European Wax Center Reports Mixed Q1 2025 Results

European Wax Center, Inc. Class A ( (EWCZ) ) has released its Q1 earnings. Here is a breakdown of the information European Wax Center, Inc. Class A presented to its investors.

European Wax Center, Inc. is a leading franchisor and operator of out-of-home waxing services in the United States, known for its innovative Comfort Wax® and proprietary products that enhance the waxing experience. The company operates over 1,000 centers across 45 states, providing professional personal care services through highly trained specialists.

In its first quarter of fiscal year 2025, European Wax Center reported a slight decrease in total revenue by 0.9% to $51.4 million, while system-wide sales increased by 2.1% to $225.9 million. The company also saw a 1.0% increase in net new centers, reaching a total of 1,062 centers across the United States.

Key financial highlights include a decrease in GAAP net income by 29.7% to $2.6 million, while adjusted net income rose by 10.3% to $9.5 million. Adjusted EBITDA also showed a positive trend, increasing by 7.2% to $18.8 million. The company emphasized its strategic focus on enhancing its marketing engine and supporting franchisees with improved tools and resources.

Despite the challenges of a dynamic macroeconomic environment, European Wax Center remains committed to its strategic priorities, aiming for net unit growth by the end of 2026. The company continues to manage its supply chain strategically, with a focus on driving sales and improving profitability.

Looking ahead, European Wax Center reiterates its fiscal 2025 outlook, projecting system-wide sales between $940 million and $960 million, and total revenue ranging from $210 million to $214 million. The company plans to open 10 to 12 new centers while closing 40 to 60 centers, reflecting its cautious approach to expansion in the current economic climate.