European Wax Center Reports 10.7% Increase in Revenue for Q2 2023
August 23, 2023
☀️Earnings Overview
For the second quarter ending June 30 2023, EUROPEAN WAX CENTER ($NASDAQ:EWCZ) reported a 10.7% year-over-year increase in total revenue from the same period in FY2022 to USD 59.1 million. Net income also rose significantly, increasing to 4.0 million from 1.3 million in the previous year’s quarter.
Analysis
Analyzing EUROPEAN WAX CENTER’s fundamentals, GoodWhale has conducted a comprehensive analysis of the company’s financial performance. Based on Star Chart, EUROPEAN WAX CENTER appears to be strong in growth, medium in profitability and weak in asset, dividend. Upon further investigation, we determined that EUROPEAN WAX CENTER is classified as a ‘cheetah’ type of company. This means that although the company has achieved high revenue or earnings growth, it is considered less stable due to lower profitability. This type of company may be of interest to investors who are looking for high returns in the short-term, but are willing to accept the associated risks. In terms of overall health, EUROPEAN WAX CENTER has an intermediate score of 6/10 with regards to its cashflows and debt, indicating that it is likely to sustain future operations in times of crisis. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EWCZ. More…
| Total Revenues | Net Income | Net Margin |
| 217.55 | 7.93 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EWCZ. More…
| Operations | Investing | Financing |
| 47.97 | -0.79 | -27.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EWCZ. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 755.18 | 618.6 | 1.98 |
Key Ratios Snapshot
Some of the financial key ratios for EWCZ are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.4% | 51.1% | -5.2% |
| FCF Margin | ROE | ROA |
| 21.7% | -7.3% | -0.9% |
Peers
In the beauty industry, there is stiff competition between European Wax Center Inc and its competitors. Each company is vying for market share and customers. In order to stay ahead of the competition, European Wax Center Inc must continue to innovate and provide value to its customers.
– Ulker Biskuvi Sanayi AS ($OTCPK:UELKY)
Ulker Biskuvi Sanayi AS is a Turkish confectionery company. It offers biscuits, cakes, wafers, chocolate, and candy. The company was founded in 1944 and is headquartered in Istanbul, Turkey.
– Willamette Valley Vineyards Inc ($NASDAQ:WVVI)
Willamette Valley Vineyards Inc is a company that produces and sells wines in the Willamette Valley of Oregon. It has a market cap of 30.51M as of 2022 and a ROE of 2.15%. The company was founded in 1983 and is headquartered in Turner, Oregon.
– Hengan International Group Co Ltd ($SEHK:01044)
Hengan International Group Co Ltd is a holding company that engages in the manufacture and sale of hygiene products. The company operates through the following segments: Baby Diapers, Sanitary Napkins, Adult Incontinence Products, and Other Hygiene Products. It offers products under the following brands: Huggies, Liby, Vinda, Nice, and Merries. The company was founded by Zheng Guangzu and Zheng Jianhua on October 18,1985 and is headquartered in Jinjiang, China.
Summary
Investors in EUROPEAN WAX CENTER have cause for optimism after the company reported strong financial results for the second quarter ending June 30 2023. Total revenue was up 10.7% year-over-year to USD 59.1 million, and net income jumped to 4.0 million, a three-fold increase compared to the same period in the previous year. Accordingly, the stock price moved up on the day of the announcement, signaling continued investor confidence in the company’s ability to perform. With strong revenue and income growth, EUROPEAN WAX CENTER appears to be on a healthy trajectory, suggesting a positive outlook for investors.
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