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Mar 26, 2022
European Wax Center Q1 2022 Earnings Report
European Wax Center reported first quarter fiscal 2022 results, opened 21 net new centers, and raised fiscal 2022 outlook for revenue and profit.
Key Takeaways
European Wax Center reported strong first quarter fiscal 2022 results, with system-wide sales increasing by 31.9% and total revenue increasing by 23.9%. The company opened 21 net new centers and raised its fiscal 2022 outlook for revenue and profit. They also completed debt refinancing with proceeds funding $3.30 per share special dividend.
System-wide sales increased by 31.9% to $207.0 million.
Total revenue increased by 23.9% to $45.4 million.
Same-store sales increased by 29.0%.
The Company opened 21 net new centers, bringing the total to 874 centers.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
Forward Guidance
European Wax Center provided fiscal year 2022 outlook, including new center openings, system-wide sales, total revenue, same-store sales, adjusted net income, and adjusted EBITDA.
Positive Outlook
- New Center Openings, Net: 70 to 72
- System-Wide Sales: $875 million to $915 million
- Total Revenue: $199 million to $209 million
- Same-Store Sales: 9.5% to 10.5%
- Adjusted EBITDA: $69.5 million to $72.5 million
Challenges Ahead
- Fiscal 2022 guidance includes a 53rd week in the fourth quarter.
- The Company estimates its contribution to the top and bottom line will be worth approximately one half of an average fourth quarter week.
- The Company's outlook assumes no meaningful change from today in consumer behavior driven by renewed concerns about the COVID-19 pandemic
- The Company's outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
- The previous outlook assumed fiscal 2022 year-over-year same-store sales growth at the high end of its long-term target of high single digits growth.