Financial Data and Key Metrics Changes - Total net sales increased by 4.5% to $370 million, with a constant currency increase of 7.1% and comparable store sales up by 2.8% [15][16] - Adjusted EBITDA for the quarter was approximately $43 million, representing an adjusted EBITDA margin of 11.6% [19][20] - GAAP net loss for the quarter was $4.7 million, or $0.03 per diluted share, which included a $2.7 million pretax loss on debt extinguishment [18][19] Business Line Data and Key Metrics Changes - U.S. net sales increased by 9.4% to $211 million, with comparable store sales rising by 4.2% driven by growth in both transactions and average basket size [16][20] - Canadian net sales declined by 4.1% due to a weaker Canadian dollar, but on a constant currency basis, they increased by 2.2% to $137 million, with comparable store sales up by 0.6% [16][20] Market Data and Key Metrics Changes - The U.S. business showed nearly double-digit sales growth, while Canada reported positive comparable sales for the first time since Q4 2023 [6][15] - The company opened two new stores in the quarter and is on track to meet its target of 25 to 30 new store openings for the year [11][25] Company Strategy and Development Direction - The company is focusing on expanding its U.S. operations, with a significant emphasis on new store openings to capture market opportunities [8][11] - The strategy includes leveraging centralized processing centers to enhance operational efficiency and support new store growth [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic pressures, particularly in Canada, while maintaining a focus on execution and innovation [11][14] - The outlook for 2025 includes net sales projections of $1.61 billion to $1.65 billion, with comparable store sales growth of 0.5% to 2.5% [25][26] Other Important Information - The company redeemed $44.5 million of its senior secured notes during the quarter, reducing its net leverage ratio to 2.4 times [21][20] - The company has approximately $6.3 million remaining on its share repurchase authorization [21] Q&A Session Summary Question: Can you unpack the U.S. strength and provide more granularity on traffic versus basket? - Management noted strong performance in both transactions and average basket size, with no degradation in trends into Q2 [34][35] Question: How do you see Canada unfolding from here? - Management indicated that while there are challenges, they are encouraged by sequential improvements and strong donation flows [32][33] Question: Will Savers use the opportunity to raise prices selectively? - Management stated that they are not exposed to tariff pressures and see potential for market share gains if price gaps widen [46] Question: What is the outlook for on-site donations and how are you managing supply? - Management reported robust growth in on-site donations and emphasized the importance of a positive donation experience [49][50] Question: How are new stores performing and what is the long-term EBITDA margin potential? - New stores are performing as expected, and management believes high teens EBITDA margins are achievable in the long term despite near-term pressures [80][82]