Core Insights - European Wax Center, Inc. reported solid financial performance in Q1 2025, with a focus on strategic priorities and franchisee support [3][6] - The company reiterated its full-year financial outlook, indicating confidence in achieving growth despite macroeconomic challenges [3][8] Financial Performance - System-wide sales reached $225.9 million, a 2.1% increase from $221.4 million in the prior year [6][7] - Total revenue decreased by 0.9% to $51.4 million from $51.9 million year-over-year [6][7] - Same-store sales increased by 0.7% [6][7] - GAAP net income was $2.6 million, down 29.7% from $3.7 million [6][7] - Adjusted net income increased by 10.3% to $9.5 million from $8.6 million [6][7] - Adjusted EBITDA rose by 7.2% to $18.8 million from $17.5 million [6][7] Balance Sheet and Cash Flow - The company ended the quarter with $58.3 million in cash and cash equivalents and $6.5 million in restricted cash [5][6] - Net cash provided by operating activities totaled $12.7 million during the quarter [5][6] - Total borrowings under senior secured notes amounted to $389.0 million, with no outstanding borrowings under the revolving credit facility [5][6] Outlook - The company expects system-wide sales for fiscal 2025 to be between $940 million and $960 million [8] - Total revenue is projected to be between $210 million and $214 million [8] - Same-store sales are anticipated to range from 0.0% to 2.0% [8] - The adjusted net income outlook is set at $31 million to $33 million [8] - Franchisees are estimated to open 10 to 12 new centers while closing 40 to 60 centers, leading to a net center closure of 28 to 50 for fiscal 2025 [9]

Core Viewpoint - European Wax Center, Inc. (EWCZ) is expected to report a quarterly earnings per share (EPS) of $0.05, reflecting a year-over-year decline of 61.5%, with revenues projected at $49.4 million, down 4.8% from the previous year [1]. Earnings Projections - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not reassessed their initial estimates during this period [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts predict 'Revenue- Marketing fees' will reach $6.78 million, indicating a year-over-year decline of 4.5% [4]. - 'Revenue- Royalty fees' is estimated to be $12.26 million, reflecting a year-over-year change of -1.5% [5]. - The consensus for 'Revenue- Product sales' is $27.69 million, showing a decline of 6.1% from the prior-year quarter [5]. - The average prediction for 'Ending center count' is 1,061, compared to 1,051 from the previous year [5]. Stock Performance - Over the past month, shares of European Wax Center have decreased by 1.4%, while the Zacks S&P 500 composite has increased by 13.7% [6]. - EWCZ currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6].

PLANO, Texas, April 30, 2025 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services in the United States, today announced that it plans to report first quarter fiscal 2025 financial results before the market opens on Wednesday, May 14, 2025. 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 information, analysts should c ...

"We are thrilled to enhance our EWC SLOW® line with the launch of the Face & Body Bi-Phase Moisturizer," said Chris Morris, Chief Executive Officer of European Wax Center. "This unique formula is clinically tested and demonstrated to help nourish the skin and provide all-day moisturization, which, in turn, delivers a smoother, more comfortable waxing experience for our guests. Our dedication to skincare innovation is one of the many reasons guests trust EWC to reveal their most beautiful skin, and the bi-ph ...

USA Today and Plant-A Insights Group name waxing industry leader as one of the most trusted brands in the United States PLANO, Texas, March 27, 2025 /PRNewswire/ -- European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services in the United States, has been named one of America's Most Trusted Brands in 2025 by USA Today.In partnership with Plant-A Insights Group, America's Most Trusted Brands 2025 recognizes brands in the United States that consumers trust most ...

Group 1 - European Wax Center, Inc. has won the NewBeauty Award for its EWC TREAT® Brightening Ingrown Hair Wipes, recognized as the "Best Ingrown Hair Treatment" in the 2025 NewBeauty Awards [1][3] - The EWC TREAT® Brightening Ingrown Hair Wipes feature an enhanced formula that includes vitamin C, azelaic, kojic, and lactic acids, aimed at improving skin tone and preventing ingrown hairs [2][4] - The company operates over 1,000 centers across 45 states, performing more than 23 million services annually, and generated sales of $951 million in fiscal 2024 [5] Group 2 - The NewBeauty Awards program has expanded significantly since its inception in 2010, growing from 75 winners to 395 in the current year, highlighting the rigorous testing and selection process by NewBeauty editors [3][6] - The EWC TREAT® Brightening Ingrown Hair Wipes are priced at $34.50 and are available at all European Wax Center locations and online [4]

PLANO, Texas, March 21, 2025 (GLOBE NEWSWIRE) -- European Wax Center, Inc. (NASDAQ: EWCZ) (the “Company” or “European Wax Center”), the leading franchisor and operator of out-of-home waxing services in the United States, announced that on March 21, 2025, and in connection with the previously announced appointment of Katie Mullen as the Company’s Chief Commercial Officer, the Company’s Board of Directors approved grants of (i) restricted stock units (“RSUs”) covering 160,000 shares of the Company’s Class A c ...

Core Viewpoint - European Wax Center, Inc. (EWCZ) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on upward trends in earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2][3]. - The recent upgrade reflects an improvement in European Wax Center's earnings outlook, which could lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates for European Wax Center suggest an improvement in the company's underlying business, which should be positively reflected in its stock price [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of European Wax Center to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [11]. Recent Earnings Estimate Changes - For the fiscal year ending December 2025, European Wax Center is expected to earn $0.39 per share, reflecting a -13.3% change from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 0.9%, indicating positive sentiment among analysts [9].

Financial Data and Key Metrics Changes - In Q4, system-wide sales increased by 1.1% to $229.3 million, while same-store sales rose by 0.8% [38] - Total revenue decreased by 4.6% to $49.7 million, impacted by softer retail product sales and the removal of a COVID-related surcharge [39] - Q4 gross margin improved by 190 basis points to 74.3%, primarily due to cost savings [40] - Adjusted EBITDA for Q4 decreased by 1.6% to $19 million, with an adjusted EBITDA margin increasing by 390 basis points to 38.1% [41] - Full-year adjusted net income increased by 15.2% to $25.6 million, driven by higher operating income and lower state income taxes [46] Business Line Data and Key Metrics Changes - Franchisees opened three net new centers in Q4, resulting in 2.2% net unit growth to 1,067 centers across 45 states for the full year [42] - The company expects 10 to 12 gross new centers to open in fiscal 2025, with an estimated 40 to 60 closures [49] Market Data and Key Metrics Changes - System-wide sales for fiscal 2025 are expected to be between $940 million and $960 million, representing flat year-over-year growth at the midpoint [50] - Same-store sales are projected to be flat to positive 2% [51] Company Strategy and Development Direction - The company aims to develop a robust data-rich marketing engine, cultivate a more effective service-based infrastructure, and implement a sophisticated development approach [21][28] - The focus is on thoughtful and profitable expansion, with an emphasis on franchisee success and operational excellence [27][29] - The company is committed to providing regular updates on progress and strategy [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by a declining transaction volume and profitability among franchisees, attributing it to a tougher macro environment [17] - The company views 2025 as a transitional year to solidify the foundation for sustainable growth, with expectations to reignite unit growth by the end of 2026 [33][58] Other Important Information - The company has appointed new executives, including a new CFO and Chief Commercial Officer, to strengthen its leadership team [30][31] - The company has a solid cash position with $49.7 million in cash and a fully undrawn $40 million revolver [47] Q&A Session Summary Question: Store closure guidance for 2025 and performance in California - Management is comfortable with the range of 40 to 60 closures and believes that executing on priorities will lead to growth in 2026 [65][66] - California is experiencing more inflationary pressure, impacting franchisee profitability [71][74] Question: Four-wall economics and tax impact on SG&A - Mature units have strong unit economics with average unit volumes over $1 million and cash-on-cash returns around 40% [80] - An adjustment to SG&A related to franchise taxes was largely offset by state taxes, resulting in a net impact of around $60,000 [85] Question: Successful franchisee characteristics and potential for European Wax to buy stores - Successful franchisees are committed to service and detail-oriented, with a strong partnership with the franchisor needed for success [92][96] - The company is open to buying stores in the future but is currently focused on other priorities [99] Question: Pipeline of unopened units and consumer behavior - The pipeline remains unchanged with 10 to 12 new unit openings expected, and management does not see a significant shift in consumer behavior or competitive landscape [114][113] Question: Promotional strategy and pricing - The company is improving its marketing approach and data pipeline to evaluate promotional effectiveness, with a focus on smarter pricing strategies [128][129] Question: Core guest behavior and cost savings - Core guests remain stable in spending and frequency, with opportunities to re-engage lapsed guests [135] - Cost savings have been achieved through negotiations on product costs, with expectations for modest gross margin improvement in 2025 [134]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 4, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40714 EUROPEAN WAX CENTER, INC. (Exact name of Registrant as specified in its Charter) Delaware 86-3150064 (State or other jurisdiction ...