European Wax Center Sales Decline
European Wax Center (NASDAQ:EWCZ), a leading national provider of waxing services, reported its results for the second quarter of fiscal 2025 on August 13, 2025. The most notable news in the release was a year-over-year revenue decline, as GAAP total revenue decreased 6.6% to $55.9 million from $59.9 million in Q2 FY2024, with the $55.9 million GAAP revenue result missing analyst estimates by $0.99 million. Non-GAAP earnings per share matched the $0.16 consensus. The company saw improved profitability metrics such as Adjusted EBITDA (non-GAAP), but with little growth in core sales measures (system-wide sales decreased 1.0% and same-store sales increased 0.3%) and a shrinking overall network (franchisees opened 2 and closed 5 centers, ending the quarter with 1,059 centers, flat year over year; 7 openings and 15 closures in the first half of FY2025), management trimmed its full-year total revenue guidance for FY2025 to $205 million to $209 million, down from its previous guidance of $210 million to $214 million and now expects 28 to 50 net center closures. The quarter reflected stabilization in underlying operations, but subdued performance on sales growth and network health.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
European Wax Center operates a network of over 1,000 franchised locations across the United States, almost all run by franchise partners rather than the company itself. Its main business is providing waxing services in a clean, consistent, and high-quality setting. The brand is built around proprietary wax formulas -- notably its Comfort Wax -- as well as trained estheticians, consistent hygiene practices, and a pre-paid customer loyalty program called the Wax Pass.
Source Fool.com
