Warby Parker to open 40 stores in 2024; add more higher-priced frames
Warby Parker ended its second full year as a public company on an upbeat note amid an expanded partnership that’s expected to drive customer growth.
The eyeglass company reported a loss of $19 million for the quarter ended Dec. 31, down slightly from $20.3 million in the year-ago period.
Net revenue increased 10.5% to $161.9 million, topping estimates of $161 million. Average revenue per customer increased 9.3% to $287, and active customers increased 2.5% to 2.33 million.
Warby Parker opened 40 stores in 2023, ending the year with 237 stores. It expects to open another 40 locations in 2024.
“Our stores serve as billboards and act as efficient customer acquisition vehicles,” co-founder and co-CEO Dave Gilboa told analysts on the company’s earnings call. “To amplify our retail channel, we plan to allocate a portion of our media budget towards driving local store awareness and store traffic in a more intentional manner than in prior years.”
For the full year, Warby Parker’s net revenue rose 12.0%, to $669.8 million. Average revenue per customer increased 9.3% year over year to $287.
“2023 marked our second full year as a public company and one in which we executed on our commitment to growing sustainably, delivering double-digit revenue growth each quarter while improving margins and creating exceptional customer experiences,” said co-founder and co-CEO Neil Blumenthal.
On the call with analysts, Blumenthal said while the company continues to maintain and expand its core $95 price point, it will also expand its higher-priced offerings. It plans to to launch nearly 20 collections in 2024, many of which will feature its $145, $175 and $195 price points.
Partnership
In February 2024, Warby Parker expanded its relationship with Versant Health, a wholly-owned subsidiary of MetLife and one of the nation’s leading administrators of managed vision care. The expansion will bring an additional 15 million individuals in-network with Warby Parker, nearly doubling the number with in-network access to the brand to over 34 million. The company expects members under these plans to be able to access their in-network benefits later this year.
“Looking to 2024, we’re excited to meet millions of customers where and how they want to shop as we expand our retail presence, deploy disciplined marketing spend to support growth across our omnichannel experiences, and nearly double the number of insured lives who can use their in-network vision benefits with Warby Parker to over 34 million individuals,” stated Gilboa.
Warby Parker ended 2023 with $216.9 million in cash and cash equivalents. It also has entered into a new $120 million revolving credit facility.