MINILUXE REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024

Reported figures all in U.S. Dollars

Announces Continued, Consistent Revenue Growth with Increasing Fixed Cost Leverage

Boston, MA, May 20, 2024 (GLOBE NEWSWIRE) -- MiniLuxe Holding Corp. (TSXV: MNLX) today announced its financial results for the 13 weeks ended March 31, 2024 (“Q1 2024”). The fiscal year of MiniLuxe is a 52-week reporting cycle ending on the Sunday closest to December 31, which periodically necessitates a fiscal year of 53 weeks; fiscal years referred to in this release consist of 52-week periods. Unless otherwise specified, all amounts are reported in U.S. dollars.

MiniLuxe continued its consistent, organic, year-over-year growth as Q1 2024 revenue increased 8% over Q1 2023 at $5.6M with gross profit of $2.3M, a 2% increase from Q1 2023. The Company views gross profit dollar growth as a key indicator of MiniLuxe’s positive trajectory towards long-term profitability and, in conjunction with the reduced cost base, moved materially to a narrowing loss rate. Miniluxe used its lightest volume quarter (Q1 is historically the lowest revenue volume due to seasonality) as an opportunity to test new service initiatives focused primarily on premium nails and waxing services. These initiatives have the impact of temporarily reducing topline revenue and gross margins, but are designed to accelerate adoption of MiniLuxe’s premium service offerings. Management plans to continue to experiment with service offering enhancements and other tests in order to continue to provide the most relevant self-care experience on the market while remaining committed to our mission of clean and empowerment of the designer. Q1 2024 operating loss was ($1.8M), representing $1.2M (or 40%) lower than Q1 2023, which was driven by reduced general and administrative expenses.

As in past periods, the majority of the Company’s growth came organically from the MiniLuxe Core Studios. The Core Studio base continued its consistent, multi-year trend of growth in Q1 2024 as revenue increased $0.2M to $5.1M, or 5% over Q1 2023. MiniLuxe also saw good trends on the demand and supply side of its business: (a) positive momentum on the demand side (new client and loyal client growth) and (b) growth and development of supply side (talent ecosystem growth). The Company focuses on growth in loyal client base, growth in designer talent base, and increasing studio AUV (average unit volume by revenue) as three pillars that demonstrate the strengthening brand resiliency and high demand for MiniLuxe in-studio service offerings.