Eyewear company Warby Parker announced on Wednesday revenues for the third quarter increased by more than 14%.
The New York-based company said net revenues for the quarter ended September 30, 2023 increased $21.1 million to $169.8 million. The company managed to record an increase in active customers by 1.8% to 2.30 million, while average revenue per customer increased 10% to $284.
The company opened 11 new stores during the quarter, ending Q3 with a total of 227 stores, showcasing its commitment to expanding its retail footprint.
“In Q3, we were proud to deliver our strongest revenue growth year-to-date at 14.2%,” said co-founder and co-CEO Neil Blumenthal. “Fueling topline results were 11 new store openings, four collection launches, contacts outperformance, 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.”
Despite strong growth in revenue and active customers, the company reported a GAAP net loss of $17.4 million. Gross profit increased by 9.8% to $92.7 million, with a gross margin of 54.6%, slightly down from 56.7% in the prior year period. This decline in gross margin was attributed to the growth of contact lenses, which have lower gross margins compared to other eyewear.
Looking ahead, Warby Parker forecast 2023 net revenue of $666 to $669 million, representing growth of 11.5% at the midpoint versus full year 2022. It also remains on track to open 40 new stores 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 outperformance year-to-date, we are raising our full year revenue guidance and maintaining a disciplined approach to spend.”
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