Q3 2024 Warby Parker Inc Earnings Call Transcript
Key Points
- Warby Parker Inc (WRBY) reported Q3 net revenue of $192.4 million, marking a 13.3% year-over-year growth, surpassing their guidance.
- The company experienced its highest active customer growth of the year, ending Q3 with 2.4 million active customers, a 5.6% increase on a trailing 12-month basis.
- Retail revenue increased by approximately 20% year-over-year, driven by new store growth and consistent performance within existing stores.
- Warby Parker Inc (WRBY) raised its full-year guidance, now expecting 14% to 15% revenue growth and approximately $73 million in adjusted EBITDA.
- The company continues to see positive momentum in its glasses business, with glasses sales growing approximately 10% year-over-year in Q3.
- E-commerce revenue only increased by approximately 1% year-over-year, reflecting challenges in the channel despite overall positive momentum.
- Gross margin slightly decreased by 13 basis points year-over-year to 54.6%, impacted by increased occupancy expenses and strategic investments in optometrists.
- The company faces ongoing challenges with tariffs, as approximately 20% of its cost of goods sold is still sourced from China.
- Despite strong growth in contact lens sales, they remain below the industry average, representing only 11% of revenue compared to the 20% industry average.
- Warby Parker Inc (WRBY) continues to experience lower gross margins in its contact lenses and eye exams segments, which, while accretive to gross profit dollars, have a lower margin profile than eyeglasses.
Hello and welcome to today's Warby Parker third quarter, 2024 earnings call. My name is Bailey and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.
(Operator Instructions)
I'd now like to pass the conference over to our host today. Jaclyn Berkley, Head of Investor Relations. Please go ahead when you're ready.
Thank you and good morning, everyone. Here with me today are Neil Blumenthal and Dave Gilboa, our co-founders and Co-CEO's alongside Steve Miller, senior Vice President and Chief Financial Officer.
Before we begin, we have a couple of reminders our earnings release and slide presentation are available on our website at investors.warbyparker.com.
During this call. And in our presentation, we will be making comments of a forward-looking nature actual results may differ materially from those expressed or implied as a result of various risks and
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