European Wax Center Q3 2022 Earnings Report
Key Takeaways
European Wax Center, Inc. reported a 7.3% increase in system-wide sales, reaching $235.2 million, and a 12.3% increase in total revenue to $55.0 million for the third quarter of fiscal 2022. The company's net income was $5.3 million, and Adjusted EBITDA reached $18.6 million, a 12.6% increase from the prior year period. They also raised full year expectations for new center openings and announced a $40 million share repurchase program.
System-wide sales increased by 7.3% to $235.2 million compared to the prior year period.
Total revenue increased by 12.3% to $55.0 million compared to the prior year period.
The company opened 18 net new centers, bringing the total to 911 centers, a 9.4% increase year-over-year.
Net income was $5.3 million, a significant increase from the net loss of $9.3 million in the prior year period.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
Forward Guidance
European Wax Center provided its fiscal year 2022 outlook, including estimates for new center openings, system-wide sales, total revenue, same-store sales, adjusted net income and adjusted EBITDA.
Positive Outlook
- New Center Openings, Net: 88 to 90
- System-Wide Sales: $885 million to $895 million
- Total Revenue: $202 million to $205 million
- Same-Store Sales: Approximately 9.5%
- Adjusted EBITDA: $70 million to $71 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 inflationary pressures or the COVID-19 pandemic
- The Company's outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
- Adjusted net income outlook assumes negligible corporate tax expense for fiscal 2022.