NASDAQ$EWCZ
European Wax Center Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
European Wax Center's Q3 2022 performance reflected strength and resilience amidst a dynamic macroeconomic backdrop, driven by marketing initiatives and continued demand from franchisees.
European Wax Center, Inc. reported a 7.3% increase in system-wide sales, reaching $235.2 million, and a 12.3% increase in total revenue to $55.0 million for the third quarter of fiscal 2022. The company's net income was $5.3 million, and Adjusted EBITDA reached $18.6 million, a 12.6% increase from the prior year period. They also raised full year expectations for new center openings and announced a $40 million share repurchase program.
- System-wide sales increased by 7.3% to $235.2 million compared to the prior year period.
- Total revenue increased by 12.3% to $55.0 million compared to the prior year period.
- The company opened 18 net new centers, bringing the total to 911 centers, a 9.4% increase year-over-year.
- Net income was $5.3 million, a significant increase from the net loss of $9.3 million in the prior year period.
Headline financials
Revenue & EPS history
European Wax Center · Revenue · Quarterly
$138K
Revenue by segment
European Wax Center · $55M total across 4 segments · Q3 2022
- Product Sales$31.6M+14.3%57.3%
- Royalty Fees$13.1M+9.6%23.8%
- Marketing Fees$7.34M+8.6%13.3%
- Other Revenue$3.05M+13.2%5.5%
Forward guidance
European Wax Center provided its fiscal year 2022 outlook, including estimates for new center openings, system-wide sales, total revenue, same-store sales, adjusted net income and adjusted EBITDA.
Tailwinds
- New Center Openings, Net: 88 to 90
- System-Wide Sales: $885 million to $895 million
- Total Revenue: $202 million to $205 million
- Same-Store Sales: Approximately 9.5%
- Adjusted EBITDA: $70 million to $71 million
Headwinds
- Fiscal 2022 guidance includes a 53rd week in the fourth quarter.
- The Company estimates its contribution to the top and bottom line will be worth approximately one half of an average fourth quarter week.
- The Company's outlook assumes no meaningful change from today in consumer behavior driven by inflationary pressures or the COVID-19 pandemic
- The Company's outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
- Adjusted net income outlook assumes negligible corporate tax expense for fiscal 2022.
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 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
| 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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