The Business of Fashion
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Warby Parker’s revenue jumped 16 percent year over year to $200 million in the first quarter of the year as other brands in the sector struggle to grow sales. The eyewear seller expects full year sales to climb as much as 13 percent to $761 million in 2024.
Warby Parker’s main growth driver was its continued store openings, with eight new locations during the quarter and a total of 40 anticipated for 2024. That strategy has helped them keep customer acquisition costs low, which is a DTC brand’s typical hindrance for profit growth. Warby Parker reduced net losses by 75 percent to $2.7 million in the first quarter. Its adjusted earnings before interest, taxes, depreciation and amortisation grew 26 percent to $22 million.
But Warby Parker needs to improve growth of its active customers — people who have shopped at least once in a 12-month period. The company saw a 3.2 percent increase in this cohort in the first quarter, up from 2.6 percent in the same period last year, but down from 18 percent in 2022. The company’s operating costs grew 11 percent to $118 million as it ramps up advertising to find more shoppers. It also invested in more brand collaborations, including a limited edition collection of sunglasses with Caribbean inspired ready-to-wear label Theophilio in March, to reach new demographics.
The brand’s share price jumped as much as 18 percent in premarket trading following its earnings release.
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Editor's note: This article was updated on 9 May 2024. An original version misstated Warby Parker's operating costs as marketing operating costs.
