Reaffirms Fiscal 2024 Outlook
PLANO, Texas, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Today, European Wax Center, Inc. ( EWCZ) (the “Company” or “European Wax Center”), the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States, announced several strategic Commercial and Operational updates as the Company continues to focus on its key initiatives of attracting new guests, retaining first-time guests and winning back lapsed guests. These updates include a new partnership with dolabra digital llc (“Dolabra”), a leader in data-driven strategy, and a realignment of its Commercial and Field Operations teams.
David Berg, Executive Chairman and CEO of European Wax Center, Inc. stated, “Since stepping back into the CEO role last month, I’ve focused on taking decisive action to reposition European Wax Center for sustainable, long-term growth. Today, we are announcing deliberate measures that we believe will help drive top-line growth and four-wall profitability. First, we are excited to launch a unique performance-based partnership with Dolabra designed to streamline and enhance revenue generation and guest engagement.”
Mr. Berg continued, “Further, we are realigning our Commercial and Field Operations teams in order to best position our associates and franchisees to deliver on our key initiatives. As part of this realignment and renewed focus on improving our core waxing business, we believe it is prudent to pause the expansion of our laser hair removal pilot beyond our existing New York centers at this time. While we continue to believe in its long-term potential, this decision will best allocate our resources in the near term.”
New Partnership with Dolabra Digital LLC
European Wax Center is launching a partnership with Dolabra, a leading data-driven strategy and revenue transformation expert whose team has over 100 years of technology management experience. Dolabra will focus on enhancing guest acquisition, engagement and loyalty with the goal of driving sustained growth and operational efficiency for the Company.
“We are excited to partner with David and his team at European Wax Center, the undisputed industry leader in out-of-home waxing,” said Mark Pinho, a founder and Managing Partner at Dolabra. “We believe there is a tremendous opportunity to drive growth for the Company and to build a world class revenue function on top of the strong data foundation already in place.”
Commercial and Field Operations Strategic Realignment
The Company is realigning its Commercial and Field Operations teams to best position it to deliver on key initiatives and better support franchisees.
As part of the reorganization of its Commercial teams, Senior Vice President of Marketing Michael Brister will lead the Commercial function and oversee Dolabra’s efforts. Mr. Brister joined European Wax Center in August 2024 and brings nearly 20 years of consumer marketing experience from iconic brands including Shopbop (an Amazon subsidiary), Michael Kors and Louis Vuitton. He most recently served as Chief Marketing Officer of Body Details, a leading laser treatment provider. Andrea Wasserman, Chief Commercial Officer, has departed the Company effective September 16, 2024.
In addition, the Company has reorganized its Field Operations team to better support franchisees on their path to improved four-wall performance. The team will be led by industry experts and long-time European Wax Center leaders who will continue to focus on Operation Elevate, a key strategy designed to elevate in-center results, as well as new center performance and the maturation curve of recent cohorts.
The Company is also pausing the expansion of its laser hair removal pilot to focus existing resources on driving its core waxing business. European Wax Center will continue to offer laser hair removal services in 20 of its New York centers and evaluate key performance indicators such as adoption rates, retention, and guest acquisition in these centers to guide future decisions on expansion.
Fiscal 2024 Outlook
Additionally, the Company is reaffirming its fiscal 2024 outlook previously provided on August 14, 2024.
About European Wax Center, Inc.
European Wax Center, Inc. ( EWCZ) is the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States. European Wax Center locations perform more than 23 million services per year, providing guests with an unparalleled, professional personal care experience administered by highly trained wax specialists within the privacy of clean, individual waxing suites. The Company continues to revolutionize the waxing industry with its innovative Comfort Wax® formulated with the highest quality ingredients to make waxing a more efficient and relatively painless experience, along with its collection of proprietary products to help enhance and extend waxing results. By leading with its values – We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome – the Company is proud to be Certified™ by Great Place to Work®. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas. Its network, which now includes more than 1,000 centers in 45 states, generated sales of $955 million in fiscal 2023. For more information, including how to receive your first wax free, please visit: https://waxcenter.com.
About dolabra digital llc
Dolabra partners with leading consumer-facing brands to enhance and modernize their revenue-generation capabilities. Dolabra delivers results by building systems and processes that leverage 1st-party data to optimize revenue growth, focusing on (i) maximizing returns on marketing investment, (ii) driving customer engagement and spend, and (iii) automating marketing processes. The Dolabra team collectively brings over 100 years of expertise in technology management and more than 30 years of financial services and investment experience in market-leading companies such as Google, Yahoo!, Square, Zynga, MightyHive, Formation, Oak Hill Capital Partners, and the Boston Consulting Group.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to European Wax Center, Inc.’s strategy, outlook and growth prospects, its operational and financial outlook for fiscal 2024, its partnership with Dolabra, its capital allocation strategy and its long-term targets and algorithm, including but not limited to statements under the heading “Fiscal 2024 Outlook” and statements by European Wax Center’s chief executive officer. Words including “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “designed to”, “seek,” “should,” “will,” or “would,” or, in each case, the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
These forward-looking statements are based on current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: the ability to finalize definitive terms with Dolabra and to realize the anticipated benefits therefrom; the operational and financial results of its franchisees; the ability of its franchisees to enter new markets, select appropriate sites for new centers or open new centers; the effectiveness of the Company’s marketing and advertising programs and the active participation of franchisees in enhancing the value of its brand; the failure of its franchisees to participate in and comply with its agreements, business model and policies; the Company’s and its franchisees’ ability to attract and retain guests; the effect of social media on the Company’s reputation; the Company’s ability to compete with other industry participants and respond to market trends and changes in consumer preferences; the effect of the Company’s planned growth on its management, employees, information systems and internal controls; the Company’s ability to retain of effectively respond to a loss of key executives; a significant failure, interruptions or security breach of the Company’s computer systems or information technology; the Company and its franchisees’ ability to attract, train, and retain talented wax specialists and managers; changes in the availability or cost of labor; the Company’s ability to retain its franchisees and to maintain the quality of existing franchisees; failure of the Company’s franchisees to implement business development plans; the ability of the Company’s limited key suppliers, including international suppliers, and distribution centers to deliver its products; changes in supply costs and decreases in the Company’s product sourcing revenue; the Company’s ability to adequately protect its intellectual property; the Company’s substantial indebtedness; the impact of paying some of the Company’s pre-IPO owners for certain tax benefits it may claim; changes in general economic and business conditions; the Company’s and its franchisees’ ability to comply with existing and future health, employment and other governmental regulations; complaints or litigation that may adversely affect the Company’s business and reputation; the seasonality of the Company’s business resulting in fluctuations in its results of operations; the impact of global crises on the Company’s operations and financial performance; the impact of inflation and rising interest rates on the Company’s business; the Company’s access to sources of liquidity and capital to finance its continued operations and growth strategy and the other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended January 6, 2024 filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC’s website at www.sec.gov and Investors Relations section of the Company’s website at www.waxcenter.com.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact
European Wax Center, Inc.
Bethany Johns
[email protected]
469-270-6888
Media Contact
Zeno Group
Shannon Powell
[email protected]
312-752-6851
