Dive Brief:
- Warby Parker on Wednesday reported fourth-quarter net revenue increased 10.5% year over year to $161.9 million. Average revenue per customer grew 9.3% to $287, while its active customer base reached 2.33 million, an increase of 2.5%.
- The DTC eyeglass retailer narrowed its losses in the quarter: Operating loss was $21.6 million, down 0.6% from the year-ago period, and net loss was about $19 million, down 5.9%.
- For the full fiscal year, revenue increased 12% to $669.8 million. Operating loss decreased 35.3% to about $72 million, while net loss fell 42.8% to $63.2 million.
Dive Insight:
Warby Parker’s full-year revenue came in at the high-end of its guidance after posting double-digit growth each quarter in fiscal 2023.
The company opened 37 net new stores in 2023, 10 in the fourth quarter alone, for a total of 237 stores. The store expansion will continue in 2024 as the company on Wednesday outlined a number of strategic priorities for the year ahead, which includes opening 40 new stores as it looks to scale its omnichannel operations. The company continues to see potential for up to 900 stores in the future.
Other focus areas this year include driving brand awareness through increased marketing spend after years of spending pullback; expanding its core glasses business by launching nearly 20 collections and deepening its penetration of progressives mix; leaning into health care offerings by expanding its exam business and enhancing its telehealth and in-person vision experience; and returning its e-commerce business to growth.
To the latter point, Warby Parker’s fourth-quarter e-commerce revenue decreased 1% year over year, while its retail revenue increased 17.1%, Chief Financial Officer Steve Miller said on a call with analysts Wednesday. For the full year, e-commerce revenue fell 3.1% and retail revenue grew 21.7%. The company said the e-commerce decline was largely due to a pullback in marketing spend in the first half of the year.
For the year ahead, Warby Parker projects net revenue to be between $748 million and $758 million, representing year-over-year growth of 12% to 13%.
