Why European Wax Center Shares Are Jumping Today

Zinger Key Points
  • European Wax Center expects remaining FY23 financial results within or above previous outlook.
  • European Wax Center lifts FY23 same-store sales growth guidance to 2.5% - 2.8%.

European Wax Center, Inc EWCZ has updated its FY23 total revenue outlook to $218 million - $219 million from $217 million - $219 million, against an estimate of $218.49 million.

EWCZ revised the FY23 system-wide sales guidance to $952 million - $955 million from $945 million - $955 million and raised the same-store sales growth outlook to 2.5% - 2.8% from 1.5% - 2.5%.

The franchisor and operator of out-of-home waxing services reaffirmed its FY23 adjusted net income outlook of $20.5 million-$21.5 million and adjusted EBITDA of $74.5 million-$76 million.

"In 2023, we delivered another year of strong unit growth with 100 net new center openings, 18 of which opened in the fourth quarter," said CEO David Willis.

"Our core guests, which include both Wax Pass and routine guests, continue to choose European Wax Center for their personal care needs, representing a recurring revenue stream for our franchisees, and in turn, our business."

The company also repurchased approximately 1.7 million shares for $23.5 million during the fourth quarter of 2023.

European Wax will release its audited financial results for the fiscal year ended January 6, 2024, in early March 2024.

Price Action: EWCZ shares traded higher by 20% at $15.61 on the last check Monday.

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