European Wax Center Q3 2021 Earnings Report
Key Takeaways
European Wax Center reported strong third-quarter results with significant growth in revenue, same-store sales, and operating profit compared to fiscal years 2020 and 2019. System-wide sales increased by 21% compared to 2019, driven by new center openings, same-store sales growth, and Wax Pass purchases. The company also raised its fiscal 2021 outlook for net new center openings, system-wide sales, total revenue, Adjusted net income and Adjusted EBITDA.
System-wide sales increased 60.0% and 21.3% from the third quarters of fiscal 2020 and 2019, respectively.
Same-store sales rose 10.6% from the third quarter of fiscal 2019, accelerating 3.7 percentage points from the second quarter of fiscal 2021.
Total revenue increased 61.0% and 20.4% from the third quarters of fiscal 2020 and 2019, respectively.
Adjusted EBITDA increased 352.6% and 39.3% from the third quarters of fiscal 2020 and 2019, respectively.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
Forward Guidance
The Company's outlook incorporates an appropriate level of prudence into its guidance for the balance of the year. However, this outlook does not contemplate a meaningful change from today in consumer behavior driven by renewed concerns about the COVID-19 pandemic, nor does it include further impacts from incremental tightening in the labor market beyond what we see today.
Positive Outlook
- Total Revenue $175.5 million - $178.5 million
- Adjusted Net Income $28.0 million - $29.0 million
- Adjusted EBITDA $61.0 million - $63.5 million
- New Center Openings, Net 57
- System-Wide Sales $795.0 million - $798.0 million