EXHIBIT 99.1
European Wax Center, Inc. Reports Fourth Quarter and Fiscal Year 2023 Results
Issues fiscal 2024 outlook
Fiscal Year 2023 versus 2022
•
Net new centers increased 10.6% to 1,044 total centers in 45 states
•
System-wide sales of $955.0 million increased 6.3%
•
Total revenue of $221.0 million increased 6.6%
•
Same-store sales increased 2.9%
•
GAAP net income of $12.3 million and Adjusted net income of $22.5 million
•
Adjusted EBITDA of $76.0 million
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 strong fourth quarter and equally strong full year 2023 performance. We opened 100 net new centers in 2023, all of which were developed by existing operators, demonstrating continued demand from our franchisees. Further, our core guests, Wax Pass and routine guests, remained firmly committed to their personal care routines, demonstrated by their recurring, predictable revenue stream comprising more than 75% of our $955 million in full year system-wide sales.”
Mr. Willis continued, “Looking ahead, we are entering 2024 with confidence in our model, our loyal core guest base, well-capitalized franchisees, and a deep development pipeline. We expect to deliver another year of top and bottom-line growth, driven by new center openings and in-center sales growth. 2024 is the 20th anniversary of the European Wax Center brand, and we’re excited to extend our position as the undisputed leader in out-of-home hair removal and we expect that we will continue to take share in this highly fragmented category.”
Results for the Fourth Quarter of Fiscal 2023 versus Fiscal 2022
•
Franchisees opened 18 net new centers, and we ended the year with 1,044 centers, representing a 10.6% increase versus 944 centers in prior year period.
•
System-wide sales of $241.7 million increased 7.2% from $225.4 million in the prior year period, primarily driven by net new centers opened over the past twelve months and increased spend by guests at existing centers.
•
Total revenue of $56.3 million increased 5.2% from $53.5 million in the prior year period.
•
Same-store sales increased 1.3%.
•
Selling, general and administrative expenses (“SG&A”) of $13.7 million decreased 6.0% from $14.6 million in the prior year period. SG&A as a percent of total revenue decreased 290 basis points to 24.4% from 27.3%, primarily due to decreases in technology and insurance costs which were partially offset by increases in payroll and benefits and expenses related to the pilot of laser hair removal.
•
Interest expense of $6.6 million decreased from $7.2 million in the prior year period, primarily due to an increase in interest income from the Company’s short-term investments.
•
Income tax expense was $2.2 million compared to an income tax benefit of $53.3 million in the fourth quarter of fiscal 2022. The income tax benefit in fiscal 2022 was primarily attributable to the release of a valuation allowance on deferred tax assets.
The following information was filed by European Wax Center, Inc. (EWCZ) on Wednesday, March 6, 2024 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
