Core Insights - European Wax Center, Inc. (EWCZ) reported revenue of $59.87 million for the quarter ended June 2024, reflecting a year-over-year increase of 1.3% but a revenue surprise of -2.29% compared to the Zacks Consensus Estimate of $61.27 million [1] - Earnings per share (EPS) for the quarter was $0.15, significantly higher than the $0.08 EPS from the same quarter last year, resulting in an EPS surprise of +87.50% [1] Revenue Performance - Same-store sales increased by 1.6%, which was below the average estimate of 2.5% from five analysts [3] - Total center count at the end of the quarter was 1,059, slightly below the average estimate of 1,063 from three analysts [4] - The company opened 8 new centers, which was lower than the average estimate of 12 based on two analysts [5] Revenue Breakdown - Revenue from marketing fees was $8.14 million, exceeding the average estimate of $8.10 million, with a year-over-year increase of +2.9% [6] - Revenue from royalty fees was $14.47 million, below the estimated $14.96 million, but still showing a +2.3% change year-over-year [7] - Revenue from product sales was $33.92 million, also below the average estimate of $34.96 million, with a +0.6% year-over-year change [8] - Other revenue amounted to $3.34 million, slightly above the average estimate of $3.32 million, representing a +1.2% year-over-year change [9] Stock Performance - Shares of European Wax Center have declined by -30% over the past month, contrasting with the Zacks S&P 500 composite's decline of -3.2% [9] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [9]
European Wax Center (EWCZ) Reports Q2 Earnings: What Key Metrics Have to Say