NASDAQ$EWCZ
European Wax Center Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
European Wax Center reported solid first quarter performance driven by unit growth and in-center sales growth, while reiterating fiscal year 2023 outlook.
European Wax Center reported a solid first quarter with a 9.8% increase in total revenue to $49.9 million and system-wide sales growth of 5.5%. The company opened 34 net new centers, representing a 12% year-over-year growth. Despite the revenue increase, the company reported a GAAP net loss of $1.1 million, but adjusted EBITDA increased by 7.5% to $16.3 million.
- Net new centers increased by 11.9% to a total of 978 centers across 45 states.
- System-wide sales increased by 5.5% to $218.4 million.
- Total revenue increased by 9.8% to $49.9 million.
- Same-store sales increased by 4.5%.
Headline financials
Revenue & EPS history
European Wax Center · Revenue · Quarterly
$49.9M
Revenue by segment
European Wax Center · $49.9M total across 4 segments · Q1 2023
- Product Sales$27.8M+12.4%55.8%
- Royalty Fees$12.4M+8.5%24.8%
- Marketing Fees$6.9M+7.0%13.8%
- Other Revenue$2.8M-0.6%5.6%
Forward guidance
The Company reiterates its previous outlook for fiscal year 2023.
Tailwinds
- New Center Openings, Net: 95 to 100
- System-Wide Sales: $965 million to $990 million
- Total Revenue: $222 million to $229 million
- Same-Store Sales: Mid-Single Digits
- Adjusted Net Income: $22 million to $24.5 million
Headwinds
- Fiscal 2022 and Fiscal 2023 each include a 53rd week in the fourth quarter.
- The Company estimates the 53rd week contribution to the top and bottom line is worth approximately one half of an average fourth quarter week.
- The Company's current outlook assumes no meaningful change in consumer behavior driven by inflationary pressures or the COVID-19 pandemic
- The Company's current outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
- Adjusted net income outlook assumes a 20% effective tax rate for Fiscal 2023.
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 2023
+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
| Quarter | Report date | Reaction (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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