NASDAQ$EWCZ

European Wax Center Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter results with top-line, bottom-line and unit growth.

European Wax Center reported a 1.2% increase in total revenue to $55.7 million and a 2.4% increase in system-wide sales to $240.7 million. Net income decreased by 20.7% to $4.2 million, while Adjusted EBITDA increased by 3.4% to $19.3 million. The company updated its fiscal 2023 outlook to reflect lower-than-expected transactions.

  • Net new centers increased 12.6% to 1,026 total centers in 45 states.
  • System-wide sales of $240.7 million increased 2.4%.
  • Total revenue of $55.7 million increased 1.2%.
  • Same-store sales increased 3.4%.

Headline financials

Total Revenue

$55.7M

Previous: $138K+40274.6%
EPS (adj)

$0.12

Previous: $0.11+9.1%
System-wide Sales

$241M

No prior period
Same-store Sales Growth

3.4%

No prior period
Adjusted EBITDA

$19.3M

No prior period
Adjusted EBITDA Margin

34.6%

No prior period
Capital Expenditures

-$151K

Previous: -$143K-5.6%
Free Cash Flow

$17.5M

Previous: $3.38M+417.5%
Net Income

$4.2M

Previous: $3.52M+19.3%
Operating Income

$12.5M

Previous: -$15.1M+182.9%
Gross Profit

$35M

Previous: $138K+25230.4%
Cash & Equivalents

$70.5M

Previous: $41.6M+69.5%
Total Assets

$754M

No prior period

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$55.7M

Q3 2023+40,274.6%vs Q3 2022
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

The Company updates its previous outlook for fiscal year 2023 as follows: New Center Openings, Net 98 to 100, System-Wide Sales $945 million to $955 million, Total Revenue $217 million to $219 million, Same-Store Sales 1.5% to 2.5%, Adjusted Net Income $20.5 million to $21.5 million, Adjusted EBITDA $74.5 million to $76.0 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 2023

Historical avgQ3 2023

+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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