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Stock impact report

Why European Wax Center (EWCZ) Stock Is Down Today [Yahoo! Finance]

European Wax Center, Inc. - Class A (EWCZ) 
Company Research Source: Yahoo! Finance
after the stock's negative momentum continued as the company reported third-quarter results that showed declining year-over-year revenue and a net reduction in its store count, signaling underlying business weakness. Although the company's revenue of $54.2 million and its profit of $0.09 per share beat Wall Street's expectations, total revenue still fell by 2.2% compared to the same period in the previous year. The decline was partly attributed to a net decrease in its locations, as franchisees closed nine centers while opening only three. The company also projected a net loss of 23 to 28 centers for the full fiscal year. Furthermore, system-wide sales saw a slight decline of 0.8%, and the company noted it faced challenges in attracting new customers. While European Wax Center reaffirmed its full-year financial guidance, the negative trends in sales and its physical footprint appeared to weigh on investor sentiment. The stock market overreacts to news, and big price drops can pres Show less Read more
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