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European Wax Center, Inc. has submitted its 10-Q filing for the quarterly period ended October 5, 2024.
The filing includes financial statements for the quarter, showing a slight decrease in total revenue to $55.4 million from $55.7 million in the same quarter the previous year. This decrease is attributed to a reduction in transactions at existing centers.
Product sales decreased slightly to $31.7 million, while royalty fees and marketing fees saw marginal increases due to new center openings.
Cost of revenue decreased to $15.0 million, primarily due to negotiated cost savings. Selling, general, and administrative expenses increased to $17.5 million, driven by higher payroll and benefits expenses.
Net income for the quarter was $2,030,000, down from $4,118,000 in the previous year. Net income attributable to European Wax Center, Inc. was $1,480,000, compared to $2,883,000 in the previous year.
Cash provided by operating activities was $39,950,000. Cash used in investing and financing activities was $141,000 and $44,533,000, respectively.
European Wax Center had cash and cash equivalents of $48.0 million as of October 5, 2024.
The company identified a material weakness in its internal controls over financial reporting related to the valuation methodology for intangible assets.
The filing also discusses the company's growth strategy, highlighting plans to expand through new franchised centers and increase system-wide sales.
European Wax Center continues to focus on maintaining its brand position and ensuring consistent service delivery across its network of centers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the European Wax Center Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.