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Jan 04
European Wax Center Q4 2024 Earnings Report
European Wax Center reported a decline in revenue but maintained profitability.
Key Takeaways
European Wax Center reported a total revenue of $49.7 million for Q4 FY24, marking an 11.7% decrease compared to the prior year. Net income stood at $3.1 million, down 13.1% year-over-year. However, Adjusted Net Income saw a strong increase of 37.0% to $8.1 million. Adjusted EBITDA remained relatively stable at $19.0 million, representing a 1.6% decline.
Total revenue fell 11.7% to $49.7 million due to the prior year's 14-week period.
Net income declined 13.1% to $3.1 million, reflecting increased SG&A expenses.
Adjusted Net Income rose 37.0% to $8.1 million, supported by operational efficiencies.
Adjusted EBITDA was $19.0 million, a slight decrease of 1.6% year-over-year.
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
European Wax Center anticipates fiscal 2025 to be a transitional year with moderate revenue growth and strategic center openings.
Positive Outlook
- Projected system-wide sales between $940M and $960M.
- Total revenue expected to range from $210M to $214M.
- Same-store sales growth anticipated between 0.0% and 2.0%.
- Adjusted Net Income guidance of $16M to $18M.
- Adjusted EBITDA forecasted between $69M and $71M.
Challenges Ahead
- Franchisees expected to open only 10-12 new centers.
- Projected closure of 40-60 centers in fiscal 2025.
- Potential decline in net store count between 28 and 50 locations.
- Ongoing pressure on four-wall profitability impacting franchisees.
- Transition period expected to moderate near-term earnings growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income