European Wax Center Earnings Call Transcripts
Fiscal Year 2026
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Stockholders approved the proposed merger agreement with Glow Midco, LLC, with a strong quorum and majority support. The adjournment proposal was not needed, and final results will be reported to the SEC.
Fiscal Year 2025
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Q3 saw stable core guest engagement, a 0.2% same-store sales increase, and 9.6% Adjusted EBITDA growth, despite a 0.8% system-wide sales decline due to closures. Full-year guidance is reaffirmed, with strategic marketing and operational initiatives expected to drive growth in 2026.
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Q2 2025 saw stable system-wide sales of $257.6M, 0.3% same-store sales growth, and a 4.7% rise in adjusted EBITDA. Strategic initiatives improved guest engagement and cost efficiency, with 2025 guidance narrowed but profitability outlook unchanged.
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Q1 saw 2.1% system-wide sales growth and 7.2% higher adjusted EBITDA, with stable core guest demand and early success from new marketing initiatives. Full-year guidance is reiterated, with a focus on improving profitability, managing tariffs, and supporting franchisees through a reset year.
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A new executive team is leading a strategic reset in 2025, focusing on building marketing and analytics capabilities, supporting franchisees, and improving operational execution. The core customer base remains resilient, while growth initiatives and product innovation are set to resume in 2026.
Fiscal Year 2024
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Q4 and FY24 results were stable, with modest sales growth but revenue declines due to softer retail product sales. 2025 is a reset year, with significant closures expected and a focus on marketing, infrastructure, and franchisee support to return to growth by late 2026.
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Leadership is refocusing on core business fundamentals, franchisee profitability, and operational rigor amid a tough macro environment. Growth is being managed thoughtfully, with selective innovation and a strong emphasis on brand consistency and guest experience. Gross margin improvements and disciplined capital allocation support long-term confidence.
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Q3 results met expectations with flat sales and improved gross margin, but macro headwinds led to higher closures and cautious 2025 outlook. Strategic focus is on guest acquisition, ticket growth, and operational efficiency, with strong liquidity and continued share repurchases.
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Leadership is refocusing on growth and operational fundamentals, with strong franchisee alignment and a resilient core guest base. Operation Elevate and new service rollouts are underway, while financial guidance has been revised to reflect macro pressures.
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System-wide sales and revenue grew modestly in Q2, but macroeconomic headwinds led to reduced guidance for 2024. Focus remains on driving new guest acquisition, reactivating lapsed guests, and expanding the laser hair removal pilot, while maintaining strong franchisee economics and a robust development pipeline.
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The session highlighted strong franchise-driven growth, new marketing and operational initiatives, and a focus on customer retention. Early results from a laser hair removal pilot and a new center playbook are promising, while financials remain robust with a focus on shareholder returns.