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European Wax Center, Inc. (EWCZ) Earnings Report Analysis
Mar 11, 2025 9:00 PM - Andrew Wynn(Last modified: Mar 12, 2025 3:31 PM)
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- EWCZ's earnings per share of $0.03 missed the estimated $0.05, yet its GAAP net income rose by 21.9% to $14.7 million.
- The company reported quarterly revenue of $49.74 million, below expectations, but system-wide sales indicate a stable year-over-year performance.
- Financial health indicators show a moderate market valuation with a P/E ratio of 18.61 and a strong liquidity position with a current ratio of 3.17.
European Wax Center, Inc. (NASDAQ:EWCZ) is a prominent player in the beauty and personal care industry, specializing in hair removal services. The company operates a vast network of centers across the United States, offering a range of waxing services. EWCZ competes with other beauty service providers, focusing on delivering quality and convenience to its customers.
On March 11, 2025, EWCZ reported earnings per share of $0.03, which fell short of the estimated $0.05. This shortfall was discussed during the Fourth Quarter Fiscal 2024 Earnings Conference Call, where key company figures like CEO Chris Morris and CFO Stacie Shirley addressed the results. Despite the earnings miss, the company's GAAP net income rose by 21.9% to $14.7 million, indicating strong profitability.
The company's revenue for the quarter was $49.74 million, below the anticipated $52.29 million. However, EWCZ's system-wide sales reached $951 million, reflecting a slight decrease of 0.4%, but an increase of 1.2% on a 52-week basis. This suggests that while quarterly revenue was below expectations, the company maintained a stable performance over the year.
EWCZ's financial metrics provide insight into its market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 18.61, the market values its earnings moderately. The price-to-sales ratio of 1.13 indicates investor willingness to pay per dollar of sales. Despite a high debt-to-equity ratio of 5.54, the company maintains a strong liquidity position with a current ratio of 3.17.
CEO Chris Morris expressed satisfaction with the fiscal 2024 results, attributing success to customer loyalty and strong performance during promotional periods. The company's adjusted EBITDA saw a slight decline of 0.7% to $75.5 million, but the adjusted net income increased by 15.2% to $25.6 million, highlighting effective cost management and operational efficiency.
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