EWCZ Latest Report

Financial Performance

On January 4, 2025, European Wax Center (stock symbol: EWCZ) reported a total operating revenue of RMB128.25 million. Through analyzing data from 2024 and previous years, we can further explore its financial performance and potential influencing factors.

Key Financial Data

1. European Wax Center's revenue as of July 6, 2024 was $112.5 million, with a net profit of $9.729 million, and a basic earnings per share of $0.15.

2. The revenue in the fourth quarter of 2024 was $49.4 million, a year-on-year decrease of 4.6%.

3. The overall market growth rate of the beauty industry in 2024 is expected to be between 4.7% and 5%, despite the decrease in closure rates and the net increase of more than 120,000 stores, maintaining a growth trend.

4. Although the number of new stores opened in 2024 was not explicitly stated, the report mentioned the company's expansion plans and continued focus on attracting new customers and retaining first-time customers.

5. EWCZ ranked 43rd in the Entrepreneur's Franchise 500® in 2024 and ranked first in the hair removal category, demonstrating its brand influence and financial stability.

Peer Comparison

1. Industry-wide analysis: The beauty industry experienced recovery in the past year, with increased consumer demand for personal care, leading to a general increase in total operating revenue. Although EWCZ's revenue decreased in the fourth quarter of 2024, the overall industry's growth shows the continued demand for beauty services in the market.

2. Peer evaluation analysis: If EWCZ's revenue growth is lower than the industry average, it may indicate a decline in market share or insufficient competitiveness; conversely, if it exceeds the industry level, it demonstrates its strong performance in the market. Although its overall revenue has fluctuated, it still has relative advantages in brand influence and marketing.

Conclusion

Based on this analysis, although EWCZ's revenue in 2024 performed poorly in some quarters, the overall industry's recovery and its strong brand influence may support future growth. The company's efforts in expansion and marketing will be key factors.

Opportunities

1. The plan to continuously expand new stores may bring in new customer inflows and revenue growth.

2. Leveraging brand influence and market recognition to attract more customers may increase market share.

3. Strengthening promotional efforts in marketing activities can help improve customer retention and attract new customers.

Risks

1. Quarterly revenue fluctuations may affect investor confidence, leading to stock price volatility.

2. If industry competition intensifies, it may lead to a decline in EWCZ's market share.

3. If it fails to effectively attract and retain customers, it may affect the company's long-term financial performance.