European Wax Center Analysts Cut Their Forecasts After Q2 Results

European Wax Center, Inc. EWCZ reported worse-than-expected second-quarter sales results and lowered its FY24 revenue guidance below estimates on Wednesday.

European Wax Center reported quarterly sales of $59.87 million which missed the analyst consensus estimate of $61.33 million by 2.38%. This is a 1.32% increase over sales of $59.09 million the same period last year.

European Wax Center named David Berg as CEO, effective Aug. 12.

David Berg, Executive Chairman and CEO of European Wax Center, Inc. stated, “I’m excited to be back as CEO at European Wax Center during an important time for our business. While the second quarter marked a period of top line growth, anchored by the consistency and stability of our core guests, the ongoing macroeconomic environment continues to pressure consumer spending and our ability to attract and retain new guests to our brand. We have also worked with our franchise partners to reevaluate near-term development plans and extend the timeline of new center openings to allow more capacity and resources to improve overall performance. As a result, we are updating our full year financial guidance, including our outlook for new center openings.”

European Wax Center shares fell 27% to close at $5.06 on Wednesday.

These analysts made changes to their price targets on European Wax Center following earnings announcement.

• Telsey Advisory Group analyst Dana Telsey maintained European Wax Center with an Outperform and lowered the price target from $16 to $8.
• Baird analyst Jonathan Komp maintained the stock with a Neutral and cut the price target from $13 to $7.
• Citigroup analyst Kelly Crago downgraded European Wax Center from Buy to Neutral and lowered the price target from $16 to $5.5.
• Morgan Stanley analyst Simeon Gutman maintained the stock with an Equal-Weight and lowered the price target from $14 to $5.

Read More:

• Pfizer, Conagra Brands And 2 Other Stocks Insiders Are Selling

Considering buying EWCZ stock? Here’s what analysts think: