Q1 2025 European Wax Center Inc Earnings Call Transcript
Key Points
- European Wax Center Inc (EWCZ) reported solid first quarter results with USD225.9 million in system-wide sales and USD18.8 million in adjusted EBITDA.
- The company experienced a 70 basis points increase in same-store sales growth, indicating positive momentum.
- New guest trends have shown improvement each month on a two-year basis, suggesting effective marketing strategies.
- The company is modernizing its marketing engine to drive sales and improve guest engagement, leveraging data to lower cost per acquisition.
- European Wax Center Inc (EWCZ) is focusing on operational excellence and franchisee support to enhance profitability and performance across centers.
- The consumer backdrop and supply chain environment remain uncertain, posing potential risks to future performance.
- The company experienced 5 net center closures in the first quarter, highlighting challenges in maintaining unit growth.
- Total revenue decreased by approximately 90 basis points due to lower retail and wholesale product revenue.
- Transaction growth remains pressured, indicating challenges in driving consistent customer traffic.
- Increased tariffs on product costs could impact profitability, although the company is working to mitigate these effects.
Good morning, ladies and gentlemen and thank you for standing by. Welcome to European Wax Center's first quarter fiscal 2025 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. In order to facilitate as many participants as possible, we ask that you please limit yourself to one question and one follow up during the Q&A session. If you have additional questions, you may rejoin the queue. On the call today are Chris Morris, Chairman and Chief Executive Officer, and Tom Kim, Chief Financial Officer. I would now like to turn the conference over to Bethany Johns, director of investor relations. Then we may begin.
Good morning, everyone. Thank you and welcome to European Wax Center's first quarter fiscal year 2025 earnings call. On today's call, Chris Morris will provide an update on his first full quarter with the company and discuss additional details regarding progress made on our
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