European Wax Center, Inc. reported its financial results for the fiscal year ending January 4, 2025, revealing a total revenue of $216.9 million, a decrease of 1.9% from $221.0 million in the previous fiscal year. The decline in revenue was primarily attributed to one less sales week in fiscal 2024 compared to fiscal 2023, which accounted for approximately $4.2 million in lost revenue. Despite this, the company achieved a consolidated net income of $14.7 million, up 21.9% from $12.0 million in the prior year, driven by a reduction in operating expenses and improved cost management.
The company experienced a net increase in its center count, growing to 1,067 locations across 45 states, compared to 1,044 centers in the previous year. This growth included 23 new center openings, although 20 centers were closed during the same period. The average unit volume (AUV) for the year was reported at $915, down from $996 in the previous year, reflecting the impact of the reduced number of operational weeks. The company also noted that same-store sales increased by 0.2%, indicating a slight improvement in performance at existing locations.
Strategically, European Wax Center has focused on enhancing its brand presence and guest experience, which includes the implementation of a new marketing engine aimed at driving traffic to its centers. The company has also made significant investments in technology to streamline operations and improve customer engagement. Additionally, the appointment of Chris Morris as CEO in January 2025 and the hiring of a new Chief Financial Officer are part of the company's efforts to strengthen its leadership team and support future growth.
Looking ahead, European Wax Center anticipates a challenging environment for new center openings in 2025, with closures expected to offset growth on a net basis. The company plans to prioritize improving the productivity and profitability of existing centers while continuing to explore opportunities for expansion in both new and existing markets. The management remains optimistic about the long-term growth potential of the out-of-home waxing market, which is estimated to exceed $7 billion, and aims to leverage its scale and brand recognition to capture a larger market share.
About European Wax Center, Inc.
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