European Wax Center's Q2 2025: Navigating Contradictions in Franchisee Support, Growth Strategies, and Marketing Efficiency

Franchisee support and closures, store closure and net unit growth strategy, marketing efficiency and guest engagement, unit ramp performance and new guest acquisition, and marketing efficiency and guest engagement are the key contradictions discussed in European Wax Center's latest 2025Q2 earnings call.



Sales Performance and Strategic Initiatives:
- European Wax Center reported system-wide sales of $257.6 million in Q2, with a 30 basis points increase in same-store sales.
- The improvement was driven by early signs of success from strategic initiatives focused on enhancing marketing efforts and operational efficiency.

Marketing and Guest Engagement:
- The company improved cost per acquisition by 40% since the beginning of the year through data-driven marketing and guest targeting.
- This improvement came from refining media strategies, enhancing guest engagement, and leveraging tools like SMS and email platforms to increase visit frequency.

Operational Improvements and Franchisee Support:
- European Wax Center delivered over 2,000 touch points, including 400 field visits and nearly 200 labor analytics reports, to franchisees in Q2.
- This proactive support resulted in a 170 basis points improvement in EBITDA margins for highly engaged centers.

Franchise and Development Strategy:
- The company plans to return to net unit growth by the end of 2026, with a focus on thoughtful, profitable expansion.
- New leaders like Chief Development Officer Kurt Smith are enhancing the development approach, with a refined market planning platform to align with performance expectations.