Core Insights - European Wax Center, Inc. reported financial results for the second quarter of fiscal 2025, indicating a transitional year focused on strengthening the business foundation through data-driven strategies and disciplined execution [2][3] - The company aims to drive traffic and sales growth, improve profitability for franchisees, and pursue profitable expansion [3] Financial Performance - System-wide sales decreased by 1.0% to $257.6 million from $260.2 million in the prior year period, primarily due to a decline in same-day services and retail sales [6][7] - Total revenue for the quarter was $55.9 million, down 6.6% from $59.9 million in the prior year [6][7] - Same-store sales increased by 0.3% [6][7] - GAAP net income decreased by 9.0% to $5.4 million, while adjusted net income increased by 5.6% to $11.8 million [6][7] - Adjusted EBITDA rose by 4.7% to $21.6 million, with an adjusted EBITDA margin increase of 420 basis points to 38.7% [6][7] Year-to-Date Results - For the first half of fiscal 2025, system-wide sales increased by 0.4% to $483.5 million, driven by cash collected from wax pass sales [13] - Total revenue for the year-to-date period was $107.3 million, down 3.9% from the previous year [13] - Same-store sales increased by 0.5% [13] - Net income for the first half decreased by 16.9% to $8.0 million, while adjusted net income increased by 7.9% to $21.3 million [13] Balance Sheet and Cash Flow - The company ended the second quarter with $63.9 million in cash and cash equivalents and $388.0 million in borrowings outstanding [8] - Net cash provided by operating activities totaled $15.2 million during the quarter [8] Fiscal 2025 Financial Outlook - The company updated its fiscal 2025 outlook, projecting system-wide sales between $940 million and $950 million, total revenue between $205 million and $209 million, and same-store sales growth of 0.0% to 1.0% [9][11] - The adjusted net income outlook remains between $31 million and $33 million, with adjusted EBITDA also projected between $69 million and $71 million [11] Center Openings and Closures - Franchisees opened 2 centers and closed 5 during the second quarter, maintaining a total of 1,059 centers [6][7] - For fiscal 2025, the company estimates franchisees will open 10 to 12 new centers while closing 40 to 60 centers, resulting in a net closure of 28 to 50 centers [12]

Core Viewpoint - European Wax Center, Inc. is set to report its second quarter fiscal 2025 financial results on August 13, 2025, with a conference call scheduled for 8:00 a.m. ET [1] Company Overview - European Wax Center, Inc. is the leading franchisor and operator of out-of-home waxing services in the United States, with over 1,000 centers across 44 states [3] - The company performs more than 23 million services annually, focusing on providing a professional personal care experience [3] - In fiscal 2024, the company generated sales of $951 million [3] - The company utilizes its proprietary Comfort Wax® and offers a range of products to enhance waxing results [3] - European Wax Center is recognized as a Certified™ Great Place to Work® [3]

Core Insights - European Wax Center, Inc. has been recognized in Entrepreneur Magazine's 2025 Top Franchises for Multi-Unit Owners and Best of the Best Franchises lists, highlighting its strong market position and brand reputation [1][2]. Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States, with over 1,000 locations across 45 states [5]. - The company performed more than 23 million services in the previous year and generated sales of $951 million in fiscal 2024 [5]. Franchise Performance - The brand ranked among the top 20 on Entrepreneur's Top Brands for Multi-Unit Owners list, improving its position from 2024 [2]. - It was also recognized as the top waxing franchise in the Best of the Best Franchises list [2]. Franchisee Support - European Wax Center provides robust support to its franchisees, including comprehensive training, multi-channel marketing, real estate guidance, and guest retention tools [3]. - A significant portion of franchisees are multi-unit owners, with one-fifth operating five or more centers [3]. Brand Values and Innovation - The company emphasizes its core values: caring for each other, doing the right thing, delighting guests, and having fun while being awesome [5]. - European Wax Center has developed an innovative Comfort Wax® to enhance the waxing experience, making it more efficient and less painful [5].

Core Viewpoint - European Wax Center, Inc. has appointed Angela Jaskolski as Chief Operating Officer and Kurt Smith as Chief Development Officer, both bringing extensive experience in franchise operations and development to enhance the company's growth strategy [1][4]. Group 1: Executive Appointments - Angela Jaskolski will assume the role of Chief Operating Officer on August 18, 2025, overseeing Franchise Operations, Field Training, Learning and Development, and Industry Engagement [1][2]. - Kurt Smith will take on the position of Chief Development Officer on July 22, 2025, responsible for Business Development, Real Estate, Market Planning, and Franchise Recruitment [1][3]. Group 2: Experience and Background - Ms. Jaskolski has over 20 years of executive-level experience, previously serving as Chief Store Officer at Madison Reed, where she significantly improved average unit volume (AUV) and EBITDA [2][5]. - Mr. Smith has nearly 20 years of global leadership experience, most recently as Vice President and General Manager of Pizza Hut Latin America and the Caribbean, achieving record-high profitability and franchisee engagement [3][6]. Group 3: Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States, performing over 23 million services annually [7]. - The company generated sales of $951 million in fiscal 2024 and operates more than 1,000 centers across 45 states [8].

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]

Company Overview - European Wax Center, Inc. is the leading franchisor and operator of out-of-home waxing services in the United States, with over 1,000 centers across 45 states [3] - The company performs more than 23 million services annually, providing a professional personal care experience in clean, individual waxing suites [3] - In fiscal 2024, the company generated sales of $951 million [3] Upcoming Financial Results - The company plans to report its first quarter fiscal 2025 financial results before the market opens on May 14, 2025 [1] - Following the release, management will host a conference call at 8:00 a.m. ET/7:00 a.m. CT to review the results [1] Innovation and Values - European Wax Center has revolutionized the waxing industry with its innovative Comfort Wax®, which is formulated with high-quality ingredients to enhance the waxing experience [3] - The company emphasizes its core values: We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome [3]