MiniLuxe Financial Growth Report for the First Half of 2024
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MiniLuxe Reports Financial Results for 2024
Reported figures all in U.S. Dollars
MiniLuxe Holding Corp. (TSXV: MNLX) has announced remarkable financial results for the 13 and 26 weeks that ended June 30, 2024. The company operates on a 52-week fiscal year cycle ending on the Sunday closest to December 31. All amounts are reported in U.S. dollars unless specified otherwise.
Record Growth Achieved in 2024
MiniLuxe's first half of 2024 saw unprecedented growth across various metrics, particularly in revenue generation from Core Studios. When compared to the peak revenue levels of 2019, the average daily revenue from studios has surged by around 25%. Core Studios revenue for Q2 2024 has predominantly surpassed the same duration from Q2 2019 by 37%.
Strong Revenue and Profitability Trends
The company recorded a 9% increase in revenue for Q2 2024, with total revenue reaching $6.9 million, alongside a gross profit margin of $3.0 million, marking a 12% growth compared to Q2 2023. MiniLuxe is keen to highlight gross profit dollar growth as a crucial indicator of its trajectory towards long-term profitability, achieving a notably reduced operating loss of $1.5 million—representing a 43% reduction compared to the same quarter in 2023. Enhanced operational efficiency stemmed from a decrease in general administrative expenses, underlining significant strides in fixed-cost leverage.
Core Studio Performance
The majority of MiniLuxe's growth was recorded through its Core Studios, which saw a revenue increase of $0.45 million, bringing the total to $6.4 million—an 8% rise over Q2 2023. The company indicates encouraging trends on both the demand and supply sides of its operations:
Loyal Client Base Growth
MiniLuxe has successfully expanded its loyal customer base, now exceeding 10,000 clients, each averaging over 10 visits annually—a 10% year-on-year increase. The company's "super fans," those who frequent 20 or more times yearly, comprise 25% of total Talent Revenue, averaging an annual spend of approximately $2,000. Furthermore, client retention rates remain robust, with about 42% of clients in any given month being repeat customers.
Talent Development and Retention
MiniLuxe maintains over 80% annual retention for its hourly workforce, prioritizing ongoing growth and development within its Talent Ecosystem. The company fosters a safe and empowering work environment, offering rigorous training and competitive earnings. Over half of the team's members have been with MiniLuxe for more than five years and partake in the company’s equity ownership program.
Revenue and Gross Profit Growth
The synergy between a growing loyal clientele and the commitment to enhancing the quality and recruitment of staff has led to consistent year-over-year growth in same-store metrics and stable quarterly performance.
Subsequent Events
On May 3, 2024, MiniLuxe entered a majority-controlled joint venture with Sugarcoat, a regional nail services brand based in Atlanta, targeting further expansion and brand conversion. This initiative aims to transition an existing Sugarcoat salon to a MiniLuxe-branded studio while exploring additional opportunities for growth and partnerships.
According to Tony Tjan, the Chief Executive Officer and Co-founder of MiniLuxe, the market for nail care continues to thrive. The company remains committed to its strategic priorities that promise to enhance profitability while pursuing avenues for franchise expansion, mergers, and acquisitions.
About MiniLuxe
Based in Boston, Massachusetts, MiniLuxe is a lifestyle brand and talent empowerment platform specializing in beauty and self-care services. Focused on high-quality nail care and esthetic offerings, the company has spent over a decade raising industry standards through hygienic practices, modern design aesthetics, and robust professional development initiatives. MiniLuxe aims to transform the self-care industry through a technology platform designed to facilitate improved experiences for both talent and clients. The company has already performed over 4 million services and aims for continuous economic growth and empowerment for its workforce.
Contact Information
Christine Mastrangelo
Investor Relations, MiniLuxe Holding Corp.
cmastrangelo@MiniLuxe.com
MiniLuxe.com
Frequently Asked Questions
1. What was MiniLuxe's revenue for Q2 2024?
MiniLuxe reported a revenue of $6.9 million for the second quarter of 2024.
2. How does MiniLuxe define its loyal clients?
MiniLuxe defines its loyal clients as those who visit the studio over 10 times a year, with a notable segment being “super fans” who visit 20 or more times and collectively contribute a significant portion of revenue.
3. What operational changes led to improved profit margins in 2024?
Improved operational efficiency, notably through reduced general and administrative expenses, significantly contributed to enhanced profit margins and reduced operational losses.
4. What recent initiatives has MiniLuxe undertaken to expand its brand?
MiniLuxe initiated a joint venture with Sugarcoat to convert nail services locations into MiniLuxe-branded studios, with further expansion plans in mind.
5. What is MiniLuxe's approach to talent retention?
MiniLuxe emphasizes maintaining a supportive workplace, offering competitive earnings, and opportunities for equity ownership to foster a high retention rate among its employees.
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