Q1 2024 European Wax Center Inc Earnings Call Transcript
Key Points
- European Wax Center Inc (EWCZ) reported a 1.3% growth in system-wide sales and a 4% increase in total revenue.
- The company successfully opened seven new centers, contributing to a 7.5% growth in center count, demonstrating strong franchisee relationships and commitment.
- European Wax Center Inc (EWCZ) maintained strong profit margins and increased its cash position significantly, highlighting an effective, asset-light franchise model.
- The company was recognized as a Great Place To Work for the second consecutive year, underscoring its strong company culture and associate satisfaction.
- European Wax Center Inc (EWCZ) launched several strategic initiatives aimed at driving in-center sales and enhancing guest acquisition, showing early positive results.
- Same-store sales were down by 1.2%, impacted by weather conditions and Easter-related center closures.
- The company faces challenges in attracting first-time guests, a critical area for growth, especially in a discerning macroeconomic environment.
- While European Wax Center Inc (EWCZ) is making progress with its media and marketing initiatives, it is still too early to see the full benefits, indicating potential risks if these efforts do not yield expected results.
- The company's laser hair removal pilot, although promising, requires further testing and validation, especially in more regulated environments like Florida.
- European Wax Center Inc (EWCZ) is experiencing increased costs related to the expansion of its laser hair removal services, which could impact short-term profitability.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to European Wax Centers' first-quarter fiscal-2024 earnings call. (Operator Instructions) On the call today are David Willis, Chief Executive Officer; Stacie Shirley, Chief Financial Officer; and Andrea Wasserman, Chief Commercial Officer.
I would like now to turn the conference over to Bethany Johns, Director of Investor Relations. Ma'am, you may begin.
Thank you, and welcome to European Wax Center's first quarter of fiscal-2024 earnings call. For today's call, David will begin with a brief review of our first-quarter performance and discuss our priorities for the balance of 2024. Then, Stacie will provide additional details regarding our financial performance and our fiscal-2024 outlook. Following the prepared remarks, the team will 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
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