Q1 2025 Warby Parker Inc Earnings Call Transcript
Key Points
- Warby Parker Inc (WRBY) reported a 12% year-over-year revenue growth, achieving its first quarter of positive GAAP net income as a public company.
- The company delivered an adjusted EBITDA margin of 13.1%, marking a nearly 200 basis points expansion from the previous year.
- Warby Parker Inc (WRBY) experienced seven consecutive quarters of accelerating active customer growth, with a focus on customer retention and high-value repeat purchasing.
- The company successfully launched seven new collections, including its first rimless collection, and introduced a premium light-responsive lens that exceeded expectations.
- Warby Parker Inc (WRBY) opened more stores in Q1 than in any prior first quarter, with plans to open 45 new stores in 2025, including shop-in-shops with Target.
- The company revised its revenue growth outlook for 2025 from 14%-16% to 13%-15%, citing a more conservative approach due to macroeconomic uncertainties.
- Warby Parker Inc (WRBY) faces potential gross margin impacts of 200 to 300 basis points for the full year 2025 due to increased tariffs.
- The company is experiencing dynamic consumer behavior and potential elongation in the purchase cycle due to economic volatility and low consumer confidence.
- Despite positive early signs, Warby Parker Inc (WRBY) remains underpenetrated in the insurance customer segment compared to the rest of the industry.
- The company anticipates a modest reduction in store productivity and a low to mid-single-digit growth in the e-commerce channel for the remainder of the year.
Hello and thank you for your patience. Today's Warby Parker first quarter 2025 earnings call will begin in just a few moments' time. Today's call will be hosted by Jaclyn Berkley, Vice President of Investor Relations (Operator Instructions)
Hello and welcome to today's Warby Parker first-quarter 2025 earnings call. My name is Bailey, and I will be your moderator for today. (Operator Instructions)
I'd now like to pass a conference over to Jaclyn Berkley, Vice President 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-CEOs; 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
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