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Oct 05, 2024
European Wax Center Q3 2024 Earnings Report
European Wax Center reported third quarter results in line with revised expectations and reiterated fiscal year 2024 financial outlook while updating net new centers outlook.
Key Takeaways
European Wax Center's third quarter results aligned with revised expectations. System-wide sales decreased slightly, and total revenue also saw a minor decrease. The company is focused on driving new guests and ticket growth to enhance unit economics and financial returns for franchise partners.
Net new centers increased 3.7% to 1,064 total centers in 45 states.
System-wide sales decreased 0.2% to $240.2 million.
Total revenue decreased 0.5% to $55.4 million.
GAAP net income decreased 50.7% to $2.0 million.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
Forward Guidance
The Company reiterates its previous financial outlook for fiscal year 2024.
Positive Outlook
- System-Wide Sales $930 million to $950 million
- Total Revenue $216 million to $221 million
- Same-Store Sales (1.5)% to 0.5%
- Adjusted Net Income $19 million to $22 million
- Adjusted EBITDA $70 million to $74 million
Challenges Ahead
- The Company expects an additional 5 to 10 closures during the balance of the year, translating to 17 to 22 net new center openings compared to a previous outlook of 27 to 32 net new center openings.
Revenue & Expenses
Visualization of income flow from segment revenue to net income