Core Insights - XWELL celebrates the grand opening of its new wellness center in Bloomingdale Square, Florida, marking a significant step in its expansion strategy in the state [1][4][5] Group 1: Company Expansion - The Bloomingdale center is part of XWELL's ongoing strategy to expand its brick-and-mortar presence, following recent openings in Waterford and Clearwater [4][5] - The new location will offer a full suite of wellness services, including facials, waxing, and medical services such as Botox and Dermal Fillers, with plans for additional services in the future [4][3] Group 2: Community Engagement - The grand opening event includes immersive experiences such as live demonstrations, personalized skincare consultations, and complimentary product sampling [2][3] - Attendees will receive gift bags while supplies last, enhancing community engagement and customer experience [4] Group 3: Company Overview - XWELL, Inc. operates a portfolio of wellness brands focused on health, beauty, and self-care, redefining modern wellness experiences through innovation and accessibility [6]

Core Points - XWELL is celebrating the grand opening of its new wellness center in Orlando, Florida, on September 5, 2025, featuring live demonstrations and participation from the Orlando Magic [1][2][3] - The new location at Waterford Lakes Town Center will offer a variety of wellness services, including facials, massages, and waxing, with plans to introduce injectables, IV therapy, and compression services in the future [4][5] - This opening follows the successful launch of XWELL's Clearwater location, marking the company's continued expansion in Florida and its commitment to providing accessible wellness solutions [5][6] Company Overview - XWELL, Inc. operates a portfolio of wellness brands focused on health, beauty, and self-care, including Xpres Spa and Naples Wax Center, and aims to redefine the modern wellness experience through innovation and accessibility [6]

Financial Performance - European Wax Center, Inc. reported revenue of $55.91 million for the quarter ended June 2025, reflecting a year-over-year decline of 6.6% [1] - The EPS for the same period was $0.27, an increase from $0.15 a year ago, indicating a positive trend in earnings [1] - The reported revenue fell short of the Zacks Consensus Estimate of $56.93 million, resulting in a surprise of -1.79% [1] - The company achieved an EPS surprise of +42.11%, with the consensus EPS estimate being $0.19 [1] Key Metrics - Same-store sales were reported at 0.3%, outperforming the estimated -0.4% by four analysts [4] - System-wide sales reached $257.6 million, slightly above the average estimate of $257.31 million based on three analysts [4] - The ending center count was 1,059, exceeding the estimated 1,054 by two analysts [4] - Revenue from marketing fees was $8.11 million, surpassing the estimated $7.79 million, but representing a -0.4% change year-over-year [4] - Revenue from royalty fees was $14.28 million, compared to the estimated $14.02 million, reflecting a -1.3% change year-over-year [4] - Product sales revenue was $30.52 million, below the average estimate of $31.29 million, indicating a -10.1% year-over-year change [4] - Other revenue was reported at $3.01 million, slightly below the estimated $3.22 million, with a year-over-year change of -9.9% [4] Stock Performance - Shares of European Wax Center have returned -14.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - The TJX Companies, Inc. is expected to report growth in both revenue and earnings for the second quarter of fiscal 2026, with revenues estimated at $14.1 billion, reflecting a 4.5% increase year-over-year [1] - The consensus estimate for earnings per share is stable at $1.01, indicating a 5.2% rise compared to the same period last year [2] Group 1: Business Performance - The company has been focusing on providing an exceptional shopping experience and unmatched value, leading to increased customer transactions and loyalty [3] - The apparel and home categories are performing well, with HomeGoods' net sales estimated at $2.2 billion for the fiscal second quarter, up 4.8% year-over-year [3] - TJX anticipates consolidated comparable sales growth of 2-3% and consolidated sales between $13.9 billion and $14 billion for the second quarter [5][10] Group 2: Growth Strategies - The company is benefiting from an aggressive expansion strategy and a growing e-commerce presence, which are contributing to sustained growth [4] - TJX has a strong inventory position, allowing it to capitalize on market opportunities and introduce new product assortments both in stores and online [4] Group 3: Financial Outlook - Earnings per share for the second quarter are projected to be in the range of $0.97 to $1.00, reflecting a year-over-year increase of 1-4% [5][10] - The management has projected a pretax profit margin between 10.4% and 10.5%, which represents a decline of 40-50 basis points from the previous year's margin of 10.9% [6]

Core Insights - European Wax Center (EWCZ) and Sally Beauty Holdings (SBH) target different segments within the beauty and personal care industry, with EWCZ focusing on a service-driven model through franchised waxing centers, while SBH emphasizes retailing professional-grade beauty products [1][2] European Wax Center (EWCZ) - EWCZ is developing a data-rich, digital-first marketing platform to enhance guest acquisition, introducing new tools in Q1 2025 to measure advertising effectiveness and reduce cost per acquisition [3] - The company is enhancing franchisee profitability and operational support by expanding the franchisee support team and increasing engagement with the learning management system by 50% [4] - EWCZ is adopting a disciplined expansion strategy, targeting underpenetrated areas for new center openings in 2026, supported by improved market planning tools and a rigorous site approval process [5] - Despite strategic advancements, EWCZ faces rising SG&A costs and elevated interest expenses, leading to a projected net reduction in center count for 2025 [6] - EWCZ's stock gained 54.8% over three months, outperforming SBH's 27.2% gain, reflecting strength in its digital and franchise model [9][16] - The Zacks Consensus Estimate for EWCZ's 2025 earnings per share (EPS) indicates a year-over-year growth of 35.6%, with estimates remaining unchanged at 61 cents [12] Sally Beauty Holdings (SBH) - SBH is focused on enhancing customer centricity, accelerating high-margin owned brand growth, and improving operational efficiency, with global e-commerce sales reaching $94 million in Q2 fiscal 2025, a 6% increase [7] - The company is executing a brand refresh starting May 2025 to enhance its position as a beauty destination, with positive feedback from initial store updates in Orlando [8] - Operational excellence is a priority for SBH, with the Fuel for Growth program delivering $20 million in pre-tax savings in the first half of fiscal 2025, and adjusted SG&A declining by $11 million in Q2 [10] - Despite these efforts, SBH is navigating a challenging macro environment with cautious consumer spending and softness in hair care categories [11] - The Zacks Consensus Estimate for SBH's fiscal 2025 EPS suggests a year-over-year growth of 3.6%, with estimates remaining unchanged at $1.75 [14] Comparative Analysis - EWCZ's forward P/E ratio is 7.51X, higher than SBH's 5.52X, indicating a market premium for EWCZ's growth potential [17] - EWCZ is better positioned for long-term growth due to its franchise-based model and digital marketing execution, while SBH's strengths in owned brands and cost control may be limited by softer category trends [19]

Core Insights - European Wax Center, Inc. (EWCZ) is undergoing a significant marketing transformation, showing early signs of improvement in guest trends after implementing a new advertising effectiveness platform in Q1 FY25 [1][7] - The company is focusing on data-driven, digital-first marketing strategies, which include enhanced measurement tools that connect media impressions to in-center behavior, leading to smarter marketing spend and reduced acquisition costs [2][7] - EWCZ's marketing efforts are closely integrated with franchisee operations, utilizing new support tools and communication platforms, with plans for a major ad campaign during the summer to boost traffic recovery [3] Marketing Efficiency Comparison - Coty Inc. (COTY) is shifting its marketing strategy towards high-ROI categories while reducing focus on lower-return segments, facing challenges from inconsistent demand and global channel fragmentation [4] - Helen of Troy Limited (HELE) is simplifying its marketing execution and prioritizing high-return investments, reporting success in influencer-backed launches despite facing tariff disruptions and pricing pressures [5] Financial Performance - EWCZ shares have increased by 64.6% over the past three months, outperforming the industry growth of 50.1% [6] - The company has a forward price-to-earnings ratio of 8.61X, significantly lower than the industry average of 27.7X, indicating potential undervaluation [8] - The Zacks Consensus Estimate predicts EWCZ's earnings growth of 35.6% for fiscal 2025 and 8.2% for fiscal 2026 [9]

Company Overview - European Wax Center is the largest and fastest-growing provider of out-of-home waxing services[8] - The company performed over 23 million waxing services via 15+ million guest visits in FY 2023[8] - As of January 6, 2024, the company has 1,044 centers[11, 14] - The company is approximately 6x larger than the next largest waxing-focused competitor by center count and ~11x larger by system-wide sales[14] Financial Performance - FY 2023 system-wide sales were $955 million[12] - FY 2023 revenue was $221 million[11] - FY 2023 Adjusted EBITDA margin was 344%[11] - FY 2023 Free Cash Flow was $55 million[12] Growth and Future Outlook - The company anticipates opening 27-32 net new centers in FY 2024[52] - The company expects $930M – $950M system-wide sales and $216M – $221M EWC Revenue in FY2024[52] - The company has a strong multi-year development pipeline with 370+ locations[31, 34]

Core Insights - European Wax Center, Inc. (EWCZ) reported a revenue of $51.43 million for the quarter ended March 2025, reflecting a decrease of 0.9% year-over-year, while EPS increased to $0.22 from $0.13 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $49.4 million by 4.11%, and the EPS surpassed the consensus estimate of $0.05 by 340% [1] Financial Performance Metrics - Same-store sales increased by 0.7%, outperforming the average estimate of -0.6% from five analysts [4] - System-wide sales reached $225.90 million, exceeding the average estimate of $219.72 million from four analysts [4] - The ending center count was 1,062, slightly above the average estimate of 1,061 based on three analysts [4] - Revenue from marketing fees was $7.20 million, surpassing the average estimate of $6.78 million, representing a year-over-year increase of 1.5% [4] - Revenue from royalty fees was $12.43 million, slightly above the average estimate of $12.26 million, with a year-over-year change of -0.1% [4] - Revenue from product sales was $28.87 million, exceeding the average estimate of $27.69 million, reflecting a year-over-year decrease of 2.1% [4] - Other revenue amounted to $2.93 million, surpassing the average estimate of $2.78 million, with a year-over-year increase of 2.9% [4] Stock Performance - Shares of European Wax Center have returned +20% over the past month, compared to the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

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]

Financial Data and Key Metrics Changes - In Q4 2024, 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, but adjusted EBITDA margin increased 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 [18][49] Market Data and Key Metrics Changes - System-wide sales for fiscal 2025 are expected to be between $940 million and $960 million, indicating flat year-over-year growth [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, enhance service-based infrastructure, and implement a sophisticated development approach for profitable expansion [21][28] - The focus is on improving franchisee support and operational excellence to drive sustainable growth [27][29] - The company is committed to transparent communication and regular updates on progress [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by a declining transaction volume and profitability among franchisees due to a tougher macro environment [17] - The company believes it can adapt to these challenges and has identified opportunities to reignite growth [18][20] - Management expects 2025 to be a transitional year, with a focus on solidifying the foundation for sustainable growth [49][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 thoughtful execution of 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 still have strong unit economics with average unit volumes over $1 million and cash-on-cash returns around 40% [80] - Adjustments to SG&A related to franchise taxes were largely offset by state taxes, resulting in a net impact of around $60,000 [85] Question: Characteristics of successful franchisees and potential for European Wax to buy stores - Successful franchisees are committed to service and detail-oriented, with a strong partnership needed for growth [92][96] - The company is open to acquiring stores in the future but is currently focused on supporting franchisees [99][100] Question: Pipeline of unopened units and consumer behavior - The pipeline remains intact with 10 to 12 new unit openings planned, and management does not see a significant shift in consumer behavior or competitive landscape [114][112] - The company is taking a top-down approach to real estate site selection to ensure successful growth [120]