Market Hit: Consumer Edge data tracks EWCZ earnings miss

Consumer Edge’s US transaction data was predictive of European Wax Center’s (EWCZ) systemwide sales miss, as the salon reported +1.3% year over year systemwide sales growth, close to CE Implied Reported Growth of +1.7% and below consensus estimates of +4.9%. EWCZ management attributed the miss to a slower than expected uplift from recent guest acquisition efforts.

*CE USA1+USA2 eMax panel-C+D

New Customers vs. Core Guests and Repeat Shoppers

Management explained their guest acquisition efforts include growing spend and frequency of their core guests plus attracting first time guests. According to the company, core guests (wax pass and routine guests) drive approximately 75% of the company’s sales volume.

CE data reflects a very similar trend with return customers (anyone who has made a purchase at an European Wax Center in the history of the panel) accounts for approximately 85% of the company’s sales over the past year.

While transactions per returning customer has declined over the past five months, CE data shows an increase in transactions per new customers over the past four months. Perhaps, this supports management’s commentary that their efforts were working on new customers thus far into the second quarter. 

*CE USA1 Cohort panel

High-Income Customers Drive European Wax Center’s Growth

The company has commented that the average customer has a household income of $100K+, with an even higher income for the most engaged guests. CE data shows that over the past two years, customers with a household income of $100K-$150K, on average, transact the most per quarter at the European Wax Center. 

*CE USA1 Cohort panel

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using CE Transact US, CE Vision, or other products for beauty insights, retail data, and other industry data year-round to track trends like these, reach out to schedule a demo.

About the Authors

Katherine Bjorkman is the Director of Insights for the CEIC. Explore more of her insights here and follow her on LinkedIn.

Rachel Zucker is an Insights Analyst for the CEIC. Follow her on LinkedIn.