Latest news with #waxing
Globe and Mail
2 days ago
- Business
- Globe and Mail
European Wax Center, Inc. Reports Second Quarter Fiscal Year 2025 Results
Second Quarter Fiscal 2025 versus 2024 1,059 total centers in 44 states was flat System-wide sales of $257.6 million decreased 1.0% Total revenue of $55.9 million decreased 6.6% Same-store sales increased 0.3% GAAP net income of $5.4 million decreased 9.0% Adjusted Net Income of $11.8 million increased 5.6% Adjusted EBITDA of $21.6 million increased 4.7% PLANO, Texas, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Today, European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services in the United States, reports financial results for the 13 and 26 weeks ended July 5, 2025. Chris Morris, Chairman and CEO of European Wax Center, Inc., stated: 'In the second quarter, we began to see encouraging early signs that our strategies are taking hold, reinforcing the stability of our core business and the resilience of the European Wax Center brand. This is a transitional year in which we are strengthening the foundation of the business through data-driven decision making, disciplined execution, and a clear focus on our three strategic priorities: driving traffic and sales growth, improving four-wall profitability for franchisees, and pursuing thoughtful, profitable expansion.' Mr. Morris continued, 'We have assembled a leadership team with the operational and development expertise to accelerate these efforts, deepen our franchisee partnerships, and work to consistently deliver exceptional guest experiences. While we recognize we are still early in this journey, recent trends in same-store sales, guest frequency, and marketing efficiency underscores our belief in the fundamentals of our model and long-term growth potential. The progress we've made in recent months, combined with the engagement and alignment across our system, gives us confidence that we are on the right path toward sustainable growth and a stronger brand in the years to come.' Franchisees opened 2 and closed 5 centers. We ended the quarter with 1,059 centers, flat year over year. System-wide sales of $257.6 million decreased 1.0% from $260.2 million in the prior year period, primarily driven by a decrease in same day services and retail sales, partially offset by an increase in cash collected from wax pass sales. Total revenue of $55.9 million decreased 6.6% from $59.9 million in the prior year period. Same-store sales increased 0.3%. Selling, general and administrative expenses ('SG&A') of $14.5 million increased 13.2% from $12.9 million in the prior year period. SG&A as a percent of total revenue increased 430 basis points to 25.9% from 21.6% primarily driven by the decrease in revenue, an increase in payroll and benefits expense and a non-recurring gain from legal judgment proceeds received in the prior year period. Interest expense, net of $6.6 million increased from $6.4 million in the prior year period. Income tax expense increased to $2.1 million from $1.7 million in the prior year period. The effective tax rate increased to 27.6% from 22.5% in the prior year period, primarily due to the impact of nondeductible officer compensation in the current year. Net income of $5.4 million decreased 9.0% from $5.9 million, and Adjusted Net Income of $11.8 million increased 5.6% from $11.1 million in the prior year period. Net income margin decreased 30 basis points to 9.6% from 9.9%. Adjusted EBITDA of $21.6 million increased 4.7% from $20.6 million in the prior year period. Adjusted EBITDA Margin increased 420 basis points to 38.7% from 34.5%. Year-to-Date Results through the Second Quarter of Fiscal 2025 versus Fiscal 2024 Franchisees opened 7 and closed 15 centers in the first half of fiscal 2025. System-wide sales of $483.5 million increased 0.4% from $481.5 million in the prior year-to-date period, primarily driven by an increase in cash collected from wax pass sales, partially offset by a decrease in same day services. Total revenue of $107.3 million decreased 3.9% from $4.4 million in the prior year-to-date period. Same-store sales increased 0.5%. Selling, general and administrative expenses ('SG&A') of $29.8 million increased 13.2% from $26.4 million in the prior year-to-date period. SG&A as a percent of total revenue increased 420 basis points to 27.8% from 23.6% primarily driven by the decrease in revenue, an increase in payroll and benefits expense, executive severance and a non-recurring gain from legal judgment proceeds received in the prior year period. Interest expense, net of $13.2 million increased from $12.7 million in the prior year-to-date period. Income tax expense increased to $3.4 million from $2.9 million in the prior year-to-date period. The effective tax rate increased to 30.2% from 23.4% in the prior year-to-date period, primarily due to the impact of nondeductible officer compensation in the current year. Net income of $8.0 million decreased 16.9% from $9.6 million, and Adjusted Net Income of $21.3 million increased 7.9% from $19.7 million in the prior year-to-date period. Net income margin decreased 120 basis points to 7.4% from 8.6%. Adjusted EBITDA of $40.4 million increased 5.9% from $38.1 million in the prior year-to-date period. Adjusted EBITDA Margin increased 350 basis points to 37.6% from 34.1%. The Company repurchased approximately 0.2 million shares of its Class A Common Stock during the period for $1.1 million, bringing cumulative repurchases under the Company's current $50 million authorization to $41.2 million. Balance Sheet and Cash Flow The Company ended the second quarter with $63.9 million in cash and cash equivalents, $6.4 million in restricted cash, $388.0 million in borrowings outstanding under its senior secured notes and no outstanding borrowings under its revolving credit facility. Net cash provided by operating activities totaled $15.2 million during the quarter. Fiscal 2025 Financial Outlook The Company updates its previous fiscal 2025 financial outlook for the following metrics: Fiscal 2025 Outlook (Current) Fiscal 2025 Outlook (Previous) System-Wide Sales $940 million to $950 million $940 million to $960 million Total Revenue $205 million to $209 million $210 million to $214 million Same-Store Sales 0.0% to 1.0% 0.0% to 2.0% The Company reiterates its previous fiscal 2025 financial outlook for the following metrics: _______________________ (1) Adjusted Net Income outlook assumes an effective tax rate of approximately 23% for fiscal 2025 computed by applying our estimated blended statutory tax rate and incorporating the effect of nondeductible and other rate impacting adjustments. See Disclosure Regarding Non-GAAP Financial Measures for additional information regarding the change in definition for Adjusted Net Income. Fiscal 2025 Net New Center Outlook The Company continues to estimate that franchisees will open 10 to 12 new centers and close 40 to 60 centers, translating to 28 to 50 net center closings in fiscal 2025. The Company expects 15 to 16 net center closings during the third quarter. As of August 12, 2025, 0 centers have opened and 3 have closed in the third quarter. See 'Disclosure Regarding Non-GAAP Financial Measures' and the reconciliation tables that accompany this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release. Webcast and Conference Call Information European Wax Center, Inc. will host a conference call to discuss second quarter fiscal 2025 results today, August 13, 2025, at 8:00 a.m. ET/7:00 a.m. CT. To access the conference call dial-in information, analysts should click here to register online at least 15 minutes before the start of the call. All other participants are asked to access the earnings webcast via A replay of the webcast will be available two hours after the call and archived on the same web page for one year. About European Wax Center, Inc. European Wax Center, Inc. (NASDAQ: EWCZ) is the leading franchisor and operator of out-of-home waxing services in the United States. European Wax Center locations perform more than 23 million services per year, providing guests with an unparalleled, professional personal care experience administered by highly trained wax specialists within the privacy of clean, individual waxing suites. The Company continues to revolutionize the waxing industry with its innovative Comfort Wax® formulated with the highest quality ingredients to make waxing a more efficient and relatively painless experience, along with its collection of proprietary products to help enhance and extend waxing results. By leading with its values – We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome – the Company is proud to be Certified™ by Great Place to Work®. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas. Its network, which includes more than 1,000 centers in 44 states, generated sales of $951 million in fiscal 2024. For more information, including how to receive your first wax free, please visit: Forward-Looking Statements This press release includes 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to European Wax Center, Inc.'s strategy, outlook and growth prospects, its operational and financial outlook for fiscal 2025, expected center openings and closures, its capital allocation strategy, including the share repurchase program and its long-term targets and algorithm, including but not limited to statements under the headings 'Fiscal 2025 Financial Outlook' and 'Fiscal 2025 Net New Center Outlook' and statements by European Wax Center's chief executive officer. Words including 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'likely,' 'intend,' 'may,' 'might,' 'plan,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'will,' or 'would,' or, in each case, the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. These forward-looking statements are based on current expectations and beliefs. These statements are neither promises nor guarantees, and involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different than the results, performance or achievements expressed or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ from the Company's expectations include, but are not limited to, the following risks related to its business: the operational and financial results of franchisees; the ability of its franchisees to enter new markets, select appropriate sites for new centers or open new centers; the effectiveness of the Company's marketing and advertising programs and the active participation of franchisees in enhancing the value of its brand; the failure of its franchisees to participate in and comply with its agreements, business model and policies; the Company's and its franchisees' ability to attract and retain guests; the effect of social media on the Company's reputation; the Company's ability to compete with other industry participants and respond to market trends and changes in consumer preferences; the effect of the Company's planned growth on its management, employees, information systems and internal controls; the Company's ability to retain and effectively respond to a loss of key executives; recruitment efforts; a significant failure, interruptions or security breach of the Company's computer systems or information technology; the Company and its franchisees' ability to attract, train, and retain talented wax specialists and managers; changes in the availability or cost of labor; the Company's ability to retain its franchisees and to maintain the quality of existing franchisees; failure of the Company's franchisees to implement business development plans; the ability of the Company's limited key suppliers, including international suppliers, and distribution centers to deliver their products; changes in supply costs and decreases in the Company's product sourcing revenue, including due to the imposition of tariffs; the Company's ability to adequately protect its intellectual property; the Company's substantial indebtedness; the impact of paying some of the Company's pre-IPO owners for certain tax benefits the Company may claim; changes in general economic and business conditions, including changes due to tariff policy and geopolitical tensions; the Company's and its franchisees' ability to comply with existing and future health, employment and other governmental regulations; complaints or litigation that may adversely affect the Company's business and reputation; the seasonality of the Company's business resulting in fluctuations in its results of operations; the impact of global crises on the Company's operations and financial performance; the impact of inflation and rising interest rates on the Company's business; the Company's access to sources of liquidity and capital to finance its continued operations and growth strategy and the other important factors discussed under the caption 'Risk Factors' under Item 1A in the Company's Annual Report on Form 10-K for the year ended January 4, 2025 filed with the Securities and Exchange Commission (the 'SEC'), as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC's website at and Investors Relations section of the Company's website at These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise. Disclosure Regarding Non-GAAP Financial Measures In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ('GAAP'), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Net Leverage Ratio. Management believes these non-GAAP financial measures are useful because they enable management, investors, and others to assess the operating performance of the Company. We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. We believe that EBITDA, which eliminates the impact of certain expenses that we do not believe reflect our underlying business performance, provides useful information to investors to assess the performance of our business. We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include non-cash equity-based compensation expense, non-cash gains and losses on remeasurement of our tax receivable agreement liability, contractual cash interest on our tax receivable agreement liability, transaction costs, business transformation costs and other one-time expenses and/or gains. Business transformation costs primarily include expenses related to our business transformation and optimization efforts that do not qualify as capital expenditures under applicable accounting principles. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. We define Adjusted Net Income (Loss) as net income (loss) adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include non-cash equity-based compensation expense, amortization of intangible assets, debt extinguishment costs, non-cash gains and losses on remeasurement of our tax receivable agreement liability, contractual cash interest on our tax receivable agreement liability, transaction costs, business transformation costs and other one-time expenses and/or gains. Prior to the first quarter of 2025, the Company did not include amortization of intangible assets in the calculation. However, the Company revised the definition in the first quarter of 2025 as a result of a change in the way management reviews Adjusted Net Income (Loss) in order to remove the impact of the non-cash amortization of intangible assets which management does not view as part of our core operations. Management believes excluding this enables investors to evaluate more clearly and consistently the Company's core operating performance in the same manner that management evaluates its core operating performance. The comparative period was also adjusted based on the revised definition. We define Net Leverage Ratio as the total principal balance of our outstanding debt ('total debt') less cash and cash equivalents, then divided by Adjusted EBITDA for the trailing twelve months. Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Income. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA and Adjusted Net Income (Loss) to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss). Glossary of Terms for Our Key Business Metrics System-Wide Sales. System-wide sales represent sales from same day services, retail sales and cash collected from wax passes for all centers in our network, including both franchisee-owned and corporate-owned centers. While we do not record franchised center sales as revenue, our royalty revenue is calculated based on a percentage of franchised center sales, which are 6.0% of sales, net of retail product sales, as defined in the franchise agreement. This measure allows us to better assess changes in our royalty revenue, our overall center performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by net new center openings as well as increases in same-store sales. Same-Store Sales. Same-store sales reflect the change in sales over a comparable 52-week period year over year from services performed and retail sales for the same-store base. We define the same-store base to include those centers open for at least 52 full weeks. If a center is closed for greater than six consecutive days, the center is deemed a closed center and is excluded from the calculation of same-store sales until it has been reopened for a continuous 52 full weeks. This measure highlights the performance of existing centers, while excluding the impact of new center openings and closures. We review same-store sales for corporate-owned centers as well as franchisee-owned centers. Same-store sales growth is driven by increases in the number of transactions and average transaction size. July 5, 2025 January 4, 2025 ASSETS Current assets: Cash and cash equivalents $ 63,891 $ 49,725 Restricted cash 6,439 6,469 Accounts receivable, net 8,662 7,283 Inventory, net 19,068 19,070 Prepaid expenses and other current assets 5,351 5,292 Total current assets 103,411 87,839 Property and equipment, net 8,293 2,313 Operating lease right-of-use assets 3,193 3,313 Intangible assets, net 422,493 432,160 Goodwill 39,112 39,112 Deferred income taxes 138,096 140,315 Other non-current assets 1,778 2,015 Total assets $ 716,376 $ 707,067 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 18,455 $ 17,354 Long-term debt, current portion 4,000 4,000 Tax receivable agreement liability, current portion 2,809 9,353 Deferred revenue, current portion 4,128 4,149 Operating lease liabilities, current portion 1,160 1,255 Total current liabilities 30,552 36,111 Long-term debt, net 374,019 373,246 Tax receivable agreement liability, net of current portion 195,525 194,917 Deferred revenue, net of current portion 5,281 5,836 Operating lease liabilities, net of current portion 2,216 2,318 Deferred tax liability 738 738 Other long-term liabilities 2,183 2,309 Total liabilities 610,514 615,475 Commitments and contingencies Stockholders' equity: Preferred stock ($0.00001 par value, 100,000,000 shares authorized, none issued and outstanding as of July 5, 2025 and January 4, 2025, respectively) — — Class A common stock ($0.00001 par value, 600,000,000 shares authorized, 51,991,241 and 51,713,132 shares issued and 43,360,719 and 43,323,183 shares outstanding as of July 5, 2025 and January 4, 2025, respectively) — — Class B common stock ($0.00001 par value, 60,000,000 shares authorized, 11,860,546 and 12,005,172 shares issued and outstanding as of July 5, 2025 and January 4, 2025, respectively) — — Treasury stock, at cost 8,630,522 and 8,389,949 shares of Class A common stock as of July 5, 2025 and January 4, 2025, respectively (81,595) (80,148) Additional paid-in capital 253,045 244,611 Accumulated deficit (94,929) (100,416) Total stockholders' equity attributable to European Wax Center, Inc. 76,521 64,047 Noncontrolling interests 29,341 27,545 EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES (Amounts in thousands) For the Thirteen Weeks Ended For the Twenty-Six Weeks Ended July 5, 2025 July 6, 2024 July 5, 2025 July 6, 2024 REVENUE Product sales $ 30,515 $ 33,923 $ 59,386 $ 63,421 Royalty fees 14,278 14,465 26,706 26,901 Marketing fees 8,108 8,142 15,311 15,238 Other revenue 3,010 3,341 5,935 6,185 Total revenue 55,911 59,871 107,338 111,745 OPERATING EXPENSES Cost of revenue 14,175 16,024 27,451 29,548 Selling, general and administrative 14,507 12,911 29,847 26,377 Advertising 8,157 11,576 15,405 20,264 Depreciation and amortization 5,003 5,079 9,984 10,174 Gain on sale of center — — — (81) Total operating expenses 41,842 45,590 82,687 86,282 Income from operations 14,069 14,281 24,651 25,463 Interest expense, net 6,594 6,367 13,227 12,703 Other expense 22 269 20 249 Income before income taxes 7,453 7,645 11,404 12,511 Income tax expense 2,060 1,721 3,441 2,933 NET INCOME $ 5,393 $ 5,924 $ 7,963 $ 9,578 Less: net income attributable to noncontrolling interests 1,641 1,675 2,476 2,564 NET INCOME ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC. $ 3,752 $ 4,249 $ 5,487 $ 7,014 Net income per share Basic - Class A Common Stock $ 0.09 $ 0.09 $ 0.13 $ 0.15 Diluted - Class A Common Stock $ 0.09 $ 0.09 $ 0.13 $ 0.15 Weighted average shares outstanding Basic - Class A Common Stock 43,344,441 48,176,149 43,322,260 48,365,642 Diluted - Class A Common Stock 43,344,651 48,216,643 43,382,522 48,425,028 EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) For the Twenty-Six Weeks Ended July 5, 2025 July 6, 2024 Cash flows from operating activities: Net income $ 7,963 $ 9,578 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,984 10,174 Amortization of deferred financing costs 2,947 2,773 Provision for inventory obsolescence — (70) Provision for bad debts 75 113 Deferred income taxes 3,200 2,751 Remeasurement of tax receivable agreement liability 20 249 Gain on sale of center — (81) Loss on disposal of property and equipment — 3 Equity compensation 4,943 3,323 Changes in assets and liabilities: Accounts receivable (1,455) (964) Inventory, net 2 (1,246) Prepaid expenses and other assets 570 948 Accounts payable and accrued liabilities 887 (835) Deferred revenue (576) (1,044) Other long-term liabilities (656) (541) Net cash provided by operating activities 27,904 25,131 Cash flows from investing activities: Purchases of property and equipment (1,363) (215) Cash received for sale of center — 135 Net cash used in investing activities (1,363) (80) Cash flows from financing activities: Principal payments on long-term debt (2,000) (2,000) Distributions to EWC Ventures LLC members (2,243) (2,515) Repurchase of Class A common stock (1,447) (10,001) Taxes on vested restricted stock units paid by withholding shares (161) (393) Dividend equivalents to holders of EWC Ventures units (10) (725) Payments pursuant to tax receivable agreement (6,544) (6,496) Net cash used in financing activities (12,405) (22,130) Net increase in cash, cash equivalents and restricted cash 14,136 2,921 Cash, cash equivalents and restricted cash, beginning of period 56,194 59,228 Cash, cash equivalents and restricted cash, end of period $ 70,330 $ 62,149 Supplemental cash flow information: Cash paid for interest $ 10,863 $ 10,976 Cash paid for income taxes $ 440 $ 444 Non-cash investing activities: Property purchases included in accounts payable and accrued liabilities $ 112 $ 21 Property purchases included in additional paid-in capital $ 4,822 $ — Right-of-use assets obtained in exchange for operating lease obligations $ 446 $ 592 Reconciliation of Net Income to Adjusted Net Income: For the Thirteen Weeks Ended For the Twenty-Six Weeks Ended July 5, 2025 July 6, 2024 July 5, 2025 July 6, 2024 (in thousands) Net income $ 5,393 $ 5,924 $ 7,963 $ 9,578 Share-based compensation (1) 2,379 1,941 4,943 3,323 Remeasurement of tax receivable agreement liability (2) 22 269 20 249 Gain on sale of center (3) — — — (81) Gain from legal judgment proceeds (4) — (659) — (739) Executive severance (5) — — 465 — Reorganization costs (6) 55 — 215 — Business transformation costs (7) 107 — 149 — Tax effect of adjustments to net income (8) (75) (209) (234) (327) Adjusted Net Income, as previously defined $ 7,881 $ 7,266 $ 13,521 $ 12,003 Amortization of intangible assets (9) 4,834 4,834 9,667 9,667 Tax effect of adjustments to net income (8) (942) (954) (1,904) (1,938) Adjusted Net Income $ 11,773 $ 11,146 $ 21,284 $ 19,732 (1) Represents non-cash equity-based compensation expense. (2) Represents non-cash adjustments related to the remeasurement of our tax receivable agreement liability. (3) Represents gain on the sale of a corporate-owned center. (4) Represents the collection of cash proceeds from a legal judgment. (5) Represents cash severance paid or payable to our former chief financial officer. (6) Represents costs associated with the Company's return-to-office mandate. (7) Represents costs related to our business transformation and optimization efforts that do not qualify as capital expenditures under applicable accounting principles. (8) Represents the estimated income tax impact of non-GAAP adjustments computed by applying our estimated blended statutory tax rate to our share of the identified items and incorporating the effect of nondeductible and other rate impacting adjustments. (9) Represents the amortization of franchisee relationships and reacquired rights. Reconciliation of Net Income to EBITDA and Adjusted EBITDA: For the Thirteen Weeks Ended For the Twenty-Six Weeks Ended Trailing Twelve Months Ended July 5, 2025 July 6, 2024 July 5, 2025 July 6, 2024 July 5, 2025 (in thousands) Net income $ 5,393 $ 5,924 $ 7,963 $ 9,578 $ 13,066 Interest expense, net 6,594 6,367 13,227 12,703 26,016 Income tax expense 2,060 1,721 3,441 2,933 2,698 Depreciation and amortization 5,003 5,079 9,984 10,174 20,090 EBITDA $ 19,050 $ 19,091 $ 34,615 $ 35,388 $ 61,870 Share-based compensation (1) 2,379 1,941 4,943 3,323 6,770 Remeasurement of tax receivable agreement liability (2) 22 269 20 249 5,169 Gain on sale of center (3) — — — (81) — Gain from legal judgment proceeds (4) — (659) — (739) 15 Executive severance (5) — — 465 — 2,013 Reorganization costs (6) 55 — 215 — 845 Business transformation costs (7) 107 — 149 — 149 Terminated debt offering costs (8) — — — — 941 Adjusted EBITDA $ 21,613 $ 20,642 $ 40,407 $ 38,140 $ 77,772 Total revenue $ 55,911 $ 59,871 $ 107,338 $ 111,745 $ 212,509 Net income margin 9.6 % 9.9 % 7.4 % 8.6 % 6.1 % Adjusted EBITDA Margin 38.7 % 34.5 % 37.6 % 34.1 % 36.6 % (1) Represents non-cash equity-based compensation expense. (2) Represents non-cash adjustments related to the remeasurement of our tax receivable agreement liability. (3) Represents gain on the sale of a corporate-owned center. (4) Represents the collection of cash proceeds from a legal judgment. (5) Represents cash severance paid or payable to our former chief financial officer. (6) Represents costs associated with the Company's return-to-office mandate. (7) Represents costs related to our marketing transformation and optimization efforts that do not qualify as capital expenditures under applicable accounting principles. (8) Represents costs related to a debt offering the Company was previously evaluating and subsequently decided to terminate. Trailing Twelve Months July 5, 2025 (in thousands) Total debt $ 388,000 Less: Cash and cash equivalents (63,891) Net Debt $ 324,109 Adjusted EBITDA 77,772 Net Leverage Ratio 4.2 x Investor Contact Edelman Smithfield for European Wax Center, Inc. EWCIR@ Media Contact Zeno Group Sophia Tortorella 312-752-6851
The Sun
5 days ago
- The Sun
I'm a beauty expert, why you should NEVER wax before holidays – it can leave your skin looking worse & you'll be in pain
A HAIR removal specialist has warned travelers not to get a wax immediately before boarding a flight, as it could lead to painful skin problems that might spoil the start of a holiday. Timca Pruijt, hair removal expert from Laser Hair Removalo, says the conditions inside aircraft cabins can worsen post-wax skin irritation, causing redness, increased sensitivity and potential infection risks. 1 She noted that many people book last-minute beauty treatments just before flying abroad, without considering how the aircraft environment might affect freshly waxed skin. Cabin air is extra dry 'To avoid condensation, cabin humidity is reduced dramatically to anywhere between 10% and 20%, according to the Federal Aviation Administration's latest Aviation Weather Handbook. "This is much lower than what your skin is used to, which is ideally between 30% and 50%, based on guidance from the US Environmental Protection Agency,' Pruijt explains. 'We can easily feel our lips chapping, our nose drying and our eyes getting itchy, but we rarely remember our skin is suffering too.' She explains that newly waxed skin will have its protective hair layer removed, and tiny pores are left open and exposed. 'After waxing, your skin needs time to recover and close those open pores. The ultra-dry cabin air draws moisture from your skin at the worst possible time – right when it needs hydration to heal properly,' she adds. 'People often forget that waxing is not just hair removal; it is quite traumatic for the skin. You are pulling hair from the root and removing a thin layer of skin cells in the process,' she says. Pruijt also points out that the stress of travelling, along with changes in temperature between air-conditioned airports, hot tarmacs and cool cabins, puts additional strain on your skin's ability to recover. Your Skin Needs At Least 48 Hours to Heal According to Pruijt, sitting in a confined space for hours with compromised skin creates ideal conditions for bacteria to multiply, potentially leading to spots, rashes, or even infections. For holidaymakers who still want to be hair-free on arrival, she recommends planning beauty treatments carefully. I'm a bikini waxer - stop being embarrassed about being hairy & no, I don't care if you've got lumps or bumps down there 'Preparation is the only way you can avoid complications from waxing. This means booking your appointments well ahead and applying moisturizers before leaving the house for the airport.' 'Get your waxing done at least 48 hours before your flight. This gives your skin adequate time to recover and those open pores to close,' she advises. She also suggests applying a gentle, fragrance-free moisturizer before the flight to create a protective barrier. Airports can be bacteria breeding ground for freshly waxed skin 'Our hands contact multiple surfaces in airports, planes, taxis, buses, and cafes. We then inevitably touch our skin with those hands, breeding with bacteria. "You can use hand sanitizer generously and often, but bacteria are on surfaces you might sit on or accidentally touch. 'While you cannot exactly cover a waxed upper lip or brow, you could swap shorts for loose trousers and tank tops for airy, long-sleeved shirts to give your fragile skin an extra layer of protection from unsanitary surfaces and your own contaminated hands.' The expert noted that wearing loose, comfortable clothing on the flight is essential if you have recently had a wax, particularly for sensitive areas. 'Tight clothing creates friction and traps heat and moisture, which can lead to irritation or folliculitis, when your hair follicles become inflamed,' she explains. 'Opt for cotton for avoid sweating and maximize your skin's ability to breathe.' Last-minute waxing can cause rashes If you are used to waxing as your preferred hair removal method, you may be reluctant to consider alternatives or combinations thereof. 'Many travelers now opt for a waxing appointment a few days before their flight and pack a small razor for touch-ups if needed during their holiday,' she says. 'If you travel often or want longer-lasting results, treatments like laser hair removal might be worth considering. Unlike waxing, once a course of laser treatments is complete, there is no need to worry about last-minute hair removal before flights. How to prepare for a bikini wax IF you're thinking of booking a bikini wax, here's how you can prepare. Choose the Right Time: Schedule your appointment at least a week after your menstrual cycle when your pain threshold is higher. Exfoliate: Gently exfoliate the bikini area a day or two before your wax to remove dead skin cells and prevent ingrown hairs. Trim Hair: Ensure hair is about 1/4 inch long; if it's longer, trim it down for a smoother waxing process. Avoid Caffeine and Alcohol: Steer clear of caffeine and alcohol on the day of your appointment as they can tighten pores and increase sensitivity. Take a Pain Reliever: Consider taking an over-the-counter pain reliever about 30 minutes before your appointment to help minimise discomfort. Wear Loose Clothing: Opt for loose-fitting clothes on the day of your waxing to avoid irritation post-treatment. Communicate with Your Aesthetician: Don't hesitate to discuss any concerns or questions with your aesthetician before the session begins. Stay Hydrated: Drink plenty of water leading up to your appointment to keep your skin hydrated and more supple. 'Ultimately, if it is too late to plan more permanent hair removal options, your best bet is packing a good old set of fresh razors and, importantly, a new loofah or gentle brush to exfoliate your sensitive, sun-bathed skin before shaving,' Pruijt notes. 'You are better off putting in the extra effort of shaving daily than walking around with a waxed, sore rash you cannot control your entire vacation.' Sun exposure can damage sensitive skin Pruijt also advises taking extra care with sun exposure after both waxing and flying. 'Newly waxed or dehydrated skin makes you more susceptible to sun damage. 'You should avoid applying sunscreen on freshly irritated skin, which is why, if you do need to step out the following 24 hours, cover your skin with clothing rather than sunscreen, depending on the area. Wear trousers, long-sleeved tops, a wide-brimmed hat and trainers. 'Make sure you are extra vigilant with sunscreen once you reach your destination,' she warns.'
Yahoo
01-08-2025
- Health
- Yahoo
European Wax Center Debuts Its First-Ever All Over Deodorant
Formulated for full body use, the aluminum-free cream deodorant neutralizes odor, helps reduce hair thickness, and keeps skin smooth between waxes PLANO, Texas, Aug. 1, 2025 /PRNewswire/ -- European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services, is thrilled to unveil the newest addition to its award-winning EWC TREAT® line: EWC TREAT® All Over Deodorant. The brand's first-ever full-body cream deodorant goes beyond underarms to deliver long-lasting odor protection and skin-smoothing benefits across the entire body, including underarms, bikini area, inner thighs, chest, and feet. The gentle yet powerful formula is aluminum-free, pH balanced, and dermatologist and gynecologist tested, making it safe for even the most sensitive areas. Lightly fragranced with a refreshing blend of bergamot, orange blossom, and sage, the deodorant is infused with skin-loving ingredients designed to keep you fresh, smooth, and confident between waxes, including: Glycolic Acid (AHA): Helps neutralize odor and gently exfoliates Prebiotics: Support the skin's natural balance Narcissus Bulb Extract: A sustainable, daffodil-derived ingredient that helps to visibly reduce hair thickness between waxes "We're thrilled to expand our EWC TREAT® line with the All Over Deodorant—an addition to our product lineup that reflects our commitment to full body confidence," said Katie Mullen, Chief Commercial Officer of European Wax Center. "This clinically tested formula was thoughtfully created for guests who want clean, effective solutions that go beyond underarms. The All Over Deodorant is a natural extension of our expertise in body grooming and aims to help every person feel comfortable, confident, and cared for in their skin." Formulated without aluminum, sulfates, parabens, or phthalates, the EWC TREAT® All Over Deodorant is ideal for those who want a multitasking deodorant that doesn't stain—and doesn't stop at the underarms. The EWC TREAT® All Over Deodorant is available for $18 at and in European Wax Center locations nationwide. About European Wax Center European Wax Center, Inc. (NASDAQ: EWCZ) is the leading franchisor and operator of out-of-home waxing services in the United States. European Wax Center locations perform more than 23 million services per year, providing guests with an unparalleled, professional personal care experience administered by highly trained wax specialists within the privacy of clean, individual waxing suites. The Company continues to revolutionize the waxing industry with its innovative Comfort Wax® formulated with the highest quality ingredients to make waxing a more efficient and relatively painless experience, along with its collection of proprietary products to help enhance and extend waxing results. By leading with its values – We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome – the Company is proud to be Certified™ by Great Place to Work®. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas. Its network, which includes more than 1,000 centers in 44 states, generated sales of $951 million in fiscal 2024. For more information, including how to receive your first wax free, please visit: View original content to download multimedia: SOURCE European Wax Center Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Why European Wax Center (EWCZ) Stock Is Falling Today
What Happened? Shares of beauty and waxing service franchise European Wax Center (NASDAQ:EWCZ) fell 3% in the afternoon session after the company announced a shake-up in its executive leadership team, appointing a new Chief Operating Officer and Chief Development Officer. European Wax Center named Angela Jaskolski as its new COO and Kurt Smith as Chief Development Officer. Jaskolski previously served as Chief Store Officer at hair care brand Madison Reed, while Smith comes from Yum! Brands, where he was a Vice President and General Manager for Pizza Hut. The appointments are part of a broader strategy to enhance operations and drive growth. The stock's decline may reflect investor reaction to the management changes during what the company has called a "transitional year." European Wax Center is facing a challenging consumer environment for discretionary spending and plans to close between 40 and 60 centers in 2025. The leadership overhaul introduces new variables as the company works to stabilize its franchisee network and return to net unit growth. The shares closed the day at $5.02, down 2.6% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy European Wax Center? Access our full analysis report here, it's free. What Is The Market Telling Us European Wax Center's shares are extremely volatile and have had 48 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock gained 14.7% on the news that the company reported impressive first quarter 2025 results, which blew past analysts' sales, earnings, and EBITDA estimates. The beat came from a rebound in customer spending and a small increase in store count, which helped push system-wide sales up even though revenue was mostly flat. On the cost side, the company cut back on advertising, which helped offset increased expenses tied to leadership changes. For the rest of the year, the company stuck to its sales and profits forecasts, aiming for more profit growth even though it's closing more stores than it planned to open. Overall, we think this was a decent quarter with some key metrics above expectations. European Wax Center is down 21.1% since the beginning of the year, and at $5.02 per share, it is trading 49.3% below its 52-week high of $9.90 from July 2024. Investors who bought $1,000 worth of European Wax Center's shares at the IPO in August 2021 would now be looking at an investment worth $234.69. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Vogue
15-07-2025
- Health
- Vogue
Facial Hair Removal: Everything You Need To Know About Doing It At Home
If I were to ever go on University Challenge, I'd choose two specialist subjects: moisturizing and facial hair removal. I was blessed with the sort of hair that grows in all places at all times, and learning how to best remove facial hair quickly and effectively has become my life's work. From bracing myself to pull off wax strips to dabbling in laser hair removal to trying to avoid inhaling the fumes of powerful hair removal creams, rare is the hair removal method I haven't experimented with. All of this experience means I know the best method for you will depend on many factors: Your threshold for pain, whether you'd prefer to do it yourself or see a professional, how quickly your hair grows back, and the sensitivity (or not) of your skin. Here's a breakdown of the best way to remove unwanted hair, directly from the experts. One caveat before we dive in: whether you choose to keep or remove facial hair is a personal preference. This is for people who are looking for advice on removing it in a skin-safe way. What's the best method to remove facial hair? Waxing One of the quickest ways to remove facial hair, waxing can leave skin noticeably smoother and hair-free for anywhere between two and four weeks. At home, wax strips are the most common way to remove facial hair, while in a salon, hot wax is more likely to be used. 'In addition to hair removal, waxing also gently exfoliates the skin by removing dead skin cells,' Monica Ella Botros, managing director at Strip Hair Removal Experts, tells Vogue. 'However, facial skin is significantly more delicate and sensitive than the skin on the rest of the body, so it does require extra care.' One concern about facial waxing is that some people experience bumps and small breakouts afterwards, something Botros says is avoidable with the right after-care routine. 'Breakouts and bumps happen when bacteria enter the freshly 'opened' pores (the removal of the hair follicle leaves an opening in the skin),' she explains. 'For the first 12 to 24 hours, you must avoid using any perfumed products on the treated area, as well as refraining from hot baths, showers, sunbathing, sun beds, swimming and strenuous exercise.' Steam, sweat, and SPF are all things that can trigger post-wax irritation. This also applies to strong topical treatments, like retinol, potent exfoliators and peels. Benefits of waxing Quick Cost-effective Easy to do at home Extended hair-free period Drawbacks of waxing Depending on your pain threshold, it can hurt Possibility of post-wax breakouts Can increase the likelihood of ingrown hairs Can cause irritation in sensitive skin types Threading Threading involves taking a carefully twisted piece of cotton thread and using the tension to hold and pull on unwanted hairs.
