We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EWCZ Marketing Shift Shows Early Wins: Can Growth Reignite Fast?
Read MoreHide Full Article
Key Takeaways
EWCZ adopted a new advertising platform in Q1 FY25, improving new guest trends versus two years ago.
Enhanced measurement tools now tie media exposure to in-center actions, lowering acquisition costs.
Franchisee integration and seasonal campaigns aim to accelerate traffic and guest visits in 2025.
European Wax Center, Inc. (EWCZ - Free Report) has made a decisive pivot to revamp its marketing engine and early signs point to meaningful traction. After implementing a modern advertising effectiveness platform in the first quarter of fiscal 2025, EWCZ reported sequential improvements in new guest trends compared with the same period two years ago. While the lift remains modest, this directional movement is critical for a brand that has struggled to grow traffic in recent quarters.
At the core of this transformation is a push toward data-driven, digital-first marketing. With upgraded measurement tools now in place, EWCZ is able to link media impressions to in-center behavior, enabling smarter allocation of marketing dollars and a lower cost per acquisition. Creative and messaging tests are underway, with initial feedback suggesting the brand’s updated identity is resonating, especially among higher-value, more loyal guest segments.
This effort goes beyond surface-level branding. Marketing execution is being tightly integrated with franchisee operations through new support tools, enhanced guest communication platforms like email and SMS, and the planned launch of a champion ad campaign during the peak summer season. These coordinated efforts aim to strengthen traffic recovery and unlock additional guest visits. While the initiative is still in early stages, management is confident that the company is gaining momentum and its sharpened marketing engine will drive meaningful traffic and sales growth in the second half of 2025.
How EWCZ Compares in Marketing Efficiency
Coty Inc. (COTY - Free Report) continues to evolve its marketing strategy by shifting resources toward high-ROI categories like mass fragrances while scaling back in lower-return color cosmetics. In the third quarter of fiscal 2025, Coty emphasized influencer-driven content and campaigns, such as its viral Rimmel UK push, to optimize digital reach with lower spend. However, inconsistent category demand and global channel fragmentation are still impacting Coty’s campaign efficiency.
Another peer, Helen of Troy Limited (HELE - Free Report) , is focusing on simplifying its marketing execution and prioritizing investments that deliver the highest returns. Helen of Troy is refining its paid media funnel, driving more earned media and reducing content costs across brands like Drybar and Curlsmith. In the first quarter of fiscal 2026, Helen of Troy reported traction in influencer-backed launches and direct-to-consumer growth, but tariff disruptions and pricing pressure continue to weigh on media performance.
EWCZ’s Price Performance, Valuation & Estimates
Shares of European Wax Center have gained 64.6% in the past three months compared with the industry’s growth of 50.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, EWCZ trades at a forward price-to-earnings ratio of 8.61X, below the industry’s average of 27.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EWCZ’s fiscal 2025 and 2026 earnings implies year-over-year growth of 35.6% and 8.2%, respectively.
Image: Bigstock
EWCZ Marketing Shift Shows Early Wins: Can Growth Reignite Fast?
Key Takeaways
European Wax Center, Inc. (EWCZ - Free Report) has made a decisive pivot to revamp its marketing engine and early signs point to meaningful traction. After implementing a modern advertising effectiveness platform in the first quarter of fiscal 2025, EWCZ reported sequential improvements in new guest trends compared with the same period two years ago. While the lift remains modest, this directional movement is critical for a brand that has struggled to grow traffic in recent quarters.
At the core of this transformation is a push toward data-driven, digital-first marketing. With upgraded measurement tools now in place, EWCZ is able to link media impressions to in-center behavior, enabling smarter allocation of marketing dollars and a lower cost per acquisition. Creative and messaging tests are underway, with initial feedback suggesting the brand’s updated identity is resonating, especially among higher-value, more loyal guest segments.
This effort goes beyond surface-level branding. Marketing execution is being tightly integrated with franchisee operations through new support tools, enhanced guest communication platforms like email and SMS, and the planned launch of a champion ad campaign during the peak summer season. These coordinated efforts aim to strengthen traffic recovery and unlock additional guest visits. While the initiative is still in early stages, management is confident that the company is gaining momentum and its sharpened marketing engine will drive meaningful traffic and sales growth in the second half of 2025.
How EWCZ Compares in Marketing Efficiency
Coty Inc. (COTY - Free Report) continues to evolve its marketing strategy by shifting resources toward high-ROI categories like mass fragrances while scaling back in lower-return color cosmetics. In the third quarter of fiscal 2025, Coty emphasized influencer-driven content and campaigns, such as its viral Rimmel UK push, to optimize digital reach with lower spend. However, inconsistent category demand and global channel fragmentation are still impacting Coty’s campaign efficiency.
Another peer, Helen of Troy Limited (HELE - Free Report) , is focusing on simplifying its marketing execution and prioritizing investments that deliver the highest returns. Helen of Troy is refining its paid media funnel, driving more earned media and reducing content costs across brands like Drybar and Curlsmith. In the first quarter of fiscal 2026, Helen of Troy reported traction in influencer-backed launches and direct-to-consumer growth, but tariff disruptions and pricing pressure continue to weigh on media performance.
EWCZ’s Price Performance, Valuation & Estimates
Shares of European Wax Center have gained 64.6% in the past three months compared with the industry’s growth of 50.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, EWCZ trades at a forward price-to-earnings ratio of 8.61X, below the industry’s average of 27.7X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EWCZ’s fiscal 2025 and 2026 earnings implies year-over-year growth of 35.6% and 8.2%, respectively.
Image Source: Zacks Investment Research
European Wax Center currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.