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Jan 06, 2024
European Wax Center Q4 2023 Earnings Report
Reported a strong fourth quarter and full year performance, driven by new center openings and consistent demand from core guests.
Key Takeaways
European Wax Center reported a 5.2% increase in total revenue to $56.3 million and a 59.1% increase in net income to $3.6 million for the fourth quarter of fiscal year 2023. The company ended the year with 1,044 centers, representing a 10.6% increase year-over-year.
Franchisees opened 18 net new centers, ending the year with 1,044 centers, a 10.6% increase year-over-year.
System-wide sales increased by 7.2% to $241.7 million, driven by new center openings and increased guest spending.
Total revenue grew by 5.2% to $56.3 million.
Net income increased by 59.1% to $3.6 million.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
Revenue by Segment
Product Sales Revenue
CapyFin.comRoyalty Fees Revenue
CapyFin.comMarketing Fees Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company provides the following outlook for fiscal year 2024: New Center Openings, Net 75 to 80; System-Wide Sales $1,000 million to $1,025 million; Total Revenue $225 million to $232 million; Same-Store Sales 2% to 5%; Adjusted Net Income(2) $22 million to $25 million; Adjusted EBITDA(3) $75 million to $80 million
Positive Outlook
- New Center Openings, Net 75 to 80
- System-Wide Sales $1,000 million to $1,025 million
- Total Revenue $225 million to $232 million
- Same-Store Sales 2% to 5%
- Adjusted Net Income(2) $22 million to $25 million
Challenges Ahead
- Adjusted EBITDA(3) $75 million to $80 million
- Fiscal 2022 and Fiscal 2023 each included a 53rd week in the fourth quarter.
- The Company estimates the 53rd week contribution to the top and bottom line is approximately equal to the contribution from an average fourth quarter week.
- The Company’s current outlook assumes no meaningful change in consumer behavior driven by inflationary pressures
- The Company’s current outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
Revenue & Expenses
Visualization of income flow from segment revenue to net income