Warby Parker on track to open 40 stores in 2023; Q2 revenue up 11%

Warby Parker Inc. continues to expand with new stores amid rising revenue and reduced costs.

The eyewear brand opened 13 new stores in its recently completed second quarter and remains on track to open 40 new stores this year. In a statement, co-founder and co-CEO Neil Blumenthal said the company has the potential to reach at least 900 locations over time. 

“Our stores are playing an increasingly important role in attracting new consumers to our brand and extending the reach and availability of our holistic vision offering,” added Blumenthal. “Equally important, our stores continue to generate strong margins and high returns on capital even as the optical industry has recently experienced demand headwinds.”

Warby Parker’s reported a net loss of $15.9 million for the quarter ended June 30, down from $32.2 million in the year-ago period.  Adjusted earnings before interest, taxes, depreciation and amortization increased to $14.2 million from $6 million.

Revenue increased 11% to $16.5 million. Average revenue per customer increased 9.2% to $277, and active customers increased 1.2% to 2.28 million.

Warby Parker’s selling, general and administrative expenses fell to 65.5% of revenue, down from 79.2% in the same period last year. The declines were attributed to lower stock-based compensation and reduced marketing costs. 

“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.”

Citing its better than anticipated results in the first half of 2023, Warby Parker raised its full year guidance. The retailer now expects annual revenues of $655 million to $664 million for growth of 9.5% to 11%, up from its previous estimate for growth of 8% to 10%.

“While growth for the broader optical industry remains slow, our proven ability to capture market share despite these difficult operating conditions gives us confidence,” said CFO Steve Miller.

Warby Parker operates 217 stores as of June 30.