By Warby Parker Inc. (WRBY, +3.40%) announced its third-quarter earnings on Wednesday, revealing revenue that surpassed expectations and prompting the company to raise its full-year outlook. This impressive result was driven by strong sales in contact lenses and an increase in average revenue per customer.
Financial Highlights
- Net losses narrowed to $17.4 million, or 15 cents a share, compared to $23.8 million, or 21 cents a share, in the same period last year.
- Excluding nonrecurring items, earnings per share of 1 cent was consistent with last year and in line with the FactSet consensus.
- Revenue grew by 14.2% to $169.8 million, surpassing the FactSet consensus of $164.7 million.
- Average revenue per customer rose by 10% to $284.
- Active customers increased by 1.8% to reach 2.30 million.
Strong Performance in Contact Lens Sales
The growth in revenue can be attributed to the success of contact lens sales, although it did contribute to a contraction in gross margin. This is mainly due to contact lenses having lower profit margins compared to other eyewear products.
Positive Outlook for 2023
Warby Parker has revised its guidance range for the full year 2023 revenue. The new range is now set at $666 million to $669 million, up from the previous range of $655 million to $664 million.
Stock Performance
In the past three months, Warby Parker’s stock has only declined by 0.6%, outperforming the S&P 500 WRBY (+3.40%), which experienced a loss of 2.7%.
Overall, these exceptional financial results demonstrate Warby Parker’s ability to thrive in a competitive market and indicate a promising future for the company.
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