European Wax Center, Inc. Class A ( (EWCZ) ) has released its Q3 earnings. Here is a breakdown of the information European Wax Center, Inc. Class A presented to its investors.
European Wax Center, Inc. is a premier franchisor and operator of out-of-home waxing services in the United States, recognized for its innovative Comfort Wax® and dedicated personal care experience. The company, headquartered in Plano, Texas, boasts over 1,000 centers across 45 states, offering a professional and relatively painless waxing experience.
In its third-quarter fiscal year 2024 earnings report, European Wax Center, Inc. announced a slight decline in financial metrics compared to the previous year, yet remained aligned with its revised expectations. Despite challenges, the company reiterated its fiscal 2024 financial outlook, emphasizing plans to focus on driving guest growth and enhancing franchisee returns.
Key financial metrics disclosed included a decrease in system-wide sales to $240.2 million and total revenue to $55.4 million, both down slightly from the prior year. Same-store sales also saw a minor dip of 0.5%. Meanwhile, GAAP net income decreased significantly by 50.7% to $2.0 million, while adjusted net income and adjusted EBITDA also experienced declines. The company has been actively managing expenses, including significant SG&A costs related to executive severance and other strategic pivots.
Looking forward, European Wax Center, Inc. remains optimistic about its long-term growth potential, backed by its solid business model. The company is adjusting its outlook for net new center openings but continues to expect strong cash flow and sustained growth in both top-line and bottom-line metrics over the long term.
