Financial Data and Key Metrics Changes - Total net sales increased by 15.6% to $465 million, with an 8.4% increase when excluding the benefit of the 53rd week [13][14] - Adjusted EBITDA for the quarter was $74 million, representing a margin of 15.9% [17] - GAAP net income for the quarter was $22 million, or $0.14 per diluted share, while adjusted net income was $24 million, or $0.15 per diluted share [17] Business Line Data and Key Metrics Changes - U.S. sales grew by 20.6% to $266 million, with comparable store sales up 8.8% [14] - Canadian sales increased by 9.1% to $156 million, with comparable store sales up 0.7% [15] - U.S. segment profit was $60 million, an increase of $11 million, while Canadian segment profit was $43 million, up $4 million [18] Market Data and Key Metrics Changes - The U.S. market showed strong momentum with broad-based gains across categories and regions, driven by younger and more affluent customers [7][8] - Canadian market conditions remained stable, with a conservative planning approach reflecting modest growth [5][8] Company Strategy and Development Direction - The company aims to expand its store footprint, planning to open around 25 new stores in 2026, primarily in the U.S. [9][24] - Focus on innovation includes the introduction of ABP Lite and investments in in-store efficiency initiatives [10][11] - Strategic pillars for long-term value creation include growth, innovation, and capital allocation [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and value gaps as clothing prices rise in the U.S. [7] - The outlook for 2026 includes expected adjusted EBITDA growth with flat adjusted EBITDA margins, reflecting the maturation of new stores [19][21] - Management anticipates continued improvements in profitability and a long-term target of high teens adjusted EBITDA margins [20][81] Other Important Information - The company repaid $20 million of debt during the quarter and repurchased 1.1 million shares at a weighted average price of $8.75 [18] - The balance sheet remains strong with $86 million in cash and cash equivalents and a net leverage ratio of 2.5x [18] Q&A Session Summary Question: Progression of same-store sales post-holiday in the U.S. - Management noted continued good momentum in the U.S., with a rebound in February following disruptions from severe weather in January [29] Question: New store productivity and expected returns in the U.S. - New stores are progressing as expected, averaging around $3 million in sales in the first year, ramping up to around $5 million by the fifth year [30] Question: Latest thoughts on pricing and market share gains - Management indicated that price increases by competitors present opportunities for market share gains, with a focus on maintaining a compelling price-value relationship [34] Question: Trends with thrift customers and regional growth outlook - Management highlighted the growth of younger and more affluent customers, with broad-based growth across various U.S. markets [40][41] Question: Confidence in EBITDA margin expansion despite new store openings - Management emphasized the maturation of new stores as a key factor for future EBITDA margin expansion, expecting a modest tailwind from stores entering their third, fourth, and fifth years [65][81]

Financial Data and Key Metrics Changes - Total net sales increased by 15.6% to $465 million, with an 8.4% increase when excluding the benefit of the 53rd week [13][24] - Adjusted EBITDA for the quarter was $74 million, representing a margin of 15.9% [17] - GAAP net income for the quarter was $22 million, or $0.14 per diluted share, while adjusted net income was $24 million, or $0.15 per diluted share [17] Business Line Data and Key Metrics Changes - U.S. sales grew by 20.6% to $266 million, with comparable store sales up 8.8% [14] - Canadian sales increased by 9.1% to $156 million, with comparable store sales up 0.7% [15] Market Data and Key Metrics Changes - The U.S. customer base is skewing younger and more affluent, with approximately 40% of shoppers under 45 and 45% having household incomes above $100,000 [7] - In Canada, sales trends have stabilized, reflecting a conservative planning approach due to macroeconomic conditions [8] Company Strategy and Development Direction - The company plans to open around 25 new stores in 2026, with over 20 of those in the U.S., including expansions into North Carolina and Tennessee [9] - The strategic pillars for long-term value creation include growth, innovation, and capital allocation [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and value gaps as clothing prices rise in the U.S. [7] - The outlook for 2026 includes net sales of $1.76 billion to $1.79 billion and adjusted EBITDA of $260 million to $275 million [24] Other Important Information - The company repaid $20 million of debt during the quarter and repurchased 1.1 million shares at a weighted average price of $8.75 [18] - The company expects to target a net leverage ratio of under 2x within the next couple of years [19] Q&A Session Summary Question: Can you speak to the progression of same-store sales post-holiday in the U.S.? - Management noted continued good momentum in the U.S., with a rebound in February following disruptions from severe weather in January [29] Question: Could you elaborate on new store productivity and expected returns in the U.S.? - New stores are progressing as expected, averaging around $3 million in sales in the first year and ramping up to around $5 million by the fifth year [30] Question: What are your latest thoughts on pricing and market share gains? - Management indicated that they monitor pricing closely and see opportunities to gain market share as competitors raise prices [34] Question: Can you provide insights on the trends of thrift customers? - Management highlighted the growth of younger and more affluent customers, which is beneficial for the company's value proposition [40] Question: What gives you confidence in driving EBITDA margin expansion while keeping unit growth steady? - The maturation of new stores is expected to provide a tailwind for EBITDA margin expansion as they grow towards mature store profitability [65]

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, which is at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 during the fourth quarter [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The adjusted EBITDA for the last twelve months through the third quarter was $249 million, with adjusted EBITDA margins in the mid-teens [5][7] Market Data and Key Metrics Changes - Approximately 40% of customers are under the age of 45, and 45% reside in households earning over $100,000, indicating a younger and more affluent customer base [8] - The company has over 6 million active loyalty members, contributing to close to $1.7 billion in sales [5] Company Strategy and Development Direction - The company is focusing on growth, innovation, and balanced capital allocation as its strategic pillars [8][9] - The U.S. market is prioritized for new store growth, with 85%-90% of new stores planned to be opened in the U.S. [10] - The company aims for a leverage ratio of approximately 2x by the end of 2027, while continuing to invest in new store growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management believes that the thrift retail sector is experiencing secular adoption, driven by cost of living pressures [2] - The company expects adjusted EBITDA growth to begin in 2026 as new stores contribute positively to profitability [20][22] - The company is well-positioned to benefit from the growing reuse economy and has a durable source of supply through increasing on-site donations [22][23] Other Important Information - The company has paid $490 million to nonprofit partners for secondhand clothing and housewares over the last five years, keeping 3.2 billion lbs of reusable goods out of landfills [5] - The company has a unique business model as the number one for-profit thrift retailer in North America, operating 367 stores across three countries [4] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, which is at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The adjusted EBITDA for the last twelve months through the third quarter was $249 million, with adjusted EBITDA margins in the mid-teens [5][7] Market Data and Key Metrics Changes - Approximately 40% of customers are under the age of 45, and 45% reside in households earning over $100,000, indicating a younger and more affluent customer base [8] - The company operates 367 stores across three countries, with significant growth opportunities in the U.S. due to under-penetration [4][10] Company Strategy and Development Direction - The company is focused on growth, innovation, and balanced capital allocation as its strategic pillars [8][18] - The U.S. market will be the primary focus for new store growth, with 85% to 90% of new stores planned for the U.S. [10] - The company aims for a leverage ratio of approximately two times by the end of 2027, while continuing to invest in new store growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management believes that the thrift retail sector is experiencing secular growth, driven by cost of living pressures [2] - The company expects adjusted EBITDA growth to begin in 2026 as new stores start contributing positively to profitability [20][22] - The management is optimistic about the opportunities in 2026 and beyond, citing a unique category tailwind with thrift outpacing traditional retail [22][24] Other Important Information - The company has paid $490 million to nonprofit partners for secondhand clothing and housewares over the last five years, highlighting its commitment to sustainability [5] - The company has a strong cash-generative model that allows it to self-fund new store growth, reduce debt, and return capital to shareholders [24] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported $465 million in sales for the fourth quarter, representing a 15.6% increase from the prior year, and at the high end of guidance [1] - The enterprise comparable sales increased by 5.4%, with an 8.8% increase in the U.S. and a 0.7% increase in Canada [1][2] - The company repaid $20 million of debts and repurchased 1.1 million shares at an average price of $8.75 during the fourth quarter [2] Business Line Data and Key Metrics Changes - The company opened 10 new stores in the quarter, totaling 26 for the year, indicating strong new store performance [2] - The company has over 6 million active loyalty members, contributing to approximately $1.7 billion in sales [5] Market Data and Key Metrics Changes - The company noted that the customer base is becoming younger and more affluent, with approximately 40% of customers under the age of 45 and 45% residing in households earning over $100,000 [7] Company Strategy and Development Direction - The company is focusing on growth, innovation, and balanced capital allocation as its strategic pillars [8] - The U.S. market is prioritized for new store openings, with 85% to 90% of new stores planned for the U.S. [9] - The company aims to enter new strategic adjacent markets in North Carolina and Tennessee [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position at a key inflection point, with expectations for positive Adjusted EBITDA contributions in 2026 [2][10] - The company anticipates that new stores will start contributing to EBITDA growth beginning in 2026, with 2025 expected to be the trough for EBITDA margin [17][19] Other Important Information - The company has repaid $120 million in debt since its IPO, including $20 million in the most recent quarter, and aims for a leverage ratio of approximately two times by the end of 2027 [17] - The company has a proven innovation engine, focusing on price value optimization, cost efficiency, and data science insights [13][19] Q&A Session Summary - No specific questions and answers were provided in the content.