Reported figures in U.S. Dollars
MiniLuxe Reports Impressive 34% Year-Over-Year Revenue Growth Through Q3 2022
TORONTO, Nov. 22, 2022 (GLOBE NEWSWIRE) — MiniLuxe Holding Corp. (TSXV: MNLX) has proudly released its financial results for the 13-week period ending on September 25, 2022 (“Q3 2022”) and the 39-week period ending on the same date (“YTD Q3 2022”). MiniLuxe operates on a 52-week fiscal calendar that concludes on the Sunday closest to December 31, which occasionally leads to a 53-week fiscal year. All fiscal years mentioned in this announcement consist of 52-week periods, and the quarters discussed also follow a 13-week structure. Unless otherwise indicated, all figures are presented in U.S. dollars.
In this quarter, MiniLuxe has demonstrated remarkable momentum, continuing its journey to empower nail designers and beauty professionals as a contemporary class of creators and entrepreneurs. The company has successfully onboarded numerous nail designers onto its innovative, digitally-driven talent empowerment platform, achieving record staffing hours during this period. Furthermore, MiniLuxe has expanded its revenue channels for certified nail designers and beauty professionals, allowing them to provide self-care services. These service channels include company-owned studios, referred to as the “MiniLuxe fleet,” and off-premise locations like offices, homes, and hospitality venues, branded as “MiniLuxe Anywhere.” Additionally, nail designers and MiniLuxe-certified professionals act as ambassadors for the brand’s exclusive line of nail, hand, and body care products, showcasing their commitment to quality and self-care.
MiniLuxe has achieved an exceptional milestone in Q3 2022, reporting total revenue of $5.6 million, which marks an 18% increase compared to the same period in the previous year (Q3 2021). This significant organic growth within MiniLuxe’s core fleet business underscores the company’s trajectory toward establishing itself as the leading lifestyle brand for clean and ethical nail care and self-care services. Impressively, Q3 2022 revenues have surpassed those of Q3 2019 on a like-for-like studio basis, even amid ongoing staffing challenges in the market. MiniLuxe anticipates further growth as it continues to recruit talented designers who enhance the quality of services offered, including premium services and waxing/esthetics. Year-to-date (YTD) revenue through Q3 2022 totaled $15.5 million, reflecting a substantial 34% increase compared to the same timeframe last year (YTD Q3 2021). Additionally, gross profit rose by 11%, from $2.2 million in Q3 2021 to $2.5 million in Q3 2022, while YTD gross profit increased by 19%, from $5.8 million to $6.9 million. This growth illustrates the resilience and quality of the brand’s revenue, even in the face of challenging macroeconomic conditions such as labor shortages and inflation.
In Q3, MiniLuxe expanded its engagement with a diverse customer base, as evidenced by an 8% year-over-year growth in new customers compared to Q3 2021. The company is currently witnessing unprecedented levels of loyal repeat clients—those who visit MiniLuxe at least once a month. Year-to-date, there has been a notable increase in the share of high-margin premium services as part of the overall service offerings. With continued growth in the core business and a strategic investment in MiniLuxe products and the MiniLuxe Anywhere growth channels, the company aims to achieve cash flow-generative operations within the next 18 months.
“This quarter has shown strong performance despite the prevailing market and macroeconomic fluctuations. MiniLuxe takes pride in not only its growth but also the quality of that growth, characterized by increasing predictability, healthy gross margins, and diverse revenue streams. Our focus on fixed cost leverage, aligning SG&A expenses, and nurturing our loyal recurring client base will drive efforts to enhance gross margin contribution dollars and progress toward overall profitability,” stated Tony Tjan, Chairman and Co-founder of MiniLuxe.
“We are proud to announce continued double-digit year-over-year growth in Q3, as we see rising demand and positive staffing momentum. Our commitment to optimizing business operations and strategically allocating capital remains steadfast as we work toward profitability. As we approach the holiday season, we expect to end 2022 positively, with continuous dedication to our fleet and the strategic growth channels that will propel our business to the next level,” commented Zoe Krislock, CEO of MiniLuxe.
Q3 2022 Financial Achievements in USD
- Total revenue reached $5.6 million, reflecting an 18% year-over-year increase and 2% growth compared to the previous quarter.
- Gross profit stood at $2.5 million, an 11% increase from the prior year and consistent with the previous quarter’s performance.
- Fleet revenue in Q3 2022 was $5.4 million, demonstrating a 12% growth over Q3 2019 on a like-for-like studio basis (pre-COVID comparable).
- Fleet Adjusted EBITDA for Q3 2022 was $465K, up 42% from Q3 2021, which was $327K.
- Full Company Adjusted EBITDA1 stood at ($3.0 million) compared to ($1.5 million) for Q3 2021, primarily due to increased SG&A expenses aimed at driving growth initiatives focused on enhancing revenue quality and investment returns.
Year-to-Date Financial Highlights for Q3 2022 in USD
- Total revenue for the year reached $15.5 million, marking a 34% year-over-year increase.
- Gross profit for the year was $6.9 million, reflecting a 19% increase from the prior year.
- YTD Q3 2022 demonstrated growth surpassing YTD Q3 2019 levels, despite COVID-19 related demand issues arising from the Omicron variant. Fleet revenue totaled $15.1 million, a 10% increase compared to YTD Q3 2019 on a like-for-like studio basis (pre-COVID comparable).
- Fleet Adjusted EBITDA for the year-to-date through Q3 2022 stood at $1.04 million, representing an 81% increase from the same prior YTD period.
- Full Company Adjusted EBITDA2 was ($7.7 million) compared to ($4.6 million) for YTD Q3 2021, primarily due to increased SG&A expenses to support planned growth initiatives.
Key Business Developments in Q3 and YTD Q3 2022
- MiniLuxe has restructured its leadership team and organization to align better with long-term goals and current market dynamics, appointing Brian Moran as Chief Financial Officer, Elizabeth Lorber as Chief Commercial Officer, and Christine Chang as Chief of Business Development and Partnerships. Overall reductions in SG&A are anticipated to enhance fixed cost leverage benefits starting in Q4 2022/Q1 2023.
- Weekly appointment counts surged by 112% compared to Q3 2021, surpassing the previous year’s Q4 holiday season highs by 5%.
- The loyal client base, referred to as “Superfans,” has been growing quarter-over-quarter, now exceeding pre-pandemic levels from 2019, highlighting an increasing predictable and recurring revenue base within the core fleet business.
- Despite a challenging supply environment, MiniLuxe has successfully focused on talent acquisition and retention, resulting in a significant increase in fleet scheduled hours and peak day staffing hours, both of which grew by 6% compared to Q2 2022. These key performance indicators are essential as the company scales its staffing to meet holiday demand.
- The digital platform of MiniLuxe has extended its reach, with mobile app downloads surpassing 70K total, including nearly 5K in Q3 alone. The company launched the MiniLuxe Anywhere digital platform and service in Boston and Dallas, seamlessly connecting clients with designers to book and receive MiniLuxe services off-premises.
- MiniLuxe completed the acquisition of Paintbox and initiated the integration of the New York studio and Paintbox product line into its operations.
Financial Results for Q3 and YTD 2023
Selected Financial Metrics
MiniLuxe has implemented a change in accounting policy to more accurately represent revenue generated from talent and product revenue streams, aligning it more closely with management’s analysis of the company. This change has been applied retrospectively and does not affect the revenue recognition principles or the total overall revenue recognized.
| For Fiscal Quarter Ended | Year-over-Year Change | |||||||
| September 25, | September 26, | $ Change | % Change | |||||
| 2022 | 2021 | <u> </u> | ||||||
| Talent Revenue | $ 5,531,658 | $ 4,669,512 | $ 862,146 | 18% | ||||
| Product Revenue | 47,098 | 78,354 | (31,256) | -40% | ||||
| Total Revenue | $ 5,578,756 | $ 4,747,866 | $ 830,890 | 18% | ||||
| Gross Profit ($) | $ 2,486,843 | $ 2,242,322 | 244,521 | 11% | ||||
| Gross Margin (%) | 44.6% | <em> </em> | 47.2% | |||||
| For Fiscal Year-to-Date Ended | Year-over-Year Change | |||||||
| September 25, | September 26 | $ Change | % Change | |||||
| 2022 | 2021 | |||||||
| Talent Revenue | $ 15,306,888 | $ 11,273,864 | $ 4,033,024 | 36% | ||||
| Product Revenue | 164,887 | 248,253 | (83,366) | -34% | ||||
| Total Revenue | $ 15,471,775 | <strong
Sienna Blake
Sienna Blake is a licensed aesthetic consultant and beauty writer specializing in cosmetic surgery advancements and non-invasive treatments. With a background in dermatology and over eight years of industry experience, Sienna is passionate about helping people achieve confidence through informed beauty decisions. She holds a Bachelor's degree in Health Sciences and regularly collaborates with top plastic surgeons to stay at the forefront of aesthetic innovations. Outside of her work, Sienna enjoys traveling, skincare research, and practicing Pilates.
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