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Sep 30, 2023

European Wax Center Q3 2023 Earnings Report

Reported third quarter results with top-line, bottom-line and unit growth.

Key Takeaways

European Wax Center reported a 1.2% increase in total revenue to $55.7 million and a 2.4% increase in system-wide sales to $240.7 million. Net income decreased by 20.7% to $4.2 million, while Adjusted EBITDA increased by 3.4% to $19.3 million. The company updated its fiscal 2023 outlook to reflect lower-than-expected transactions.

Net new centers increased 12.6% to 1,026 total centers in 45 states.

System-wide sales of $240.7 million increased 2.4%.

Total revenue of $55.7 million increased 1.2%.

Same-store sales increased 3.4%.

Total Revenue
$55.7M
Previous year: $55M
+1.2%
EPS
$0.12
Previous year: $0.11
+9.1%
System-wide Sales
$241M
Same-store Sales Growth
3.4%
Adjusted EBITDA
$19.3M
Gross Profit
$35M
Cash and Equivalents
$70.5M
Previous year: $41.6M
+69.5%
Free Cash Flow
$17.5M
Total Assets
$754M

European Wax Center

European Wax Center

European Wax Center Revenue by Segment

Forward Guidance

The Company updates its previous outlook for fiscal year 2023 as follows: New Center Openings, Net 98 to 100, System-Wide Sales $945 million to $955 million, Total Revenue $217 million to $219 million, Same-Store Sales 1.5% to 2.5%, Adjusted Net Income $20.5 million to $21.5 million, Adjusted EBITDA $74.5 million to $76.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income