EWCZ Stock Forecast & Price Target

European Wax Center Inc. demonstrated a positive operational performance with its SG&A expenses as a percentage of total revenue improving to 28.5%, exceeding consensus expectations and indicating effective cost management. The company's gross margin also showed resilience, expanding 50 basis points year-over-year to 32.9%, driven by optimized promotional events and strategic marketing adjustments. Additionally, the partnership with Dolabra Digital is anticipated to enhance guest acquisition and engagement, ultimately supporting topline growth and margin improvements in the future.

European Wax Center Inc. has faced notable challenges, with net sales declining by 9.4% year-over-year to $5.397 billion in the fourth quarter, reflecting a deterioration in revenue prospects. The company's adjusted EBITDA margin has also contracted by 220 basis points, highlighting the pressures on profitability, despite slightly better performance than initial estimates. Furthermore, management has indicated that mature centers are likely to continue seeing transaction declines, with guest engagement efforts expected to yield results only after 2026, further complicating the outlook for recovery.