NASDAQ$EWCZ

European Wax Center Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

European Wax Center reported record second quarter fiscal 2021 results and introduced guidance for fiscal year 2021.

European Wax Center reported strong second quarter results with significant sales and profit growth relative to pre-pandemic performance. System-wide sales increased by 443% compared to the second quarter of fiscal 2020 and 15% compared to the second quarter of fiscal 2019. Total revenue increased by 343% from the second quarter of fiscal 2020 and 11% from the second quarter of fiscal 2019.

  • System-wide sales were $218.5 million, a 443% increase from the second quarter of fiscal 2020 and a 15% increase from the second quarter of fiscal 2019
  • Same-store sales rose 6.9% from the second quarter of fiscal 2019, a 13.1 percentage point increase from the first quarter 2021 same-store decline of 6.2%
  • Total revenue increased 343% to $47.9 million from the second quarter of fiscal 2020 and 11% from the second quarter of fiscal 2019
  • Net income grew $19.1 million to $7.7 million from the second quarter of fiscal 2020 and increased $3.9 million from the second quarter of fiscal 2019

Headline financials

Total Revenue

$47.9M

Previous: $10.8M+343.0%
EPS (adj)

$0.29

Previous: -$0.37+177.7%
System-wide Sales

$218M

Previous: $190M+14.8%
Same-store Sales Growth

6.9%

No prior period
Adjusted EBITDA

$19.8M

No prior period
Net Income

$7.73M

Previous: -$11.4M+168.0%
Operating Income

$12.4M

Previous: -$6.89M+279.5%
Cash & Equivalents

$35.2M

No prior period
Total Assets

$626M

No prior period

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$47.9M

Q2 2021+343%vs Q2 2020
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

European Wax Center · $47.9M total across 4 segments · Q2 2021

  • Product Sales
    $26.5M+14.8%
  • Royalty Fees
    $12M+13.5%
  • Marketing Fees
    $6.63M+12.4%
  • Other Revenue
    $2.72M-24.6%

Forward guidance

European Wax Center provided fiscal year 2021 guidance with total revenue expected to be between $173.0 million and $178.0 million and adjusted EBITDA between $60.0 million and $63.0 million.

Tailwinds

  • Total Revenue $173.0 million - $178.0 million
  • Adjusted Net Income $26.5 million - $28.5 million
  • Adjusted EBITDA $60.0 million - $63.0 million
  • New Center Openings, Net 52
  • System-Wide Sales $788.0 million - $793.0 million

Headwinds

  • The Company's outlook incorporates an appropriate level of prudence into its guidance for the balance of the year.
  • This outlook does not contemplate a meaningful change from today in consumer behavior driven by renewed concerns about the COVID-19 pandemic
  • This outlook does not include further impacts from incremental tightening in the labor market beyond what we see today.
  • Effective Tax Rate Approximately 12.5 %
  • Same-Store Sales High Single Digits

Historical earnings impact

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

Avg. return before/after earnings

Based on 18 quarterly earnings reports

Historical avg

+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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