PLANO, Texas, May 01, 2024 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ:EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, today announced that it plans to report first quarter fiscal year 2024 financial results before the market opens on Wednesday, May 15, 2024. Following the release, the company's management will host a conference call at 8:00 a.m. ET/7:00 a.m. CT to review the results. To access the conference call dial-in informat ...

PLANO, Texas, April 22, 2024 /PRNewswire/ -- European Wax Center (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, is proud to be Certified™ by Great Place To Work® for the second year in a row. The prestigious award is based on the sentiment of current associates and their experience working at European Wax Center. Great Place to Work is the global authority on workplace culture, employee experience, and the leadership behaviors pro ...

PLANO, Texas, April 4, 2024 /PRNewswire/ -- European Wax Center (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, is proud to be recognized by Entrepreneur for a consecutive year as one of the Fastest-Growing Franchises. European Wax Center ranked at #19, up from last year's ranking at #30. Entrepreneur's Fastest Growing Franchises is one of Entrepreneur's most popular rankings with franchise buyers eagerly anticipating the unveiling ...

European Wax Center wins coveted beauty award in the subcategory, "Best Ingrown Hair Treatment" PLANO, Texas, April 3, 2024 /PRNewswire/ -- European Wax Center (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, is proud to announce its NewBeauty Award win. The brand's most recent product innovation, EWC TREAT® Ingrown Hair Mist, hit the market in 2023 and has been named "Best Ingrown Hair Treatment" in the 2024 NewBeauty Awards. The E ...

For the quarter ended December 2023, European Wax Center, Inc. (EWCZ) reported revenue of $56.33 million, up 5.2% over the same period last year. EPS came in at $0.10, compared to $1.21 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $53.98 million, representing a surprise of +4.34%. The company delivered an EPS surprise of +25.00%, with the consensus EPS estimate being $0.08.While investors closely watch year-over-year changes in headline numbers -- revenue and earn ...

European Wax Center, Inc. (EWCZ) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.09, delivering no surprise.Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - In fiscal 2023, the company achieved system-wide sales of $955 million, a 6.3% increase, and total revenue of $221 million, up 6.6% from the previous year [93][99] - Adjusted EBITDA for the year was $76 million, reflecting a 6.1% increase compared to $71.6 million in fiscal 2022 [93][136] - GAAP net income rose 59.1% to $3.6 million, while adjusted net income decreased from $48.7 million in Q4 2022 to $6 million in Q4 2023 [39][136] Business Line Data and Key Metrics Changes - The company opened 100 net new centers in 2023, achieving over 10% unit growth for the second consecutive year [5][99] - Same-store sales increased by 2.9% for the full year, driven by new center openings and increased guest spending [93][99] - Fourth quarter same-store sales rose by 1.3%, indicating stable performance in existing locations [104] Market Data and Key Metrics Changes - The company plans to open 75 to 80 net new centers in 2024, primarily from existing franchisees, maintaining a high-single digit growth algorithm [40][100] - The company expects system-wide sales for 2024 to be between $1 billion and $1.25 billion, representing a growth rate of approximately 6.5% to 9% [94] Company Strategy and Development Direction - The company is focused on driving visits from both new and existing guests while refining its new center opening best practices to enhance unit economics [35][90] - A new media agency has been engaged to streamline marketing efforts aimed at increasing in-center reservations and guest acquisition [7][133] - The company is piloting laser hair removal services, viewing it as an additive opportunity to attract new guests and increase revenue from existing customers [38][103] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the core business, noting that core guests remained committed to their personal care routines despite macroeconomic challenges [99][101] - The company anticipates a modest gross margin expansion and expects to see adjusted EBITDA margin expansion of approximately 130 basis points for the core waxing business in 2024 [106] - Management highlighted the importance of adapting to market conditions and franchisee needs while maintaining a focus on profitability and growth [141][148] Other Important Information - The company ended fiscal 2023 with $52.7 million in cash and $394 million outstanding under senior secured notes, with a net leverage of 4.4x adjusted EBITDA [10][106] - The company has implemented a new data-driven pre-opening playbook to enhance the success of new center openings [90][131] Q&A Session Summary Question: Insights on brow tinting and laser testing - Management noted that brow tinting is being tested to increase revenue per visit and attract new guests, with positive initial results [44] Question: Expectations for EBITDA and margin expansion - Management indicated that excluding laser investments, they expect approximately 130 basis points of margin expansion beyond 2024 [24][106] Question: Market pricing strategies - Management stated that pricing adjustments will be monitored, with potential recommendations based on market conditions and franchisee feedback [27][122] Question: Trends in guest cohorts and sales guidance - Management confirmed that core guests remain strong, and they are focused on driving new guest acquisition and increasing frequency among existing guests [50][83] Question: Staffing and hiring trends - Management reported that staffing levels are adequate, with a focus on retaining experienced wax specialists to support growth [116][146]

EXHIBIT 99.1 European Wax Center, Inc. Reports Fourth Quarter and Fiscal Year 2023 Results Issues fiscal 2024 outlook Fiscal Year 2023 versus 2022 Plano, TX, March 6, 2024 - Today, European Wax Center, Inc. (NASDAQ: EWCZ), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, reports financial results for the 14 and 53 weeks ended January 6, 2024. David Willis, Chief Executive Officer of European Wax Center, Inc. stated: "European Wax Center delivered a ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) European Wax Center, Inc. is the largest U.S. franchisor of out-of-home waxing services, operating a highly-franchised, asset-light model - The company operates **1,044 locations** across 45 states as of January 6, 2024, with **99% (1,038)** being franchised centers and six being corporate-owned[11](index=11&type=chunk) System-Wide Sales and Center Growth (2021-2023) | Metric | Fiscal Year 2023 | Fiscal Year 2022 | Fiscal Year 2021 | | :--- | :--- | :--- | :--- | | System-Wide Sales | $955 million | $899 million | $797 million | | Total Centers | 1,044 | 944 | 853 | | Total Revenue | $221 million | $207 million | $179 million | | Net Income | $12 million | $14 million | $4 million | | Adjusted EBITDA | $76 million | $72 million | $64 million | - The company believes its total addressable domestic market is over **$18 billion**, with its current market share at approximately **5%**; the market is highly fragmented, with over **10,000 independent operators**[18](index=18&type=chunk)[19](index=19&type=chunk) - Key growth strategies include expanding the national footprint, increasing brand awareness through performance and brand marketing, driving system-wide sales via Wax Pass adoption and data analytics, and expanding profit margins through its scalable infrastructure[30](index=30&type=chunk)[33](index=33&type=chunk)[36](index=36&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company's operations are subject to numerous risks, primarily stemming from its heavy reliance on the financial success and operational compliance of its franchisees - **Franchisee Dependence:** Nearly all centers are franchisee-owned, making the company highly dependent on their operational and financial success; franchisee failure, non-compliance, or inability to grow could harm the brand and revenue[80](index=80&type=chunk)[174](index=174&type=chunk) - **Cybersecurity and Data Privacy:** The business is heavily dependent on IT systems for operations and payment processing; a failure, interruption, or security breach could impair operations, damage the company's reputation, and lead to significant costs and litigation, especially concerning guest data and PII[112](index=112&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - **Competition:** The company faces high levels of competition from over **10,000 independent waxing operators**, nearly **100,000 beauty salons**, and various alternative hair removal solutions, which could impact market share and profitability[104](index=104&type=chunk) - **Organizational Structure & TRA:** As a holding company, its principal asset is its interest in EWC Ventures; it is dependent on distributions from EWC Ventures to pay taxes and make significant payments under the Tax Receivable Agreement (TRA) to pre-IPO members, which could amount to an estimated **$269.0 million** over 18 years[211](index=211&type=chunk)[221](index=221&type=chunk)[223](index=223&type=chunk) - **Supply Chain:** The company depends on a limited number of key international suppliers for its proprietary Comfort Wax and branded retail products; any disruption, price increase, or quality issue could adversely affect operations and results[192](index=192&type=chunk)[193](index=193&type=chunk) [Unresolved Staff Comments](index=75&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - None[251](index=251&type=chunk) [Properties](index=77&type=section&id=Item%202.%20Properties) As of January 6, 2024, the company's network consisted of 1,044 centers; the company holds leases for its six corporate-owned centers and its corporate headquarters in Plano, Texas - As of January 6, 2024, there were **1,044 franchised and corporate-owned centers**; the company leases six actively operating corporate-owned centers and its corporate headquarters in Plano, Texas[257](index=257&type=chunk) [Legal Proceedings](index=77&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to litigation from time to time in the ordinary course of business - The company may be a defendant in litigation arising from the ordinary course of business but does not expect any material impact from the resolution of these proceedings[258](index=258&type=chunk) [Mine Safety Disclosures](index=77&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[259](index=259&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=78&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock trades on the Nasdaq under the symbol "EWCZ"; in April 2022, a special cash dividend of $3.30 per share was declared - The company's Class A common stock is traded on the Nasdaq Stock Market LLC under the symbol "**EWCZ**"[262](index=262&type=chunk) - On April 11, 2022, the Board declared a special cash dividend of **$122.2 million**, or **$3.30 per share** of Class A common stock[263](index=263&type=chunk) - During the fourth quarter of 2023, the company repurchased **1,690,896 shares** of Class A common stock for approximately **$23.6 million**, completing its **$40.0 million** share repurchase plan authorized in November 2022[271](index=271&type=chunk) [Reserved](index=81&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=82&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2023, total revenue grew 6.6% to $221.0 million, driven by 100 net new center openings and a 2.9% increase in same-store sales Key Business Metrics (Fiscal Year 2023 vs. 2022) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | System-wide centers (end of period) | 1,044 | 944 | | System-wide sales | $955.0M | $898.6M | | Same-store sales growth | 2.9% | 10.4% | | New center openings (net) | 100 | 91 | | Average Unit Volume (AUV) | $961K | $1,000K | Consolidated Results of Operations (Fiscal Year 2023 vs. 2022) (in thousands) | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Total revenue | $221,024 | $207,351 | | Income from operations | $44,856 | $40,276 | | Net income | $12,346 | $13,613 | | Adjusted EBITDA | $76,014 | $71,611 | - Total revenue increased by **$13.7 million (6.6%)** in FY2023, primarily due to **100 net new center openings** and an additional offering of medical products[316](index=316&type=chunk) - The company's primary sources of liquidity are cash from operations and its securitized financing facility; as of January 6, 2024, cash and cash equivalents were **$52.7 million**[334](index=334&type=chunk) - As of January 6, 2024, the company recorded a liability of **$206.6 million** for expected future payments under the Tax Receivable Agreement (TRA)[380](index=380&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=109&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate changes, as its Variable Funding Notes bear a variable rate, although they were undrawn as of January 6, 2024 - The primary market risk is interest rate sensitivity related to the Variable Funding Notes, which bear a variable interest rate; however, these notes were undrawn as of January 6, 2024[384](index=384&type=chunk)[385](index=385&type=chunk) - The company is exposed to commodity price risk, as the pricing of wax from significant suppliers can be adjusted based on raw material costs[387](index=387&type=chunk) [Financial Statements and Supplementary Data](index=110&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for the fiscal years ended January 6, 2024, December 31, 2022, and December 25, 2021, including the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Cash Flows, Statements of Equity, and the accompanying notes Consolidated Balance Sheet Highlights (as of Jan 6, 2024) (in thousands) | Metric | Amount | | :--- | :--- | | **Assets** | | | Cash and cash equivalents | $52,735 | | Total current assets | $95,497 | | Goodwill | $328,551 | | Total assets | $735,726 | | **Liabilities & Equity** | | | Long-term debt, net | $372,000 | | Tax receivable agreement liability | $206,636 | | Total liabilities | $619,114 | | Total stockholders' equity | $116,612 | Consolidated Statement of Operations Highlights (Year ended Jan 6, 2024) (in thousands) | Metric | Amount | | :--- | :--- | | Total revenue | $221,024 | | Income from operations | $44,856 | | Net income | $12,346 | | Net income attributable to European Wax Center, Inc. | $8,931 | Consolidated Statement of Cash Flows Highlights (Year ended Jan 6, 2024) (in thousands) | Metric | Amount | | :--- | :--- | | Net cash provided by operating activities | $55,602 | | Net cash used in investing activities | ($785) | | Net cash used in financing activities | ($46,383) | | Net increase in cash | $8,434 | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=163&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[563](index=563&type=chunk) [Controls and Procedures](index=163&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of January 6, 2024 - Based on an evaluation, the CEO and CFO concluded that as of January 6, 2024, the company's disclosure controls and procedures were effective[565](index=565&type=chunk) - Management concluded that as of January 6, 2024, the company's internal control over financial reporting is effective based on the COSO framework[568](index=568&type=chunk) [Other Information](index=163&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[571](index=571&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=163&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - None[572](index=572&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=165&type=section&id=Items%2010-14) The information required for Items 10 through 14 is incorporated by reference from the company's Definitive Proxy Statement for its 2024 Annual Meeting of Stockholders, which is to be filed with the SEC within 120 days after the end of the fiscal year - Information for Directors, Executive Officers, Corporate Governance (Item 10), Executive Compensation (Item 11), Security Ownership (Item 12), Certain Relationships and Related Transactions (Item 13), and Principal Accounting Fees and Services (Item 14) is incorporated by reference from the company's forthcoming proxy statement[574](index=574&type=chunk)[575](index=575&type=chunk)[576](index=576&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=166&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the exhibits filed with or incorporated by reference into the Form 10-K, including organizational documents, material contracts, and certifications - This item lists all exhibits filed as part of the annual report, including the Reorganization Agreement, Certificate of Incorporation, debt agreements, and various incentive plans[582](index=582&type=chunk) [Form 10-K Summary](index=168&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no Form 10-K summary - None[584](index=584&type=chunk)

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Is European Wax Center, Inc. (EWCZ) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. European Wax Center, Inc. is a member of our Consumer Staples group, which includes 194 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector ...