Morgan Stanley Reaffirms Their Sell Rating on European Wax Center (EWCZ)

Morgan Stanley analyst Simeon Gutman reaffirmed a Sell rating for European Wax Center (EWCZ) with a price target of $4.00. Gutman, a 4-star analyst with a 3.7% average return, covers the Consumer Cyclical sector. The analyst consensus for EWCZ is a Hold, with an average price target of $5.02.

European Wax Center, Inc. Reports Strong Net Income Growth

European Wax Center, Inc. Class A (EWCZ) has reported strong net income growth in its Q3 earnings. The company, a leading franchisor and operator of waxing services in the U.S., is known for its innovative Comfort Wax® and operates over 1,000 centers across 44 states. Since its founding in 2004, it has revolutionized the waxing industry by providing a professional personal care experience with highly trained wax specialists.

European Wax Center’s Balanced Earnings Call Highlights Growth and Challenges

European Wax Center, Inc. held its Q3 earnings call, highlighting a 9.6% increase in adjusted EBITDA to $20.2 million, alongside operational improvements in guest engagement. However, the company faced challenges with a 0.8% decline in system-wide sales and difficulties in acquiring new guests. The expected closures for the year have been narrowed to 35-40 centers, and the company reaffirmed its full-year guidance, projecting system-wide sales between $940 to $950 million. Despite challenges, European Wax Center is focused on strategic initiatives for sustainable growth.

European Wax Center | 10-Q: FY2026 Q3 Revenue Beats Estimate at USD 54.19 B

BUZZ-European Wax Center rises on strong third-quarter results

European Wax Center's shares rose 17% to $4.26 following strong Q3 results, reporting total revenue of $54.2 million, surpassing analyst expectations of $52.5 million. The company posted a quarterly diluted EPS of 9 cents, up from 3 cents per share last year. It anticipates 12 new center openings and 35 to 40 closures, resulting in a net loss of 23 to 28 centers in FY2025, while maintaining its fiscal 2025 outlook. Year-to-date, the stock is down approximately 39.4%.