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Jul 06, 2024

European Wax Center Q2 2024 Earnings Report

European Wax Center reported an increase in total revenue and net income, but a decrease in adjusted EBITDA for Q2 2024.

Key Takeaways

European Wax Center's Q2 2024 saw a mix of positive and negative trends. Total revenue and net income increased, driven by growth in system-wide sales and same-store sales. However, adjusted EBITDA decreased, and the company updated its full-year financial guidance, including a revised outlook for new center openings due to macroeconomic pressures affecting consumer spending and new guest acquisition.

Net new centers increased by 5.6% to a total of 1,059 centers.

System-wide sales increased by 2.3% to $260.2 million.

Total revenue increased by 1.3% to $59.9 million.

GAAP net income increased by 7.3% to $6.0 million.

Total Revenue
$59.9M
Previous year: $59.1M
+1.3%
EPS
$0.15
Previous year: $0.11
+36.4%
System-wide Sales
$260M
Previous year: $254M
+2.4%
Adjusted EBITDA
$20.6M
Previous year: $21.2M
-2.8%
Gross Profit
$38.9M
Cash and Equivalents
$62.1M
Free Cash Flow
$14.2M
Total Assets
$728M

European Wax Center

European Wax Center

Forward Guidance

The Company updates its previous outlook for fiscal year 2024 as follows: Fiscal 2024 Outlook (Current)

Positive Outlook

  • System-Wide Sales $930 million to $950 million
  • Total Revenue $216 million to $221 million

Challenges Ahead

  • New Center Openings, Net 27 to 32
  • Same-Store Sales (1.5)% to 0.5%
  • Adjusted Net Income(2) $19 million to $22 million
  • Adjusted EBITDA $70 million to $74 million