EWCZ Stock Forecast & Price Target

European Wax Center Inc has demonstrated a measured growth in WaxPass sales, achieving nearly 2% year-over-year growth, which reflects a steady demand for its services. The company's improvements in guest contactability, increasing from 38% to 57%, indicate enhanced engagement strategies that may contribute to future revenue growth. Additionally, strategic initiatives across various markets, including significant touchpoints and tailored marketing efforts, have resulted in performance improvements, with center margins benefiting from gains of up to 170 basis points.

European Wax Center is experiencing a decline in operational metrics, with a modest 0.2% sequential decrease in the number of centers, remaining flat year-over-year at 1,062 centers. The company faced a significant topline contraction of 1.9% last year, leading to revised estimates projecting a further sales decline of 4.6% year-over-year for FY25, resulting in anticipated revenues of $207 million. Additionally, adjusted EBITDA expectations have decreased from previous forecasts, indicating broader financial challenges ahead.