Warby Parker ( NYSE: WRBY ) gained in early trading on Tuesday after posting a largely in-line Q4 earnings report .
The eyeglasses retailer reported active customers increased 3.6% year-over-year during the quarter to 2.28M. Average revenue per customer was up 6.9%.
Gross margin fell to 55.1% of sales vs. 57.4% a year ago. The decline was primarily driven by an increase in salary and benefit costs associated with optometrists as the company scaled its eye exam offering to 150 exam locations from 102 in the prior year period. The impact of the growth in the company's store count drove higher store occupancy and depreciation costs, and the increased penetration of contact lenses, which carry lower gross margins than eyeglasses, also cut into margins during the quarter
WRBY's adjusted EBITDA margin of 6.9% in Q4 was a dramatic improvement from the 2.2% mark for the first half of 2022.
Looking ahead, Warby Parker ( WRBY ) expects revenue to be up 8% to 10% to $645M to $660M in FY23 vs. $666.7M consensus. Adjusted EBITDA is expected to come in at $51.5M vs. $49M consensus.
CFO update: "Our 2023 outlook reflects our team’s commitment to maintaining discipline across the topline and bottom line while continuing to invest in our omnichannel business model, for example by opening 40 new stores. As we work to capture greater market share while providing vision for all, we’re as committed as ever to delivering value to shareholders."
Shares of Warby Parker ( WRBY ) rose 2.91% premarket to $13.45 on light volume.
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Warby Parker gains after investors latch on to guidance, store growth