EWCZ Stock Forecast & Price Target

European Wax Center Inc. has demonstrated a noteworthy improvement in its SG&A expenses, which accounted for 28.5% of total revenue, outperforming both consensus expectations and previous estimates due to effective cost management across various operational areas. The company's gross margin increased by 50 basis points year-over-year to 32.9%, driven by successful promotional strategies, although it fell short of higher market expectations. Furthermore, the partnership with Dolabra Digital is expected to enhance guest acquisition and engagement, ultimately supporting both topline growth and margin optimization, contributing to a positive long-term outlook for the company.

European Wax Center Inc. faces a challenging financial outlook as net sales have declined by 9.4% year-over-year, reaching $5.397 billion, which contradicts previous expectations for less severe downturns. The company's adjusted EBITDA margin also fell to 32.0%, a decrease of 220 basis points compared to the previous year, indicating worsening profitability. Furthermore, future guidance suggests that mature centers are expected to continue experiencing transaction declines, with efforts to enhance guest engagement projected to yield no substantial results until 2026.