European Wax Center, Inc. Class A ( (EWCZ) ) has released its Q4 earnings. Here is a breakdown of the information European Wax Center, Inc. Class A presented to its investors.
European Wax Center, Inc. is a leading franchisor and operator of out-of-home waxing services in the United States, known for its innovative Comfort Wax® and a network of over 1,000 centers across 45 states. The company recently released its financial results for the fourth quarter and fiscal year 2024, highlighting a stable performance despite a slight decrease in system-wide sales and total revenue compared to the previous year. Notably, the company saw a 21.9% increase in GAAP net income and a 15.2% rise in adjusted net income, indicating improved profitability.
Key financial metrics from the report reveal a 0.2% increase in same-store sales and a 2.2% growth in net new centers, totaling 1,067 centers. However, system-wide sales decreased by 0.4% to $951 million, and total revenue saw a 1.9% decline to $216.9 million. Adjusted EBITDA slightly decreased by 0.7% to $75.5 million, while the company managed to reduce its interest expense and income tax expense, contributing to a healthier bottom line.
During the fourth quarter, the company opened 10 new centers and closed 7, with system-wide sales decreasing by 5.1% due to the prior year’s 14-week period. The company also repurchased approximately 1.6 million shares of its Class A Common Stock, reflecting a strategic capital allocation move.
Looking ahead, European Wax Center anticipates fiscal 2025 to be a transitional year, with plans to open 10 to 12 new centers while closing 40 to 60. The company aims to enhance its marketing strategies and support infrastructure to drive traffic and improve profitability. Management remains optimistic about the long-term growth potential, focusing on a data-driven approach to expand its market presence and deliver value to stakeholders.