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NEW YORK - On Thursday, Warby Parker Inc. (NYSE:WRBY) reported third-quarter earnings and revenue that missed analyst expectations, despite showing accelerated growth.
The direct-to-consumer eyewear retailer’s shares fell 5.77% in pre-market trading after the results.
The company reported adjusted earnings per share of $0.05 for the third quarter, falling short of the $0.08 analysts had expected. Revenue came in at $221.68 million, below the consensus estimate of $224.49 million, though it represented a 15.2% increase YoY. The company also lowered its full-year revenue outlook, now expecting $871-874 million compared to analyst expectations of $886 million.
Investors reacted negatively to the results, sending shares lower despite some positive metrics. The company reported that active customers increased 9.3% to 2.66 million on a trailing 12-month basis, while average revenue per customer rose 4.8% YoY to $320.
"This was a strong quarter for our team as we advanced our strategic priorities and accelerated both topline and customer growth," said Co-Founder and Co-CEO Neil Blumenthal. "As we step into Warby Parker ’s next act, one defined by innovation through AI, we’re energized to create new products like AI glasses, enhance the customer experience and drive productivity."
The company did show improved profitability, with adjusted EBITDA increasing by $8.4 million YoY to $25.7 million, representing an adjusted EBITDA margin of 11.6%, up 2.6 percentage points from the prior year.
"We meaningfully expanded profitability this quarter, reflecting the strength of our operational discipline and focus on sustainable growth," added Co-Founder and Co-CEO Dave Gilboa.
During the quarter, Warby Parker opened 15 net new stores, ending with 313 locations. The company remains on track to open 45 new stores in 2025, including five previously opened shop-in-shops at select Target locations.
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