European Wax Center, Inc. (NASDAQ: EWCZ) reported that it completed 20 net center closings during fiscal 2025, a figure below the company’s earlier guidance of 23‑28 closures. The company also opened 11 new centers, bringing the total number of closures for the year to 31. The net‑closing count reflects a more conservative network‑optimization pace than initially projected, indicating that the company is retaining more of its existing footprint than expected.
The company revised its fiscal 2025 guidance to a system‑wide sales range of $945 million to $948 million, slightly lower than the $940 million to $950 million range previously cited. Same‑store sales guidance was narrowed to 0.1 % to 0.3 % growth, down from the earlier 0.0 % to 1.0 % range. Adjusted EBITDA guidance was raised to $72 million to $74 million, up from $69 million to $71 million, while adjusted net‑income guidance increased to $33 million to $35 million, compared with $31 million to $33 million. Fiscal 2024 sales totaled $951 million, so the updated system‑wide sales outlook represents a modest contraction relative to the prior year’s revenue.
The guidance adjustments stem from a combination of stronger cost control, improved unit economics, and a more disciplined network‑optimization strategy. By closing fewer centers than anticipated, the company preserves franchise revenue streams while still trimming underperforming locations. The narrowed same‑store sales outlook reflects modest organic growth expectations amid competitive pressure and a cautious view of consumer discretionary spending. The upward revisions to EBITDA and net income suggest that the company’s cost‑management initiatives and pricing power are delivering margin expansion, offsetting the slight sales contraction.
Chris Morris, Chairman and CEO, said the company is “pleased with the progress made in 2025 across our key business priorities, which has helped establish a stronger foundation for the company.” He added that the focus for 2026 will be on strengthening marketing and operational capabilities, making disciplined strategic investments to elevate the guest experience and drive long‑term performance. The comments underscore confidence in the company’s execution and its ability to navigate macro‑environmental uncertainties.
Investors responded positively to the guidance upgrade, reflecting confidence in the company’s operational improvements and its disciplined approach to network optimization. The guidance revisions signal that management believes the company can maintain profitability while pursuing modest organic growth, a view that aligns with the company’s recent performance and strategic priorities.
European Wax Center will publish its audited fiscal 2025 results in March 2026. The company continues to operate primarily through a franchise model, and its network‑optimization strategy focuses on closing underperforming centers to improve unit economics and support future growth. While the company faces modest same‑store sales growth and competitive headwinds, its cost‑control measures and strategic investments position it to sustain profitability and pursue selective expansion in the coming years.
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