: Warby Parker reports surprise profit as revenue rises above forecasts and active customers increase

Warby Parker Inc. WRBY reported Wednesday a surprise adjusted profit and revenue that rose above forecasts, amid increases in both active customers and revenue per customer. The eyewear retailer’s stock was still inactive in the premarket. Net losses were halved to $15.9 million, or 14 cents a share, from $32.2 million, or 28 cents a share, in the year-ago period. Excluding nonrecurring items, the company swung to adjusted earnings per share of 4 cents from a per-share loss of 1 cent, while the FactSet consensus was for a loss of 2 cents. Revenue grew 11% to $166.1 million, above the FactSet consensus of $162.6 million, as active customers increased 1.2% to 2.28 million and average revenue per customer increased 9.2% to $277. Gross margin narrowed to 54.6% from 57.7% due primarily to increased sales of contact lenses, which carry lower gross margins than eyeglasses and an increase in employee salary and benefit costs. For 2023, the company raised its guidance range for revenue to $655 million to $664 million from $645 million to $660 million. The stock has rallied 18.6% over the past three months while the S&P 500 SPX has gained 9.3%.

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