By Dean Seal
European Wax Center’s profit fell in the third quarter as higher sales failed to offset a jump in expenses.
The franchisor of hair-removal waxing salons posted a profit of $4.2 million, compared with $5.3 million in the same quarter a year ago.
Stripping out stock-based compensation and other one-time items, adjusted earnings were $6.1 million.
Total revenue ticked up 1.2% to $55.7 million, below analyst forecasts for $59 million, according to FactSet.
The company franchised 23 new centers during the quarter to bring its store count to 1,026, up more than 12% on year.
System-wide sales, which represents sales for both franchisee-owned and corporate-owned centers, were up 2.4% at $240.7 million.
Overhead expenses rose 5.2% during the quarter, and a new $1.8 million tax expense dragged on the bottom line, the company said.
Write to Dean Seal at [email protected]
Read the full article here
