NASDAQ$EWCZ

European Wax Center Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

European Wax Center reported third quarter results in line with revised expectations and reiterated fiscal year 2024 financial outlook while updating net new centers outlook.

European Wax Center's third quarter results aligned with revised expectations. System-wide sales decreased slightly, and total revenue also saw a minor decrease. The company is focused on driving new guests and ticket growth to enhance unit economics and financial returns for franchise partners.

  • Net new centers increased 3.7% to 1,064 total centers in 45 states.
  • System-wide sales decreased 0.2% to $240.2 million.
  • Total revenue decreased 0.5% to $55.4 million.
  • GAAP net income decreased 50.7% to $2.0 million.

Headline financials

Total Revenue

$55.4M

Previous: $55.7M-0.5%
EPS (adj)

$0.08

Previous: $0.12-33.3%
System-wide Sales

$240M

Previous: $241M-0.2%
Same-store Sales Growth

0.0%

Previous: 3.4%-100.0%
Adjusted EBITDA

$18.4M

Previous: $19.3M-4.7%
Adjusted Net Income

$9.35M

No prior period
Net Income Margin

3.7%

No prior period
Adjusted EBITDA Margin

33.2%

Previous: 34.6%-4.0%
Total Centers

1.1K

No prior period
Net Income

$2M

Previous: $4.2M-52.4%
Operating Income

$9.47M

Previous: $12.5M-24.1%
Gross Profit

$35.4M

Previous: $35M+1.1%

Revenue & EPS history

European Wax Center · Revenue · Quarterly

$55.4M

Q3 2024-0.5%vs Q3 2023
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 reiterates its previous financial outlook for fiscal year 2024.

Tailwinds

  • System-Wide Sales $930 million to $950 million
  • Total Revenue $216 million to $221 million
  • Same-Store Sales (1.5)% to 0.5%
  • Adjusted Net Income $19 million to $22 million
  • Adjusted EBITDA $70 million to $74 million

Headwinds

  • The Company expects an additional 5 to 10 closures during the balance of the year, translating to 17 to 22 net new center openings compared to a previous outlook of 27 to 32 net new center openings.

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 2024

Historical avgQ3 2024

+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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