Eyewear retailer Warby Parker has raised its full year outlook after reporting double-digit revenue growth for the second quarter ended June 30.
The company’s net revenue was up 11 per cent year over year to $166.1 million, while average spend per customer increased 9.2 per cent.
Adjusted EBITDA rose $8.2 million to $14.2 million, and gross profit increased 5.0 per cent to $90.6 million.
Gross margin was 54.6 per cent compared to 57.7 percent in the second quarter of last year.
The company opened 13 new stores in the quarter and is on track to reach 40 new locations this year.
For the gull year 2023 guidance, Warby Parker expects a net revenue of $655 to $664 million, a 9.5 to 11 per cent growth versus 2022.
“We delivered another quarter of double-digit revenue growth and strong adjusted EBITDA margin expansion,” said co-founder and co-CEO Dave Gilboa.
“The work we’ve done realigning our expense structure is enabling us to balance improving profitability with reinvesting in the business to drive sustained market share gains long term.”
“Our stores continue to generate strong margins and high returns on capital even as the optical industry has recently experienced demand headwinds,” added co-founder and co-CEO Neil Blumenthal.
While the longer term is favourable, Neil Saunders, MD of GlobalData, stated this will be a year of more modest progress for the company.
Despite the opening of new stores, the company only achieved a 1.2 percent increase in active customers.
“Economic pressures are weighing down consumers and this means some previously active customers are dropping off the radar as they curtail various eyewear purchases.”
The new stores, however, have helped support the increase in average spend per customer, as they all offer eye exams, creating a new revenue stream from eye exam fees and driving sales of more expensive eyewear lenses and contact lens subscriptions.
“Pleasingly, Warby Parker has increased its guidance for the full fiscal. This is modest progress and perhaps is an initial sign that the company’s various investments are starting to gain more traction.”
