Overview

* European Wax Center ( EWCZ ) Q2 revenue falls 6.6%, missing analysts' expectations

* Adjusted net income rises 5.6%, beating estimates, per LSEG data

* Adjusted EBITDA increases 4.7%, surpassing analysts' forecasts, per LSEG data

Outlook

* Company sees fiscal 2025 system-wide sales of $940 mln to $950 mln

* European Wax Center ( EWCZ ) expects fiscal 2025 revenue of $205 mln to $209 mln

* Company anticipates 28 to 50 net center closings in fiscal 2025

* European Wax Center ( EWCZ ) projects fiscal 2025 adjusted EBITDA of $69 mln to $71 mln

Result Drivers

* SYSTEM-WIDE SALES DECLINE - Drop due to decrease in same day services and retail sales, partially offset by increased wax pass sales

* SG&A EXPENSES - Increase due to higher payroll and benefits, and absence of prior year's legal judgment gain

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $55.90 $56.90

Revenue mln mln (7

Analysts

)

Q2 EPS $0.09

Q2 Beat $11.80 $8.07

Adjusted mln mln (7

Net Analysts

Income )

Q2 Net $5.40

Income mln

Q2 Beat $21.60 $18.70

Adjusted mln mln (7

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the personal services peer group is "buy"

* Wall Street's median 12-month price target for European Wax Center Inc ( EWCZ ) is $6.00, about 26.5% above its August 12 closing price of $4.41

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)