Q2 2025 European Wax Center Inc Earnings Call Transcript
Key Points
- European Wax Center Inc (EWCZ) reported $257.6 million in system-wide sales and $21.6 million in adjusted EBITDA for Q2 2025, indicating strong financial performance.
- The company saw a 1.7% increase in same-store sales in June and a 1.5% increase in the first five weeks of Q3, showing positive momentum.
- European Wax Center Inc (EWCZ) has improved its cost per acquisition by 40% since the beginning of the year, enhancing marketing efficiency.
- The company has increased its guest contactability rate from 38% to 57%, which is expected to drive higher visit frequency.
- European Wax Center Inc (EWCZ) has successfully launched a new grand opening playbook, leading to better-than-expected performance of new centers opened in 2025.
- System-wide sales decreased by 1% year-over-year, driven by a decrease in same-day services and retail sales.
- The company experienced three net center closures in Q2 2025, with more closures expected in Q3 and Q4.
- New guest acquisition has not accelerated at the expected pace, impacting overall growth.
- Challenges persist in certain regions, particularly on the West Coast, affecting overall performance.
- European Wax Center Inc (EWCZ) has narrowed its full-year revenue outlook, reflecting a more conservative view on timing and growth.
Good morning ladies and gentlemen. Thank you for standing by. Welcome to European Wax Center second-quarter 2025 earnings results call. (Operator Instructions)
On the call today is Chris Morris, Chairman and Chief Executive Officer, and Tom Kim, Chief Financial Officer. I would like now to turn the conference over to Tom Kim, Chief Financial Officer. Sir, you may begin.
Good morning, everyone.
Thank you and welcome to European Wax Center's second-quarter fiscal-year 2025 earnings call. On today's call, Chris Morris will provide an update on the company's performance and discuss additional details regarding progress made on our priorities.
Then I will discuss our second quarter results and fiscal 2025 outlook. Following the prepared remarks, we'll be available to take questions. Before we start, I would like to remind you of our legal disclaimer. We will make certain statements today which are forward-looking within the meaning of the federal securities laws, including
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