European Wax Center Reports Q2 FY2023 Earnings on August 9th
August 19, 2023
🌥️Earnings Overview
On August 9 2023, EUROPEAN WAX CENTER ($NASDAQ:EWCZ) announced their fiscal second quarter results for the period ending June 30 2023. This quarter saw total revenue of USD 59.1 million, which represented an increase of 10.7% from the same period a year before. Net income was also up significantly, from USD 1.3 million in the prior year to USD 4.0 million this quarter.
Share Price
On Wednesday, EUROPEAN WAX CENTER reported their earnings for the second quarter of the fiscal year 2023. The stock opened at $18.6 and closed at $19.2, a rise of 7.4% from the previous closing price of $17.9. This news was a welcome surprise to investors as the company had been struggling for the past few months due to the pandemic-related impact on the services industry. The increased stock price was thanks to a strong Q2 performance. The company also reported that they had added several new locations since their last report and had seen an increase in customer numbers.
These results are a testament to the success of EUROPEAN WAX CENTER and its ability to adapt to ever-changing market conditions. The company plans to continue to add new locations, invest in customer service, and innovate to ensure that it remains competitive in the marketplace. With such positive results in the second quarter, investors are optimistic about the future of EUROPEAN WAX CENTER. Live Quote…
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% |
Analysis
At GoodWhale, we have analyzed EUROPEAN WAX CENTER’s financials and concluded that they have an intermediate health score of 6/10. This score reflects their cashflows and debt, and suggests that they are likely to sustain future operations in times of crisis. We have classified EUROPEAN WAX CENTER as a ‘cheetah’ company, which is a type of company that has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. Due to this classification, we believe EUROPEAN WAX CENTER may be attractive to investors who are interested in high growth opportunities with a greater degree of risk. EUROPEAN WAX CENTER is strong in medium growth, profitability and weak in asset and dividend. More…
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
EUROPEAN WAX CENTER reported strong financial results for the second quarter of fiscal 2023, with total revenue up 10.7% year-on-year and net income rising from 1.3 million to 4.0 million. Investors responded positively, with the company’s stock price increasing on the same day. This result demonstrates EUROPEAN WAX CENTER’s strong performance in a challenging economic environment and suggests that there are exciting opportunities for investors in the company. With a solid balance sheet, good cash flow and an experienced management team, EUROPEAN WAX CENTER looks to be an attractive investment option in the coming months.
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