Why European Wax Center Stock Just Crashed 26%
The U.S. macroeconomics story of consumers cutting back on discretionary purchases continues. Shares of European Wax Center (NASDAQ: EWCZ) got destroyed this afternoon -- down 26.6% through 12:30 p.m. ET -- after the company apparently beat on earnings but missed on sales.
Analysts forecast the body-hair removal franchisor would earn $0.08 per share on $61.3 million in sales in the second quarter, or about $3.9 million. Actual earnings were $6 million, or $0.12 per share (although the company didn't provide a per-share number). Sales, however, fell short at $59.9 million.
At first glance, that doesn't seem so bad: earning more than expected despite selling less than expected. Earnings grew 6% year over year, despite sales growing only 1%.
Source Fool.com
