The latest news on Warby Parker’s growth.
Nov. 29, 2023
Warby Parker announced in the release of its Third Quarter 2023 financial results that it had experienced its strongest revenue growth year-to-date at 14.2 percent.
“Fueling top-line results were 11 new store openings, four collection launches, contacts out-performance, and more. Customers continue to find exceptional value in our products, and we are focused on finding more ways to serve them through our growing and highly productive retail footprint, product innovation and broader holistic vision care services,” said Co-Founder and Co-CEO Neil Blumenthal.
Third Quarter 2023 Year-Over-Year Financial Results
- Net revenue increased $21.1 million, or 14.2 percent, to $169.8 million.
- Average revenue per customer increased 10.0 percent to $284. Active Customers increased 1.8 percent to 2.30 million.
- Gross profit increased 9.8 percent to $92.7 million.
- Gross margin was 54.6 percent compared to 56.7 percent in the prior year period: “The decline in gross margin was primarily driven by the growth of contact lenses, which carry lower gross margins than our other eyewear, increased costs associated with optometrists as we scale our eye exam offering across our fleet, and increases in store occupancy costs as a percent of revenue primarily due to increased depreciation and rent charges as we grew our store base to 227 stores, up from 190 in the prior year period.”
- Selling, general and administrative expenses (“SG&A”) were $112.5 million, up $4.4 million from the prior year, and represented 66.2 percent of revenue, down from 72.6 percent in the prior year period. Leverage in SG&A was primarily driven by reduced stock-based compensation costs and adjustments to Warby Parker’s cost structure made last year, partially offset by increased marketing costs and technology costs. Adjusted SG&A(1) was $93.4 million, or 55.0 percent of revenue, versus $82.3 million, or 55.3 percent of revenue in the prior year period.
- GAAP net loss improved $6.4 million to $17.4 million, primarily as a result of the increase in revenue described above.
- Adjusted EBITDA(1) decreased $0.9 million to $11.0 million and adjusted EBITDA margin(1) decreased 1.5 points to 6.5 percent.
- Opened 11 new stores during the quarter, ending Q3 with 227 stores.
2023 Outlook
For the full year 2023, Warby Parker is revising guidance to be as follows:
- Net revenue of $666 to $669 million, representing growth of approximately 11.5 percent at the midpoint versus full year 2022.
- Adjusted EBITDA(1) of approximately $52.7 million, or adjusted EBITDA margin of 7.9 percent.
- On track for 40 new store openings this year.
“While both our top and bottom line exceeded our prior outlook for the third quarter, we are cognizant of headwinds facing the consumer in the current macro environment,” said Chief Financial Officer Steve Miller. “Given our out-performance year-to-date, we are raising our full year revenue guidance and maintaining a disciplined approach to spend.”
