European Wax Center reports Q4 revenue $56.3M, consensus $54.08M

Reports Q4 adjusted net income $6.0M decreased from $48.7M in the prior year period, primarily due to the income tax benefit recognized in FY22 from the release of a valuation allowance on deferred tax assets. Reports Q4 Same-store sales increased 1.3%. David Willis, CEO of European Wax Center, stated: “European Wax Center delivered a strong Q4 and equally strong FY23 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.” 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.”