As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure facilities industry, including 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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 1.6% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.6% 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 $49.74 million, down 11.7% year on year. This print fell short of analysts’ expectations by 5%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.
Chris Morris, Chairman and CEO of European Wax Center, Inc. stated, “We ended fiscal 2024 on a solid note, delivering fourth quarter results in line with our expectations thanks to the loyalty of our core guests and strong semiannual Wax Pass promotional period. In my first nine weeks as CEO, I have immersed myself in the business by engaging with our key stakeholders. We have a unique and powerful business model underpinned by talented associates and passionate franchisees who continue to voice their commitment to our long-term growth potential. As a result, I am even more optimistic about the future for European Wax Center.”
European Wax Center delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 16.8% since reporting and currently trades at $4.26.
Read our full report on European Wax Center here, it’s free.
Best Q4: 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 $5.68 billion, down 2.4% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.3% since reporting. It currently trades at $126.02.
Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $83.22 million, down 6.8% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations.
Xponential Fitness delivered the weakest full-year guidance update in the group. As expected, the stock is down 32.5% since the results and currently trades at $8.22.
Read our full analysis of Xponential Fitness’s results here.
Bowlero (NYSE: BOWL)
Operating over 300 locations globally, Bowlero (NYSE: BOWL) is a contemporary bowling company merging classic lanes with entertainment and deluxe food offerings.
Bowlero reported revenues of $300.1 million, down 1.8% year on year. This number lagged analysts' expectations by 4.9%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $11.80.
Read our full, actionable report on Bowlero here, it’s free.
United Parks & Resorts (NYSE: PRKS)
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
United Parks & Resorts reported revenues of $384.4 million, down 1.2% year on year. This print surpassed analysts’ expectations by 1%. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ EPS and adjusted operating income estimates.
The stock is down 6.3% since reporting and currently trades at $51.17.
Read our full, actionable report on United Parks & Resorts here, it’s free.
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