Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at European Wax Center (NASDAQ: EWCZ) and its peers.
Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.
The 11 leisure facilities stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Luckily, leisure facilities stocks have performed well with share prices up 23% on average since the latest earnings results.
European Wax Center (NASDAQ: EWCZ)
Founded by two siblings, European Wax Center (NASDAQ: EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.
European Wax Center reported revenues of $51.43 million, flat year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Chris Morris, Chairman and CEO of European Wax Center, Inc. stated, “During the first quarter, we made meaningful progress against our strategic priorities and delivered solid financial performance, enabling us to reiterate our full-year outlook. We continue to advance our enhanced, data-rich marketing engine, and guest research is generating valuable insights that will shape our traffic-driving strategies. We're also strengthening our corporate infrastructure to better support franchisees through enhanced tools, resources and action plans, all while maintaining our focus on long-term network health and our goal of achieving net unit growth by the end of 2026.”
European Wax Center scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 26.4% since reporting and currently trades at $4.98.
Is now the time to buy European Wax Center? Access our full analysis of the earnings results here, it’s free.
Best Q1: Live Nation (NYSE: LYV)
Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Live Nation reported revenues of $3.38 billion, down 11% year on year, falling short of analysts’ expectations by 2.8%. However, the business still had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 17.4% since reporting. It currently trades at $154.
Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Lucky Strike (NYSE: LUCK)
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Lucky Strike reported revenues of $339.9 million, flat year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 18.1% since the results and currently trades at $11.24.
Read our full analysis of Lucky Strike’s results here.
Xponential Fitness (NYSE: XPOF)
Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.
Xponential Fitness reported revenues of $76.88 million, down 3.5% year on year. This print surpassed analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Xponential Fitness achieved the highest full-year guidance raise among its peers. The stock is up 24% since reporting and currently trades at $10.81.
Read our full, actionable report on Xponential Fitness here, it’s free.
Planet Fitness (NYSE: PLNT)
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $276.7 million, up 11.5% year on year. This result came in 1.2% below analysts' expectations. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.
Planet Fitness delivered the fastest revenue growth among its peers. The stock is up 11.3% since reporting and currently trades at $113.23.
Read our full, actionable report on Planet Fitness here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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