European Wax Center (EWCZ) Morgan Stanley Global Consumer & Retail Conference summary

Leadership and strategic focus

• CEO returned to day-to-day leadership four months ago, emphasizing a renewed focus on fundamentals and core business areas: attracting new guests, increasing transactions, and supporting underperforming centers.

• A deliberate pause in unit growth was implemented to prioritize business health and operational improvements.

• Franchisee profitability and engagement have become central, with a significant field organization restructure and enhanced support.

• Partnership with Dolabra aims to accelerate guest acquisition, retention, and reactivation through advanced marketing and analytics.

• The business remains confident in its model and sees substantial market opportunity, with 1,060 centers and a strong recurring revenue base.

Market conditions and consumer trends

• The macroeconomic environment is challenging, leading some consumers to opt for at-home hair removal, but core guest behavior remains stable.

• The average ticket is around $60–$70 per visit, with price sensitivity noted among new guests.

• Loyalty is primarily to the brand, supported by consistent service and proprietary products, rather than individual estheticians.

• The market remains highly fragmented, with limited new competition and most closures driven by cost pressures, especially in California.

Growth, footprint, and operational adjustments

• A laser hair removal pilot was paused to refocus resources on core waxing services and ensure the new offering is optimized before broader rollout.

• Geographic performance varies, with California centers facing higher costs and lower profitability; 16 closures occurred, six in California.

• Cannibalization is managed by restricting new center openings near recent cohorts until 2026.

• Significant white space remains for expansion, with the business estimating it is only a third of the way through potential U.S. growth.

• Net unit growth may be negative in 2025 due to closures, but gross openings are expected to continue.