A reconciliation of GAAP net sales to constant-currency net sales is presented in the table below: Thirteen Weeks Ended (dollars in thousands) Net Sales Impact of Foreign Currency Constant-Currency Net Sales $ Change Over Prior Year % Change Over Prior Year July 4, 2026 U.S. Retail $ 255,275 $ — $ 255,275 $ 26,442 11.6 % Canada Retail 158,316 103 158,419 3,463 2.2 % Other 34,628 (1,628) 33,000 (419) (1.3) % Total net sales $ 448,219 $ (1,525) $ 446,694 $ 29,486 7.1 % June 28, 2025 U.S. Retail $ 228,833 n/a $ 228,833 n/a n/a Canada Retail 154,956 n/a 154,956 n/a n/a Other 33,419 n/a 33,419 n/a n/a Total net sales $ 417,208 n/a $ 417,208 n/a n/a Twenty-Six Weeks Ended (dollars in thousands) Net Sales Impact of Foreign Currency Constant-Currency Net Sales $ Change Over Prior Year % Change Over Prior Year July 4, 2026 U.S. Retail $ 489,555 $ — $ 489,555 $ 49,957 11.4 % Canada Retail 295,509 (6,223) 289,286 5,695 2.0 % Other 66,350 (3,181) 63,169 (995) (1.6) % Total net sales $ 851,414 $ (9,404) $ 842,010 $ 54,657 6.9 % June 28, 2025 U.S. Retail $ 439,598 n/a $ 439,598 n/a n/a Canada Retail 283,591 n/a 283,591 n/a n/a Other 64,164 n/a 64,164 n/a n/a Total net sales $ 787,353 n/a $ 787,353 n/a n/a n/a - not applicable 36 Table of Contents Liquidity and Capital Resources Overview We have historically financed our operations primarily with cash generated by operating activities and proceeds from debt issuances. Although we do not anticipate paying any cash dividends in the foreseeable future, any future determination relating to dividend policy will be made at the discretion of our board of directors and will depend on a number of factors, including restrictions in our current and future debt instruments, our future earnings, capital requirements, financial condition, prospects and applicable Delaware law, which provides that dividends are only payable out of surplus or current net profits. Our primary short-term requirements for liquidity and capital are to meet general working capital needs, fund capital expenditures and make required minimum principal and interest payments on our debt. Our primary long-term liquidity and capital needs relate to repaying the principal balance on our debt and making lease payments on our retail stores and processing facilities. We may also use cash on our balance sheet, cash generated from operations or proceeds from new borrowings, or any combination of these sources of liquidity and capital, to fund growth initiatives, to pay down debt, to conduct repurchases of our common stock, or to pay for acquisitions, or any combination of the foregoing. Our primary sources of liquidity and capital are cash generated from operations and proceeds from borrowings, including borrowings on our 2025 Senior Secured Credit Facilities. As of July 4, 2026, $179.2 million was available to borrow under the 2025 Revolving Credit Facility. We believe our existing cash and cash equivalents and cash provided by our operating activities are sufficient to fund our liquidity needs for the next 12 months. See Note 3. Debt to our unaudited interim condensed consolidated financial statements for details of our debt. 2025 Share Repurchase Program We announced on October 30, 2025 the authorization of a new share repurchase program of up to $50 million of the Company’s common stock (the “2025 Share Repurchase Program”). The 2025 Share Repurchase Program became effective as of November 9, 2025 and expires on November 8, 2027. Under the 2025 Share Repurchase Program, we may purchase shares from time to time in compliance with applicable securities laws, that may include Exchange Act Rule 10b-18 and Exchange Act Rule 10b5-1. Although our Board of Directors has authorized the 2025 Share Repurchase Program, we are not obligated to repurchase any specific dollar amount or to acquire any specific number of shares under the program. In addition, the 2025 Share Repurchase Program may be suspended, modified or terminated at any time without prior notice. The amount, timing and execution of our 2025 Share Repurchase Program will be based upon a variety of factors, including the share price of our common stock, general market conditions, alternative uses for capital, our financial performance and other considerations. Any repurchases will be funded by available cash and cash equivalents. 37 Table of Contents Cash Flows Twenty-Six Weeks Ended July 4, 2026 compared to the Twenty-Six Weeks Ended June 28, 2025 The following table summarizes our cash flows: Twenty-Six Weeks Ended (in thousands) July 4, 2026 June 28, 2025 Net cash provided by operating activities $ 92,675 $ 54,865 Net cash used in investing activities (57,484) (53,879) Net cash used in financing activities (28,173) (82,933) Effect of exchange rate changes on cash and cash equivalents (1,053) 2,530 Net change in cash and cash equivalents $ 5,965 $ (79,417) Net cash provided by operating activities Net cash provided by operating activities for the twenty-six weeks ended July 4, 2026 was $92.7 million, compared to $54.9 million for the twenty-six weeks ended June 28, 2025. The $37.8 million increase is primarily due to a $33.8 million decrease in income taxes paid, which includes receipt of a U.S. federal income tax refund, and a $10.0 million decrease in interest paid. Net cash used in changes in operating assets and liabilities during the twenty-six weeks ended July 4, 2026 consisted primarily of a $70.6 million change in operating lease liabilities and a $9.4 million change in prepaid expenses and other assets. The change in operating lease liabilities resulted from lease payments. The change in prepaid expenses and other assets is primarily a result of a decrease in prepaid taxes. Net cash used in changes in operating assets and liabilities during the twenty-six weeks ended June 28, 2025 consisted primarily of a $62.2 million change in operating lease liabilities and a $13.2 million change in prepaid expenses and other assets. The change in operating lease liabilities resulted from lease payments. The change in prepaid expenses and other assets is primarily a result of an increase in prepaid taxes. Net cash used in investing activities Net cash used in investing activities was $57.5 million for the twenty-six weeks ended July 4, 2026 and $53.9 million for the twenty-six weeks ended June 28, 2025. Expenditure in both periods consisted primarily of investments in new stores, offsite processing and information technology, as well as capital maintenance expenditures. Net cash used in financing activities Net cash used in financing activities was $28.2 million for the twenty-six weeks ended July 4, 2026, which primarily reflected $20.5 million of repurchases of common stock. Net cash used in financing activities was $82.9 million for the twenty-six weeks ended June 28, 2025 which consisted primarily of a $44.5 million principal payment on the Senior Secured Notes and $35.6 million of repurchases of common stock. 38 Table of Contents Critical Accounting Estimates Our unaudited interim condensed consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report are prepared in accordance with GAAP. Preparation of our unaudited interim condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from our estimates under different assumptions or conditions. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected. We believe that the assumptions and estimates, as set forth in our 2025 Annual Report on Form 10-K, associated with income taxes have the greatest potential impact on our unaudited interim condensed consolidated financial statements. Accordingly, we believe this policy is most critical to aid in fully understanding and evaluating our unaudited interim condensed consolidated financial statements. There have been no material changes to our critical accounting estimates as disclosed in our 2025 Annual Report on Form 10-K. Recent Accounting Pronouncements See Note 2. Summary of Significant Accounting Policies to our Notes to Interim Condensed Consolidated Financial Statements (unaudited) included in this Quarterly Report on Form 10-Q for a description of recently issued accounting pronouncements not yet adopted.