EWCZ - Earnings call transcript Q3 2024 | European Wax Center, Inc.

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to European Wax Center's Third Quarter Earnings Call. [Operator Instructions] On the call today are David Berg, Chief Executive Officer; and Stacie Shirley, Chief Financial Officer. I would now like to turn the conference over to Bethany Johns, Director of Investor Relations.

Bethany Johns

Good morning, everyone. to Center's welcome XXXX Quarter and Call. Earnings you, European Third Wax Fiscal Thank David begin our Berg review call, today's On will third performance of with quarter and priorities. discuss strategic our brief a to provide will our and outlook. details Then our Stacie XXXX additional fiscal financial regarding performance updates

Following the questions. team available to will prepared be remarks, take the

would I start, you we to remind of our Before like legal disclaimer.

securities detailed and statements number and eliminate our factors risk of certain outlook reflect Please note or to revise this statements will light statements of measures, revision adjust to that the as financial affect within results our our issued the statements of discuss involve forward-looking forward-looking the matters actual the of refer no federal filings results call, We future date in obligation during of call, cause SEC our these only the of results. that publicly may release in forward-looking that meaning of the take about earnings results release we and business are a will opinions materially. also laws, today, to make earnings to or our non-GAAP description of statements our new we Please GAAP risks which our today. other more which uncertainties the issued events. well Also, impact any to information certain this items. could as today as referenced differ These our including a for of release forward-looking

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time guests. to team also operations where they to reinforces how our energy and the continues amazing I'm been best spending for Our field center hands-on an commitment elevating the to of align these our EWC leaders with have support practices, the key ensure Listening centers brand. share delight on on focus active manager love, listener in goal deliverables have and and X-wall center performance. on provide best managers calls

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of unit my new growth. to Turning now assessment

As I development I responsibility quarter. the earlier, mentioned during function the for assumed fourth

I've review As further, and our closing. the in process, we at existing have both risk intensified the additional comprehensive into identified pipeline of a of business dug network and our centers

work such implementing as development guest market or more certain team rigorous performance, expiration team as are they top multiunit strong leadership tracking to also upcoming of financial now proactively with an closures we continue and reevaluating The terms visibility, better near-term acquisition development consider With reasons, including license place, portfolio planning. closely We franchisee are and or plans, processes to renewals, in impacting taking They for and partners monitoring of higher-than-expected challenges optimization decisive pressures, line the and health portfolio currently new cost macro increased ongoing expirations licenses. a agreements. variety assessing franchisee manage lease expanded renegotiating action. is

returns franchisees concepts. and expect relative other to recruit new at Lastly, solid to qualified our attracted are model to who we

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to centers. to standpoint, while an we this we XX to opening center have XXXX, than of center be in closure do XXXX. was confidence From a full of less gross above-average there for of closures our X,XXX our foresee additional translating by guidance. end to fiscal for in rate year, we previous continue net X to which new XX expect the and opening year, we XX been XX For centers, Overall, closures net basis an existing expect new year-to-date, the have openings footprint XX X%

we We to new full early realign with for give business dialogue and this address partners remain the gross too macro-related basis constraints, positive tickets to to its as grow for is next it in openings to on time, XXXX, expect a guidance our at work franchisee do potential. While active we have near-term year.

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thing certain. As we one is ahead, look

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key first updated our I our As in to with into deep strengths and teams want to my external evaluate listened and our remarks, and our partners dove teams the my intently to priorities. X and business I've to partners, CEO focus up seat. those I months wrap the our back align opportunities, prepared define areas franchise summarize

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and so our will to time stop. goals, achieve it take we us do While not will

potential. and the and will the accelerating long-term guidance our Wax year. performance for its turn growth QX remain brand and to over Shirley call like in discuss Center Stacie We to the that, of we rest to I'd keep financial forward, With confident European the

Stacie Shirley

you, David. Thank

my metrics on that begin like in to instances, this adjusted speak remind I some to I'd I Before remarks, everyone will call.

You most out-of-period in that to press with can adjustment the comparable our find balance in an to are contained sheet today. and release filed Note the XX-Q. reflects related Further quarter SEC third GAAP tables reconciliation figures XX-Q intangible details our assets. our

week, XXXX reminder, a a but years and XXrd As fiscal XXXX to both XX-week included returns fiscal year. XXXX a

with begin third let's Now our quarter results.

in openings $XXX.X year. to X.X% X.X X year-over-year. macro year-to-date, decreased on point gross products are call add the System-wide point, Same-store the we to in by our $XXX.X environment. in last a X.X% of new sales pulling increase We relatively resulting flat quarter primarily line noted, guests revised a during million retail quarter same X,XXX revenue $XX.X our representing growth earnings same sales compared in with a financial X year. million a August. percentage in performance compared was also were flat. back closures, last QX had offset sales with percentage X.X We same-store to And on David As challenged centers. XX Total of at ended million expectations quarter, provided centers, the the in due decreased net

to nonroutine margin, year Advertising due points $XXX,XXX to million XX.X%. primary the driver basis points return-to-office million executive were XX planned a XXX efforts SG&A to debt which not of nonroutine to including continued These savings to the basis versus efforts of margin $X.X $XXX,XXX interest adjusted expenses, last cost the from last offering to income, prospective EBITDA traffic X.X% expected, severance, $X.X XX%, in improved pursue increased expenses million. prior that year. our decreased quarter to period. to million million net million. we $X expenses the XX.X%. gross $XX.X income net favorability quarter. same With decided tax expense and to to year related million expenses of $X.X a from approximately $XX.X drive the year-over-year increase continued decreased Adjusted million interest tax $X.X from to rate effective as million costs. in XX.X% third decreased EBITDA and adjusted reorganization As drive campaign seasonal timing year Income from expense and last increased decreased from to $XX.X XX.X% or our of from to decreased $X.X XX.X% and And

biggest even million balance to QX We was strong million in cash through ability $XX provided capital-light model environment. highlights activities with $XX,XXX of to which asset-light, investing operating to Turning outflows, the cash. softer flow in by ended one cash consumer $XX.X the in compared sheet. our strengths, Net free a approximately our generate

repurchase Class At $XX $XX and million cash $XX.X conviction underlying notes. authorization, the a During long-term had million our to was Net we business X.Xx quarter value flow in XX-month the revolver of outstanding million fully A million its again that and approximately demonstrating remaining our undrawn trailing our share secured million shares, under potential. our adjusted deployed of we senior end, $XX EBITDA. quarter, $XXX under repurchase debt once

repurchases, share paydown dividends an gives position to basis. on ongoing us and liquidity the flexibility consider strong continued Our debt

use to potential units purchase the are franchisees. We sheet from also select to evaluating our balance

committed discipline as and consider opportunities. we always, to As we remain stewardship these financial

balance the Turning outlook for now of to our XXXX.

with fiscal financial reiterating to a continues for outlook expectations. performance as XXXX. financial our latest in our mentioned, we line result, our trend David are And As

$XXX million, X.X% sales sales of core revenue $XXX continue approximately million, network same-store XX% $XXX negative to positive brand guests standpoint, our million of our to and We that to million a and $XXX guest represent to From encouraged of sales. X.X%. committed we system-wide expect of are to remain

and pleased to enable areas period, of we contrast, implementing ticket to less is than Pass a on growth, in but positive impact action new notable promotional future far, outlined forward and we with are in are stronger key and we Wax growth look challenging the We ability million so a our tickets. have In Wax had the $XX plans mind, XXXX. has our new improve which SG&A to the the David to standpoint, macro Pass loyalty guest remains through in terminate. semiannual focus the our And year $X gross frequency. sales outlook elected attract indicator a environment and our to of guests increase in to place $XX million million strategies quarter coming EBITDA efforts we to refinancing adjusted profit third debt to approximately Keep income. exclude and XX% $XX transitions, office for quarters. million full From fiscal expect to expenses adjusted in million that will $XX continue of adjusted return approximately the to metrics and these margin net executive we related halfway our

However, pilot. these up laser an to $XX.X expenses expectations tax and rate related of no There XX% to discrete $X expense do our hair items. of removal is our effective interest to of million metrics include change million before for

Finally, David XX this XX gross to of of mentioned, centers, we new in are openings already new terms which continue open. year, as expect

continue fiscal XX network net our environment portfolio, expect XXXX. and dynamic we openings review to to manage we As in closure new XX a center

Before the long-term to moment European Center. to the Q&A, to we on open for I'd call focus that central remains opportunity a like take Wax

for value shareholder generates supporting returns opportunities partners our asset-light long-term our our and flexibility guests, flow, to shareholders. the Even a guests, new business significant to is in consider model cash and us franchise franchisees driving gives and unwavering. to commitment drive generating environment, various Our challenging

and David of in We'd on the coming fragmented look And in noted, in like towards vision on clear our of decisive call progress taken enduring to months. executing focus unmatched turn We you our an action continue a for the have we the runway areas industry. leadership long over future front as growth now questions. have position this us updating to a brand. for of We fulfilling forward highly our and to

Operator

[Operator Konik Instructions] Jefferies. Our come first with Randy the will from question line of

Randal Konik

back, appreciate evolving approach on a strategies taking being I thoughtful, David, you're It's of, reflecting here. step and the kind them. And the you're you're

you're of that function, real seeing units that perhaps the are in could years or opened that or something units [Technical chosen more were that Is the color there's is causing those way you some like it last couple common seeing Difficulty] that feels the X that's or versus you years estate As us anything like locations in some give were risk. underperformance something units maybe that at there different else What is that on? than ago that. and different, location are obviously, is that

David Berg

for we've on an it just was don't probably question. the real issue. thanks of year-to-date, think this or that the there's had bad where XX a real Randy, X I a estate. is closures There's estate maybe instance pick

around I conditions think franchisees our have that the this really been much facing. macroeconomic more is

certainly expiration to macroeconomic the renew elevated coming folks or and of costs their given more desire areas, potentially area. a just pressure up certain to trade So, elected licenses wage different some costs they difficult a to in rent relocate higher-than-expected leases a to and not and or

we've where optimizing multiunit Sometimes they're their owners, portfolio. got just

estate. I wouldn't on So, it pin real

the coming strong visibility current to what's development looking our the with to franchisees, we've are attractive that and seen given believe is outside it digging very is licenses where at the interest us, franchisees we that to which is step for the we we're got in terms focus of the be that franchisees we've franchisees. crystal comes returns our which working our multiunit system the take we've day, to in our more model I folks have think will at an health sense. improve to we expire to attractive key X-wall better an with overall in with deeper when also drive a agreements profitability, my I leadership back and will the desire pleased renegotiate think franchisees, to And and we talked lot all makes drive team for of transfers. work doing, it what to priorities, and our existing be we're have new financial just where Randy, seeing of ensure to to about what of end is there still that have. tickets the At guests, going continues our of on be our clear, And -- development that and

Operator

Dana next from come will Telsey with of line question Our Group. Advisory the Telsey

Dana Telsey

to closed. back are circling the Just units being that

secondly, all like you look As you then metrics What members through And reframing landscape? did regionally? you seeing terms, see? you'd there there in network, close? for? How in want And those your new of franchise at franchisee to what customers is Are wax? you consumer there how close? calibrate performing? are from European the you'd any go changing to Pass centers, are this that versus opening that is are are not, your out those defining more around California what there like you for would And And that to Wax any

David Berg

get always love that in question. We'll I try X dissect questions to those. one your Dana, you

in today. have material with the slightly agreement agreement we reverse that don't our take we anticipate me any franchise franchisees changes From a standpoint, in order. franchise Let

units reinvest our is want to EBITDA we've units that that mid-teens, in closed. successfully to been that incents the be very being system. stay has and the base. around -- from XX% X-wall current franchisee get and low like growth question closed they our Your units Obviously, historically we our open they and our franchisees would ramp to preference fortunate certainly come margins And we

and guests the tickets to And goal. on system. we're our into focused new back that's So increased again, why driving

about model terms still of That the in post-COVID, been really have production our has think that of that pressure talked I of labor. tougher seen model been of last XX% guest in there, bit is little the core aspects rent recurring the of core or costs been a productivity same. and that's our guests quarter one California, and And of guests, And as strongest for the have behaved our revenue, on situation. business Regionally, higher here. they macroeconomic have -- behavior particularly pre-COVID, revenue California think we accounts our the centers. a there's even that so of we this that I a

that get sure is we'll pricing. I'm asked things the about of One

about, continue places those higher that think costs, there bit We a to that help way that given little studies are sense improvement price, could we where do see those take via franchisees a of elasticity makes in might particularly in California.

Stacie Shirley

only mentioned I add, I thing Dana. think the would you Wax Pass,

only as season. on So, promo is, we Pass there through mentioned the halfway about the the call, thing we're Wax

I And increase. those so is to guest be reiterates far, we've Wax Pass they indication And just as we're to pleased continues core very and what relates growth seen. of future the to an it as with very, loyal again, that continue think

Operator

for moment our from will come Komp next and the One question, that Jonathan Baird. line of with

Jonathan Komp

I come time might success the your the rate far on franchisees. the past place current David, existing outcomes the the more it's do gave XX% of net you unit think little of some thoughts a more color. I just on range in your could And you franchisees XXXX? in just a infrastructure follow-up, you as attract of that in given that give to years follow up insight lead any Can openings maybe few so? bit share need for and more know to growth you have directional from or so and

David Berg

next we just basis. that have net have that in more that we XXXX, guidance given a that expect new that John, will March. the it's to when talked my give about early closures is announced we we So, we do clear in on continue about want could and remarks that gross be what number. gross would negative We'll openings possible we dynamic to environment What was in, a we're QX specific year, openings prepared on on exceed

as So, on probably going we're John. that far that's as guidance,

bringing that's discussions base. our the been growth now response very -- current current If from as with with have Again, right that. we fortunate, in us Dana's want continue our we've our to has strong grow development come question within on that preference I do agreements I our hired is franchisee about that have With to on of franchisees, we our model on my in readjust signed that or to last also mentioned have talking think the on given got franchisees to returns. new we've working couple going franchisees, that's from and And development the an a other specifically the but about team. team cost respect have with the cash-on-cash attractive a our entry, folks new returns system. that X-wall current is into of you will this still month development multiunit to that standpoint, folks both the coming be work that with

make count front here that sure So, said early the And I as my unit going want the and ramped in up it's we given a we're remarks, just we is growth consistent, thoughtful that how prepared and days. last discipline about to little forward. bit that, reliable, too they've in XX But the around center. grow new we're our

Jonathan Komp

thoughts preserving versus organization Stacie, you overall at units keeping or And the just a plan level don't any you in infrastructure growth longer-term just in as a how place balance the of to follow-up, scenario David give in could XXXX, high for grow a the profitability opportunity? the where

Stacie Shirley

the this increase say, results. tremendous will sales, overall growth haven't about year. obviously, guidance, Sure. we when impact gross when below shown think anything given that margin, some the at What we've certainly Thanks our we or But we for and any question. I'd look

then Once position would come points. when deleverage. a should lot. our require we a put as And we would growing, reason there's to increases necessarily as from to QX cost that structure that, report sustain coming we but top start But see to us so, any relates cost And to in to around be perspective, will results don't a the think more XX that change. expect able our get line leverage we -- would We basis XXXX. it no lever that we don't in level that's we to

Operator

from the come for with Piper line that moment our will One of next Sandler. question. Wolfmeyer Korinne And

Korinne Wolfmeyer

unit color is it's not, you if bit franchisee Not provide what then the some to units the on on worth or these of much, using using little point criteria a umbrella? unit to looking under the too corporate cash closing a harp not could bring maybe making at decision? some the you of assess to that what of if but growth And ultimate you your metrics Just at? consider would are you're

David Berg

them that know, we the potentially for a them balance our a close awareness if that do to franchisees great event or we a monitoring or cash that. closure or that, our support work P&L within can that add starting potential is thoughtful policy, and to to are we've last to their talk ultimate with to got make the areas additional of someone have generates could want the model, can do closely can listen, stay we look we that we to that you close, are days have using the help to that that decision we be so in at-risk a about We more got there and that, a list I really better helpful, mean, to if that Korinne, with franchisees way. to as open sure where lot lot where to or either are this opportunities work flow. robustness, sheet, is we've that certainly XX visibility and closure On so transfer training, there in they with the in they that we have

an want about One close. do some cash We manner. that a is to that to things in to that might We're always asset-light are given that thoughtful of the up the to do returns, does instances using be deploy the buy franchisees model. of that think got to going most again we attractive opportunities we cash our But where And want make make in sense. that places sure sense. X-wall may there make we've absolutely

Korinne Wolfmeyer

there a as touch XXXX think on keep that into pass to maybe prospective come is that And franchisees? can these to little you've unit European XXXX Is closing And bit into opportunity the we franchisees way Wax potential growth could interest to units something to interested from do? Is wanting additional to up? then something that on you a group. still about that started and

David Berg

Yes, days, there's think I really Korinne, and early X.

able think to to have That's partners just is transfer certainly from little on operator a current interest great stronger And great the a to said, talking a us. we're "Hey, concepts. that And franchisees I again want a I that the low takes early exit about we've want again, that oftentimes, franchisee have Again, folks to to the result in might soliciting or read come have that expect for cost than the franchisees we struggling is those here's and that have our But of franchise other our better all and early you of bit.â€ belief centers. seen current a that or that think reinforces very attract can entry are folks business can in into we given, system. system. days the model the that these that our returns where returns

Operator

And Simeon that Gutman question. Morgan next of moment with for will our line come Stanley. from One the

Unknown Analyst

Lauren or if guess for bit. maybe the has to color performing comps economics. maybe your little you you you expectations? Simeon. give in can is more elaborate a Is enhancing expand was unit I business This seen on wondering on because unit how economics this press or declines? the I Just on could are mentioned relative this release,

David Berg

question. for Lauren, thanks the

as that's standpoint. is productivity overall I to new guests, look focus those really driving going a X-wall key at we right, more driving increase about think the areas, tickets, from this

understands make team everybody to and our be franchisor to for the want as at department just is the franchisees our service here sure I that corporate help perform them customer So, to X-wall. the job

That Dolabra place, what do with our revenue just guests buy more to drive you've doing focused we how through how getting we message we're smarter that how new really talked new the think on media, how about, partnership generation. is guests. about the is lot and we both where a I creative, we driving existing

resources aren't that basis. them. XX is focus It's to kind enhance you X-wall our just that of talked to a hyper So, productivity those those reallocated that X of what really said, do all have all areas is we're about to focused to or on which at and X continue address we've

Unknown Analyst

of cohort? the of committed maybe base I the just mentioned is brand. guests about lapsed guests you should retention remain the specifically? follow-up any core my guests? we the think how And the then guess also, pleased color And the you with to just core on Are

Stacie Shirley

start, I'll Sure. and can add. David then

guest be that said, to sales. we our as continues core So, system-wide about XX% of

we pleased are So, have with that, that changed. routines not

to for they've us. proven a guest be loyal so, very And

far we're promo is with with our so, Pass pleased how And pleased going. so Wax Certainly, that.

well. center. challenge and and as good guests talked we've is the new it of really issue we piece about The have the that to as bringing in that is So

are the help funnel which the the core team will And about spoke around overall that as well that grow we as to help specifically guest. then drive into marketing additional those center, continue and guests fill so initiatives operations to

David Berg

franchisees period of revenue. into CRM an Again, partnership to really hyper-personalized center. holder if them that with that that is drives journey, team that focus visited it's convert the then in real with there, amazing specific our those we they're that a Pass more guest. they're time, from making experience haven't us once a amazing And they that ensuring so in hyper our into core once operations efforts in, into and talked about so the that And that guests guest being guest guest core recurring getting lapsed guest the we think bring that Wax that us about center on in retain back that you get sure driving a experience, then them that we marketing

Operator

for our Guggenheim. with moment come Heinbockel of that question. One the next line And will from John

John Heinbockel

specialists, know with too at about wax improve don't to And less that is productivity. doing think cut percent one on you specialist you working got much, think point to then about what and/or the labor, X% I fair? being, that start Is How are to on cost time. ways any of do address back model, Dave, network. wanted with the than can't but the capital number you you And underperforming to so, economic centers, when think there in catch-XX I the think you're that? wax -- that non-revenue ways do I about you

David Berg

is them underperforming of if with a we are So, I mature really probably or is about of about think stores percentage, definitional, enhance EBITDA, again, it's question small we John, negative a But centers. so to that profitability. how that right? less as continue work And always. good nonrevenue to think part I XX% one mean your

we From make center think do how affordable and we can the cash-on-cash new to faster standpoint, to a I breakeven box a construction ways look returns. and that more and so we couple opening of ramp of there's of a things. faster those at continue cost that get drive

system. look them drive opportunity to as to help concert continues offset to new on, work make Portland those challenge them our we real labor is a And be and are to we've reactivate what continues at. been conscious Labor, with to franchisees got franchisees. those Seattle that that our as in sure California Northwest regions guests particularly or there guests area there. the retain like and we I costs to of that high-cost states out And But pricing haven't So into again, called John, we've back that specifically, be mentioned, our can those is go us of an we looking get like in areas. I that coming at that the keep once some

doing we and and will moving that The back get going So really Dolabra that's talked that truly of the what they're we're feel to thoughtful help about. doing, flywheel to growth is us our hyper that we confident that, get focus. that traction

John Heinbockel

'XX, a too do right, an just kind Has that, to it's is of still you see -- apply? ago do we a or And about, starting a not -- And out bit? 'XX, you if it it part applies, couple think or of had itself to think manifest still years to but think that does you as follow-up sort do of certainly some know? we algo early to it of 'XX, changed little that

Stacie Shirley

think that in we're I this not to point, provide really guidance. at place a

productivity. the As really and on improving the David thoughtful we talked about things and doing talked X right. also, growth focused tickets And very new that we're the just that attracting increasing about, guests, just

that this But weeks. at we don't 'XX, won't point, get there's future. able So, think to don't in no we'll we that to we know back the in say. that believe coming that I be can the reason more

We front of white a us. space in lot of have

still supportive have excited a about the very lot We of brand. franchisees are and that

And we're so what that's focused on.

Operator

Nunez of line of question Bank next Our Melanie America. Instructions] [Operator with will from come the

Melanie Nunez

new of you're you middle past just the wanted efforts ones think I know plus you've I I a the in did some other time to limited Pass California promotional the in the ask done Wax you semiannual. talk and in efforts. X any then Can for college on about on promotional front? students. X

some call through? out? will of that more anything of be just Dolabra So these to new at come a after initiatives Or factor

David Berg

for thanks Melanie, the question.

prepared the X. X driver semiannual results As days. remarks, as with a about sale Wax the into period, of in you early continues know, becomes for weeks X promotional X plus sales plus just this have a very Pass be talked X past That Wax her in the the we pleased to Stacie where great even Pass us, we're though our XX

on not and a right? are brand, We rely promotions to And discount not going we're discounts.

looks our our is working with that the Council we're clarity have of One around real to Franchise things subcommittee Advisory our marketing like. what calendar XXXX of promotional

got around our don't clarity system just have our think that mentality additional of going enhance But support the impacts into and Dolabra bring to continue what we're drive to that and use that lens Clearly, offers we've sure to them. forward. in incredibly the we'll guests franchisor And in, that's might we move both to I any it, overall with the And see, impact time better incredibly know again, understand that going lens at to I limited coming that important insight the we promotional franchisee So, change. better those that use to that helpful what product X-wall in on that want be, from think LTOs as is excitement be profitability pricing we It's going we guests standpoint. have and purchases. keep that that promotions make promotion to franchisee in it. we'll a continue run is we make a and mind to our

Operator

question a Jefferies. We follow-up Konik Randy have from do with

Randal Konik

to issues reset just for term I I to your here to David, Sorry wanted focusing get and you, we're back -- the this with just as earlier. on near the phone wanted items. perspective,

us give the TAM. Just long-term on thoughts your just

an that's industry You still have fragmented.

And I those it's in You're the same, the us put how terms if think or are not, less any us California, largest it on know. you branded same, want in side? player. you that do where don't about of the perhaps about know. if think pins the to just the And is ground, in changes How let there store changes any is

about term in just perspective want on get to how quarters obviously, reflected is the Just your we to going should be and long is already of thinking next written be as couple the stock. off

Just give your there. term perspective long us

David Berg

continue a that's sure quite and is in about they be go recurring TAM that I that And that solid, growth at continues have model in are terms we've in Randy, doing think still successful. the to that thoughtful, in bigger XXx consistent, sales. I right? we count Randy, business forward. is a absolutely be, start that that opportunity U.S. the standpoint, open still that we like white centers, revenue feel would the in talked From leader, unit than we robust. competitor, pleased make with. that thoughtful biggest to our space with the CAGR to as we're still great about we grow growth of that fact that system-wide We a new got that as plenty grow, can room of think And next way believe there model of our we the it's We modality We we have to is very Xx really the ramp reliable terms we're as the to focus talk still often. still bigger that about,

feel again, more make leadership much by can't media our we centers. can in partnership question Dolabra put position we, investments of our So, permission. about We those gives competitive where that's our a guest that's brand highly didn't and terms a to think about another we better in with of place spend get dominated both us to work, smarter We the the fragmented, continue with but the category going from standpoint mom-and-pops, in the great working in to that laser experience New York guest test that are set candidly technology that and today, do. our our also dollars get

permission to going to we're us and make do. sense us that So, our look for modalities guest that gives at

So, we continue to feel good opportunities, an overall and white space. about standpoint the from Randy, market

Operator

Jonathan a Baird. have Komp do with from question follow-up we And

Jonathan Komp

could quantify year-over-year from do, Just the just already if X to or this, of you if sorry confirm, purchased about Could you squeeze mentioned? talk have could I you that through would given that remind if or the you follow-ups just last have XXXX. franchisees? to media if wondering income And units be corporate in flow here. working up statement? then, David, any budget Stacie, you And us you I'm missed the just how some changes

Stacie Shirley

our in which this one. purchased But first That's any of not always let to So easy me with at our no, franchisees, start this we purchased units. that. transfers At had We've kind any. course. have an we is not point no, have time, point,

David Berg

that, talking can how in we And improvement in-house, about more efficient. with of cut I media. that we group think Part that. We've to at significant talked of do fairly about some our see bringing was work spend what should a the you They the that marketing towards funds, do for as that that's there's us of the stewards opportunity know, terms clearly to in think And in contribution. we're franchisees, an we most more X% dollars John, improve franchisee first being this the working some on of franchisees, We got effective. way and year-over-year. money

as media, Some really our is of and the those us working system a classic good for for from certainly which franchisee retainer relationships as and away good franchisor dollars redeploy will those well. into move

Operator

now queue turn the I Berg this David I'm showing to over questions Mr. remarks. in time. to the further at call no like would for closing

David Berg

when the and you forward Thanks, today, coming talk we'll QX in all much. talking days certainly and in everybody, to to follow Thank March. early more weeks to look in you and we very about listening for

Operator

all This for concludes program. today's you Thank participating.

now disconnect. may You

European Wax Center (EWCZ) 14 Nov 242024 Q3 Earnings call transcript