MINILUXE ANNOUNCES STRONG RESULTS FROM RECENT HOLIDAY PERIOD AND FULL YEAR 2023 GROWTH

Initial results indicate a record-breaking holiday season for the Company, fueling another double-digit growth year for MiniLuxe. All figures are reported in US Dollars.

Boston, MA, Jan. 11, 2024 (GLOBE NEWSWIRE) —  MiniLuxe Holding Corp. (TSXV: MNLX) is pleased to announce preliminary topline results for the full-year 2023 and performance highlights from its 2023 Holiday Period (the Company defines the Holiday Period as the time from “US Black Friday” on November 24^th through New Year’s Eve, December 31^st 2023) and its Peak Holiday Period defined as the two weeks immediately preceding Christmas, December 25^th 2023.

While the Company is still completing the formal close of Q4 23, preliminary results indicate strong momentum at year-end with several same-store, year-over-year growth records and another consecutive quarter of record TTM (trailing twelve month) growth. Notably the growth came from volume of demand (i.e., client count versus price increases) and a higher mix of premium services (with higher gross profit).

The preliminary topline result for full year 2023 is just over ~$24.4M compared to $21.5M in 2022 and represents 14% YoY organic growth, coming principally from same-store sales growth (no M+A in 2023). The Company notes that 2022 was a 53-week year versus 2023 that had a standard 52-week year. Normalizing 2022 to a 52-week year results in a 16% YoY growth year. To provide a benchmark and as context, this is ~3x the retail sales growth rate projected for 2023 by the National Retail Federation.

An overarching goal for MiniLuxe in 2023 was to continue to optimize the unit economic performance of studios to a best-in-class level, setting the stage for future planned company-owned and franchised expansion. The Company also focused on the empowerment of its field talent and achieved its highest retention rate ever of ~85 percent for its hourly workforce team of nail designers and waxing specialists.

Other recent performance highlights included:

• Record-breaking single day and one-week sales: 15 of 21 operating studios achieved record-breaking best day sales or week of sales for their respective store unit.
• Best studio result: record sales in a studio was over $13,500 for single day sales and the best week of revenue for a studio was over $60,000 (~1600 square feet of studio space).
• Record TTM studio volume and sales per square foot: Two studios hit over $2M on a TTM (trailing twelve month) basis which translates to over $1300 of revenue per square foot.
• Momentum on newest product launch: Paintbox (sister brand acquired in August 2022) featured its Ready-to-Wear nail press ons through the holidays, offered for purchase in studios and online, and grew to approximately 10% of all product sales, indicating steady growth since its September 2023 launch.
• Loyal customer growth: MiniLuxe’s most loyal customer base (20+ visits / year) grew 13%.

“We are thrilled with the preliminary results for the holiday and recent period and I’m especially grateful for how the entire team rallied to create a strong finish to the year,” said Tony Tjan, CEO of MiniLuxe. “We are inspired to explore how high the high can be for a studio’s unit economics and continue to obsess on an elevated client experience and the empowerment of our talented nail designers and estheticians.”

The Company looks forward to providing the final full year report by its reporting and filing period date in April 2024.

About MiniLuxe

MiniLuxe, a Delaware corporation based in Boston, Massachusetts, is a lifestyle brand and talent empowerment platform servicing the beauty and self-care industry. The Company focuses on delivering high quality nail care and esthetic services and offers a suite of trusted proprietary products that are used in the Company’s owned and operated studios. For over a decade, MiniLuxe has been elevating industry standards through healthier, ultra-hygienic services, a modern design esthetic, socially responsible labor practices, and better-for-you, cleaner products. MiniLuxe aims to radically transform a highly fragmented and under regulated self-care and nail care industry through its brand, standards, and technology platform that collectively enable better talent and client experiences. For its clients, MiniLuxe offers best-in-class self-care services and better-for-you products, and for nail care and beauty professionals, MiniLuxe seeks to become the employer of choice. In addition to creating long-term durable economic returns for our stakeholders, the brand seeks to positively impact and empower one of the most diverse and largest hourly worker segments through professional development and certification, economic mobility, and company ownership opportunities (e.g., equity participation and future franchise opportunities). Since its inception, MiniLuxe has performed over 3.5 million services.

For further information

Christine Mastrangelo
Investor Relations, MiniLuxe Holding Corp.
cmastrangelo@miniluxe.com
miniluxe.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements

This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) concerning the Company and its subsidiaries within the meaning of applicable securities laws. Forward-looking information may relate to the future financial outlook and anticipated events or results of the Company and may include information regarding the Company’s financial position, business strategy, growth strategies, acquisition prospects and plans, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities or the markets in which the Company operates is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”, “budgets”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projects”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will” occur. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.

Many factors could cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking information, including, without limitation, those listed in the “Risk Factors” section of the Company’s filing statement dated November 9, 2021. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance, or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this press release.

Forward-looking information, by its nature, is based on the Company’s opinions, estimates and assumptions in light of management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company currently believes are appropriate and reasonable in the circumstances. Those factors should not be construed as exhaustive. Despite a careful process to prepare and review forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking information. Although the Company bases its forward-looking information on assumptions that it believes were reasonable when made, which include, but are not limited to, assumptions with respect to the Company’s future growth potential, results of operations, future prospects and opportunities, execution of the Company’s business strategy, there being no material variations in the current tax and regulatory environments, future levels of indebtedness and current economic conditions remaining unchanged, the Company cautions readers that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates may differ materially from the forward-looking statements contained in this press release. In addition, even if the Company’s results of operations, financial condition and liquidity, and the development of the industry in which it operates are consistent with the forward-looking information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.

Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date made (or as of the date they are otherwise stated to be made). Any forward-looking statement that is made in this press release speaks only as of the date of such statement.