Warby Parker is inching closer to full profitability.
The eyewear maker reported a 13 percent year-over-year increase in revenue to $192 million in the third quarter of the year, keeping pace with its sales growth in the previous quarter. It also reduced its net losses, which accounts for all expenses, to $4 million, a nearly 80 percent decrease from a year earlier.
Warby Parker stuck to its formula of opening stores, where customer acquisition is cheaper than online ads. It opened 13 new locations this quarter and saw its active customers — or people who have purchased in a 12-month period — grow 6 percent to 2.4 million, the highest customer growth this year. The brand’s adjusted earnings before interest, taxes, depreciation and amortisation also jumped more than 50 percent year over year to $17 million. Retail now accounts for 70 percent of its overall sales, and the brand is on pace to open a total of 40 new stores this year.
On an earnings call on Thursday, Warby Parker’s executives discussed future business concerns, including higher tariffs during a second Trump administration. The company said it has reduced its reliance on China in the last five years, with the region now accounting for 20 percent of its cost of goods sold. The brand also teased an entrance into smart glasses, saying its spent the last decade chatting with tech companies and may bring styles to the market in the coming years.
Warby Parker raised its full-year revenue projections to as much as $768 million, from a previous expectation of $762 million. Still, its stock dropped around 1 percent in pre-market trading following its results.
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Warby Parker’s E-Commerce Returned to Growth in the Second Quarter
Warby Parker’s revenue grew 13 percent year over year to $188 million in the second quarter of 2024.
