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Warby Parker (NYSE:WRBY) reported revenue rose 11.0% in Q2 to $166.1M to top the consensus estimate of $162.5M. Average revenue per customer increased 9.2% to $277. The total number of active customers increased 1.2% to 2.28M.
Adjusted EBITDA increased to $14.2M from $6.0M a year ago and WRBY’s adjusted EBITDA margin improved 4.5 points to 8.5% from 4.0%. Gross margin was 54.6% compared to 57.7% a year ago. The decline in gross margin was primarily driven by the increased penetration of contact lenses, which carry lower gross margins than eyeglasses; an increase in salary and benefit costs associated with optometrists as WRBY scaled its eye exam offering across its fleet; and the impact of the growth in store count driving higher store occupancy and depreciation costs.
On the balance sheet, Warby Parker (WRBY) ended the quarter with a cash position of $212.7M.
“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,” noted added Co-Founder and Co-CEO Neil 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,” he added. Warby Parker (WRBY) opened 13 new stores in Q2, and remains on track to open 40 new stores this year. The company believes it has the potential to reach at least 900 locations over time.
Looking ahead, Warby Parker (WRBY) guided for full-year revenue of $655M to $664M vs. a prior outlook for $645M to $660M and the consensus estimate of $659M.
Shares of Warby Parker (WRBY) jumped 4.59% in premarket trading on Wednesday.