NASDAQ$EWCZ

European Wax Center Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

European Wax Center reported first quarter fiscal 2022 results, opened 21 net new centers, and raised fiscal 2022 outlook for revenue and profit.

European Wax Center reported strong first quarter fiscal 2022 results, with system-wide sales increasing by 31.9% and total revenue increasing by 23.9%. The company opened 21 net new centers and raised its fiscal 2022 outlook for revenue and profit. They also completed debt refinancing with proceeds funding $3.30 per share special dividend.

  • System-wide sales increased by 31.9% to $207.0 million.
  • Total revenue increased by 23.9% to $45.4 million.
  • Same-store sales increased by 29.0%.
  • The Company opened 21 net new centers, bringing the total to 874 centers.

Headline financials

Total Revenue

$183K

Previous: $36.7M-99.5%
EPS (adj)

$0.17

Previous: $0.04+369.9%
Adjusted EBITDA

$15.2M

Previous: $12.5M+20.9%
Total Centers

874

Previous: 808+8.2%
Capital Expenditures

-$303K

No prior period
Free Cash Flow

$3.72M

No prior period
Net Income

$4.03M

Previous: $1.1M+265.3%
Operating Income

-$4.88M

Previous: $5.64M-186.5%
Gross Profit

$183K

Previous: $26.7M-99.3%
Cash & Equivalents

$44.2M

No prior period
Total Assets

$619M

No prior period

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$183K

Q1 2022-99.5%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

European Wax Center · $45.4M total across 4 segments · Q1 2022

  • Product Sales
    $24.8M
  • Royalty Fees
    $11.4M
  • Marketing Fees
    $6.45M
  • Other Revenue
    $2.81M

Forward guidance

European Wax Center provided fiscal year 2022 outlook, including new center openings, system-wide sales, total revenue, same-store sales, adjusted net income, and adjusted EBITDA.

Tailwinds

  • New Center Openings, Net: 70 to 72
  • System-Wide Sales: $875 million to $915 million
  • Total Revenue: $199 million to $209 million
  • Same-Store Sales: 9.5% to 10.5%
  • Adjusted EBITDA: $69.5 million to $72.5 million

Headwinds

  • Fiscal 2022 guidance includes a 53rd week in the fourth quarter.
  • The Company estimates its contribution to the top and bottom line will be worth approximately one half of an average fourth quarter week.
  • The Company's outlook assumes no meaningful change from today in consumer behavior driven by renewed concerns about the COVID-19 pandemic
  • The Company's outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
  • The previous outlook assumed fiscal 2022 year-over-year same-store sales growth at the high end of its long-term target of high single digits growth.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.5%

Avg return

Earnings day

+0.0%

Avg return

5 days after

-0.3%

Avg return

30 days after

53%

10 / 19 earnings

Positive

+22.1%

Q1 2026

Best reaction

-26.3%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+0.0%+0.3%+1.2%
Q3 2026+14.3%+0.3%+11.2%
Q2 2026+13.6%+5.7%-11.6%
Q1 2026+22.1%+39.6%+44.9%
Q4 2024-12.9%-14.9%-28.6%
Q3 2024-26.3%-26.3%-24.6%
Q2 2024-18.5%-14.7%+2.0%
Q1 2024+0.7%-0.8%+6.8%
Q4 2023+12.8%+11.1%-7.3%
Q3 2023-15.9%-17.0%-6.0%
Q2 2023+6.0%-0.9%-6.3%
Q1 2023-9.1%-3.2%-7.0%
Q4 2022-10.6%-11.6%+1.1%
Q3 2022+0.6%-2.9%+2.0%
Q2 2022-2.8%-7.6%-9.8%
Q1 2022+5.5%-10.9%-3.2%
Q4 2021+21.1%+32.8%+26.9%
Q3 2021-0.8%-9.2%-13.3%
Q2 2021+9.7%+30.8%+15.5%
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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