NASDAQ$EWCZ
European Wax Center Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Reported a strong fourth quarter and full year performance, driven by new center openings and consistent demand from core guests.
European Wax Center reported a 5.2% increase in total revenue to $56.3 million and a 59.1% increase in net income to $3.6 million for the fourth quarter of fiscal year 2023. The company ended the year with 1,044 centers, representing a 10.6% increase year-over-year.
- Franchisees opened 18 net new centers, ending the year with 1,044 centers, a 10.6% increase year-over-year.
- System-wide sales increased by 7.2% to $241.7 million, driven by new center openings and increased guest spending.
- Total revenue grew by 5.2% to $56.3 million.
- Net income increased by 59.1% to $3.6 million.
Headline financials
Revenue & EPS history
European Wax Center · Revenue · Quarterly
$56.3M
Revenue by segment
European Wax Center · $55.7M total across 4 segments · Q3 2023
- Product Sales$31.9M+1.0%57.2%
- Royalty Fees$13.3M+2.0%24.0%
- Marketing Fees$7.55M+2.9%13.6%
- Other Revenue$2.93M-4.0%5.3%
Forward guidance
The Company provides the following outlook for fiscal year 2024: New Center Openings, Net 75 to 80; System-Wide Sales $1,000 million to $1,025 million; Total Revenue $225 million to $232 million; Same-Store Sales 2% to 5%; Adjusted Net Income(2) $22 million to $25 million; Adjusted EBITDA(3) $75 million to $80 million
Tailwinds
- New Center Openings, Net 75 to 80
- System-Wide Sales $1,000 million to $1,025 million
- Total Revenue $225 million to $232 million
- Same-Store Sales 2% to 5%
- Adjusted Net Income(2) $22 million to $25 million
Headwinds
- Adjusted EBITDA(3) $75 million to $80 million
- Fiscal 2022 and Fiscal 2023 each included a 53rd week in the fourth quarter.
- The Company estimates the 53rd week contribution to the top and bottom line is approximately equal to the contribution from an average fourth quarter week.
- The Company’s current outlook assumes no meaningful change in consumer behavior driven by inflationary pressures
- The Company’s current outlook assumes no further impacts from incremental tightening in the labor market beyond what we see today.
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 Q4 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
| 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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