The following is a summary of the European Wax Center, Inc. (EWCZ) Q1 2024 Earnings Call Transcript:

Financial Performance:

• European Wax Center reported stable customer frequency and spending for Q1 2024, center count rose 7.5% to 1,051, in line with expectations.

• System-wide sales and total revenue increased by 1.3% and 4% respectively, whereas same-store sales were down by 1.2% due to weather and Easter-related center closures.

• Profit margins remained strong with a significant increase in the cash position during the quarter.

• The company's board authorised a $50 million share repurchase program.

• Despite increasing expenses due to IPO grants, professional fees, and technology costs, trends indicate improvement in gross margins for the rest of the year.

Business Progress:

• European Wax Center initiated programs for increasing ticket frequency and attracting both new and existing customers.

• There is a continued focus on two growth vectors - expanding new centers and driving-in center sales; new strategies for 2024 laid out.

• Significant operational initiatives include investment in pilot centers, launch of new brow tint formula, and plans to expand laser hair removal pilot.

• The company is focusing on franchisee diversification and strengthening relationships with over 370 locations in the pipeline.

• Plans are underway to increase the revenue for franchisees through new guest acquisition, broadening Wax Pass penetration and increasing local marketing efforts.

• The company aims to achieve high single-digit comps for mature centers and expects to open 75-80 new centers in 2024 with more emphasis to the second half of the year.

More details: European Wax Center IR

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