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Jan 04, 2025
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.
Revenue by Segment
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.
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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