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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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