Warby Parker

Warby Parker’s Profits Grow in Second Quarter

The Eyewear Manufacturer Witnessed An 11 Percent Increase In Second Quarter

Warby Parker Inc. is strategically expanding its retail footprint while maintaining a focus on cost management as it experiences growth in its business operations.

Neil Blumenthal, co-founder, and co-chief executive officer of Warby Parker, highlighted the significance of their stores in attracting new customers and enhancing their comprehensive vision offerings. He emphasized that despite challenges in the optical industry’s demand, their stores have been contributing to strong margins and robust capital returns. In the second quarter, Warby Parker launched 13 new stores and remains on track to open a total of 40 new locations in the current year, with ambitions of potentially reaching 900 stores in the long term. The company currently operates 217 stores.

For the quarter ending on June 30, the company’s net losses narrowed from $32.2 million to $15.9 million, largely attributed to reduced selling, general, and administrative expenses as a percentage of revenue. This was primarily driven by lower stock-based compensation and decreased marketing costs. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased from $6 million to $14.2 million.

Co-founder and co-CEO Dave Gilboa emphasized the company’s focus on achieving profitability while also investing in long-term market share gains. The efforts to realign their expense structure have enabled them to strike a balance between improving profitability and reinvesting in their business.

Warby Parker co-founders Dave Gilboa (left) and Neil Blumenthal

Based on the positive momentum, Warby Parker revised its full-year outlook. The company now expects annual revenues in the range of $655 million to $664 million, representing a growth of 9.5 percent to 11 percent, up from the previous outlook of 8 percent to 10 percent growth. Adjusted EBITDA is projected to reach $52 million, an increase from the previous projection of $51.5 million.

Investors responded favorably to the news, driving a 6 percent increase in the company’s shares to $15.25 during premarket trading.