NASDAQ$EWCZ

European Wax Center Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported record results and increased fiscal 2021 outlook.

European Wax Center reported strong third-quarter results with significant growth in revenue, same-store sales, and operating profit compared to fiscal years 2020 and 2019. System-wide sales increased by 21% compared to 2019, driven by new center openings, same-store sales growth, and Wax Pass purchases. The company also raised its fiscal 2021 outlook for net new center openings, system-wide sales, total revenue, Adjusted net income and Adjusted EBITDA.

  • System-wide sales increased 60.0% and 21.3% from the third quarters of fiscal 2020 and 2019, respectively.
  • Same-store sales rose 10.6% from the third quarter of fiscal 2019, accelerating 3.7 percentage points from the second quarter of fiscal 2021.
  • Total revenue increased 61.0% and 20.4% from the third quarters of fiscal 2020 and 2019, respectively.
  • Adjusted EBITDA increased 352.6% and 39.3% from the third quarters of fiscal 2020 and 2019, respectively.

Headline financials

Total Revenue

$49M

Previous: $30.5M+61.0%
EPS (adj)

$0.27

Previous: -$0.21+225.7%
System-wide Sales

$219M

Previous: $181M+21.3%
Same-store Sales Growth

10.6%

Previous: 0.0%
Adjusted EBITDA

$16.5M

Previous: $11.9M+39.3%
Total Centers

833

No prior period
Net Income

-$9.27M

Previous: -$6.54M-41.7%

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$49M

Q3 2021+61%vs Q3 2020
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

European Wax Center · $49M total across 4 segments · Q3 2021

  • Product Sales
    $27.6M+24.9%
  • Royalty Fees
    $11.9M+17.1%
  • Marketing Fees
    $6.76M+16.6%
  • Other Revenue
    $2.7M+3.8%

Forward guidance

The Company's outlook incorporates an appropriate level of prudence into its guidance for the balance of the year. However, this outlook does not contemplate a meaningful change from today in consumer behavior driven by renewed concerns about the COVID-19 pandemic, nor does it include further impacts from incremental tightening in the labor market beyond what we see today.

Tailwinds

  • Total Revenue $175.5 million - $178.5 million
  • Adjusted Net Income $28.0 million - $29.0 million
  • Adjusted EBITDA $61.0 million - $63.5 million
  • New Center Openings, Net 57
  • System-Wide Sales $795.0 million - $798.0 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 Q3 2021

Historical avgQ3 2021

+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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