NASDAQ$EWCZ

European Wax Center Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

European Wax Center announced first quarter 2024 results, exceeding expectations with strong revenue growth and continued network expansion.

European Wax Center reported a strong first quarter in 2024, marked by revenue growth of 11.7% to $56.4 million. The company expanded its network, adding 23 new centers, and demonstrated robust system-wide sales growth. EWC reaffirmed its full-year outlook, projecting continued growth and expansion.

  • Revenue increased by 11.7% to $56.4 million compared to the first quarter of 2023.
  • System-wide sales grew by 9.8% to $226.9 million.
  • Opened 23 new centers, increasing the network by 5.9%.
  • Reaffirmed full-year 2024 outlook, indicating confidence in continued growth.

Headline financials

Total Revenue

$51.9M

Previous: $49.9M+4.0%
EPS (adj)

$0.10

Previous: $0.05+100.0%
Capital Expenditures

-$30K

No prior period
Free Cash Flow

$10.7M

No prior period
Net Income

$1.8M

Previous: -$1.1M+263.6%
Operating Income

$6.8M

Previous: $5.3M+28.3%
Gross Profit

$33.4M

No prior period

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$51.9M

Q1 2024+4%vs Q1 2023
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

European Wax Center · $55.7M total across 4 segments · Q3 2023

  • Product Sales
    $31.9M+1.0%
  • Royalty Fees
    $13.3M+2.0%
  • Marketing Fees
    $7.55M+2.9%
  • Other Revenue
    $2.93M-4.0%

Forward guidance

European Wax Center reaffirmed its full-year 2024 outlook, projecting continued growth and network expansion.

Tailwinds

  • Revenue between $238 million and $242 million.
  • System-wide sales between $960 million and $980 million.
  • Adjusted EBITDA between $74 million and $76 million.
  • Capital expenditures between $14 million and $16 million.
  • Opening between 85 and 90 new centers.

Headwinds

  • The guidance is based on current expectations and is subject to change.
  • Macroeconomic conditions could impact consumer spending and franchise performance.
  • Competition in the personal care services industry may affect market share.
  • Supply chain disruptions could impact product availability and costs.
  • Regulatory changes could affect business operations and profitability.

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 2024

Historical avgQ1 2024

+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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