European Wax Center revenue falls, to be taken private

Overview

• Waxing services provider's fiscal 2025 revenue decreased 4.7% yr/yr

• Adjusted net income for fiscal 2025 beat analyst expectations

• Company to be taken private by General Atlantic in all-cash deal

Outlook

• European Wax Center will not provide fiscal 2026 guidance due to privatization

Result Drivers

• SERVICE MIX SHIFT - System-wide sales decreased due to a shift in service mix

• SG&A EXPENSES - Increase in SG&A expenses driven by strategic investments and one-time support to franchisees

• CENTER CLOSURES - Franchisee center closures contributed to decline in system-wide sales

Company press release: ID:nGNX52cT8V

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy."

• Wall Street's median 12-month price target for European Wax Center Inc is $5.80, about 1% above its March 3 closing price of $5.74

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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