: Warby Parker beats revenue expectations and boosts full-year outlook as contact lens sales outperform

Warby Parker Inc. WRBY reported Wednesday third-quarter revenue that rose above expectations and raised its full-year outlook, amid outperformance in contact lens sales and as average revenue per customer increased. The eyewear retailer’s stock was still inactive in the premarket. Net losses narrowed to $17.4 million, or 15 cents a share, from $23.8 million, or 21 cents a share, in the year-ago period. Excluding nonrecurring items, earnings per share of 1 cent was flat with last year and matched the FactSet consensus. Revenue grew 14.2% to $169.8 million, above the FactSet consensus of $164.7 million, while average revenue per customer increased 10% to $284 and active customer rose 1.8% to 2.30 million. Gross margin contracted to 54.6% from 56.7%, due primarily to the growth of contact lenses, which carry lower margins than other eyewear. For 2023, the company raised its guidance range for revenue to $666 million to $669 million from $655 million to $664 million. The stock has slipped 0.6% over the past three months while the S&P 500 WRBY has lost 2.7%.

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