European Wax Center, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with total revenue decreasing by 6.6% to $55.9 million compared to $59.9 million in the same period last year. The decrease was primarily attributed to a reduction in transactions at existing centers, which negatively impacted product sales, royalty fees, and other revenue streams. Product sales alone fell by 10% to $30.5 million, while royalty fees decreased by 1.3% to $14.3 million. The company also noted a slight increase in marketing fees, which rose to $8.1 million, reflecting contributions from new center openings.
In terms of profitability, net income for the quarter was $5.4 million, down 9% from $5.9 million in the prior year. The net income attributable to European Wax Center, Inc. was $3.8 million, a decrease of 11.7% from the previous year. Operating expenses also saw a reduction, totaling $41.8 million, down 8.2% from $45.6 million, primarily due to lower costs associated with revenue. However, selling, general, and administrative expenses increased by 12.4% to $14.5 million, driven by higher payroll and benefits costs.
Operationally, the company maintained a stable number of centers, ending the quarter with 1,059 locations, unchanged from the previous year. However, the company experienced a net loss of three centers during the quarter, with 29 closures offset by 29 new openings. System-wide sales for the quarter were reported at $257.6 million, a slight decline of 1% from $260.2 million in the prior year, primarily due to decreased same-day services and retail sales.
Looking ahead, European Wax Center is focusing on stabilizing and realigning its business to improve profitability at existing locations. The company has recently expanded its management team, hiring a Chief Operating Officer and a Chief Development Officer to enhance operational efficiency and drive sales growth. Despite the current challenges, the company remains optimistic about its long-term growth strategy, which includes opening new franchised centers and increasing sales in existing locations. However, the outlook remains cautious due to uncertainties in the consumer environment and the potential for further center closures in the near term.
About European Wax Center, Inc.
European Wax Center is a franchisor and operator specializing in out-of-home waxing services across the United States. The company offers high-quality, hygienic body and facial waxing performed by licensed specialists, supported by proprietary products and technology-driven guest experiences. Its asset-light franchise model emphasizes scalable growth, strong unit economics, and recurring revenue from service and product sales, serving a broad female customer base in a fragmented, multi-billion-dollar market.
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