NEW YORK - Warby Parker Inc. (NYSE: WRBY), a lifestyle brand focused on vision care, reported a fourth-quarter earnings miss, with an adjusted EPS of -$0.01, falling short of the analyst consensus of $0.01. Following the earnings announcement, the stock fell 10.24% in premarket trading.
Despite the earnings miss, the company's revenue for the quarter slightly exceeded expectations, coming in at $161.9 million against the consensus estimate of $160.9 million.
The company's full-year 2023 net revenue saw a 12.0% increase to $669.8 million compared to the previous year, with average revenue per customer growing by 9.3% to $287. Warby Parker also reported a GAAP net loss of $63.2 million for the year.
The fourth-quarter GAAP net loss showed a slight improvement to $19.0 million, primarily due to an increase in gross profit, which was partially offset by increased selling, general, and administrative expenses (SG&A).
The decrease in gross margin was attributed to the growth of contact lens sales, which have a lower margin compared to glasses, increased doctor salaries, and higher store occupancy costs as the company expanded its store base. However, these impacts were mitigated by increased penetration of progressive lenses, efficiencies in owned labs, and reduced outbound shipping costs.
For the full year 2024, Warby Parker has provided revenue guidance in the range of $748 to $758 million, representing approximately 12% to 13% growth compared to 2023. The midpoint of this guidance is slightly below the analyst consensus of $751.3 million. The company also plans to open 40 new stores in the coming year.
Chief Financial Officer Steve Miller commented on the results, highlighting Warby Parker's brand strength and disciplined cost management. He expressed the leadership team's focus on delivering strong top-line and bottom-line results that reflect the company's strategic vision as a holistic vision care company.
Following the earnings announcement, Warby Parker's stock experienced a marginal decline of 0.33%, indicating a relatively muted investor reaction to the earnings miss and the guidance provided.
The company's expansion of its relationship with Versant Health, Inc. is expected to nearly double the number of insured lives with in-network access to Warby Parker's services to over 34 million individuals, a move that could potentially drive future growth.
Warby Parker's commitment to social responsibility was evident as the company distributed over 15 million pairs of glasses to people in need through its Buy a Pair, Give a Pair program. Co-Founder and Co-CEO Neil Blumenthal emphasized the company's sustainable growth and margin improvement over the year, while Co-Founder and Co-CEO Dave Gilboa looked forward to expanding Warby Parker's retail presence and omnichannel experiences in 2024.
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