NASDAQ$EWCZ

European Wax Center Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported financial results for the period ended June 25, 2022, raised full year expectations for new center openings, and reiterated fiscal 2022 financial outlook.

European Wax Center reported an 11.4% increase in total revenue to $53.4 million and a net income of $2.0 million for the second quarter of fiscal year 2022. The company opened 19 net new centers during the quarter and is raising its outlook for fiscal 2022 net new center openings to 83 to 85.

  • System-wide sales increased 5.7% to $231.1 million.
  • Total revenue increased 11.4% to $53.4 million.
  • Same-store sales increased 6.7%.
  • Net income was $2.0 million and Adjusted EBITDA was $18.6 million.

Headline financials

Total Revenue

$183K

Previous: $47.9M-99.6%
EPS (adj)

$0.19

Previous: $0.29-34.5%
Capital Expenditures

-$82K

No prior period
Free Cash Flow

$886K

No prior period
Net Income

$968K

Previous: $7.73M-87.5%
Operating Income

-$9.93M

Previous: $12.4M-180.3%
Gross Profit

$183K

No prior period
Cash & Equivalents

$31.2M

Previous: $35.2M-11.5%

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$183K

Q2 2022-99.6%vs Q2 2021
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 updated its fiscal 2022 outlook, increasing expectations for new center openings while maintaining previous guidance for system-wide sales, total revenue, same-store sales, adjusted net income, and adjusted EBITDA.

Tailwinds

  • New Center Openings, Net: 83 to 85
  • System-Wide Sales: $875 million to $915 million
  • Total Revenue: $199 million to $209 million
  • Same-Store Sales: 9.5% to 10.5%
  • Adjusted Net Income: $24 million to $28.5 million

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 Q2 2022

Historical avgQ2 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro