Warby Parker plunges back into the red, revenues continue to grow
Eyewear company Warby Parker announced on Monday revenues for the first quarter increased by more than 10%, as the U.S. firm continues to expand its retail network, despite profits swinging back to red.
The New York-based company said net revenues for the first quarter ending March 31 lifted 10.3% to $153.2 million. First quarter revenue was negatively impacted by approximately $15 million in estimated lost sales due to the omicron variant, with disruption heightened in the last weeks of December and continuing into the first quarter, the company added.
However, the company managed to record an increase in active customers by 18% to 2.23 million year over year, while average revenue per customer increased 11.2% year-over-year to $249.
Warby Parker opened eight new stores during the first quarter, ending the quarter with 169 stores.
"Our team has a lot to be proud of this quarter,” said co-founder and co-CEO Dave Gilboa.
“We opened eight new retail stores, expanded our eye exam capacity, launched four new eyewear collections, scaled our vertically-integrated supply chain, and continued to deliver above-and-beyond experiences to our customers, who are spending more with us than ever before.”
Despite the sales uptick, the company said earnings dipped $37.1 million to a loss of $34.1 million, primarily as a result of an increase in selling, general and administrative expenses, which increased $42.6 million to $123.4 million, primarily driven by an increase of $25.9 million in stock-based compensation expense and related employer payroll taxes.
“Despite a challenging macroeconomic backdrop, we continue to grow faster than others in our industry," added co-founder and co-CEO Neil Blumenthal.
"We believe our omnichannel business model, compelling value proposition, and strong consumer brand uniquely position us to capture market share for years to come in both good and turbulent environments."
Looking ahead, the company forecast 2022 net revenue of $650 to $660 million, representing growth of 20% to 22% versus full year 2021. It also plans to open 40 new stores this year.
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