A general view of the atmosphere in the Warby Parker store at The Standard, Hollywood
Michael Buckner | Warby Parker | Getty Images
Warby Parker on Thursday joined a host of retailers that cut their financial forecasts for the year, despite reporting a smaller-than-expected fiscal second-quarter loss and sales in line with analysts’ estimates.
Chief Financial Officer Steve Miller said the eyewear maker faced an “uncertain macroeconomic environment”.
“We are taking a disciplined approach to cost management to prepare for sustainable growth and profitability,” he said in a statement.
As part of its efforts to cut costs, Warby cut 63 jobs, representing about 2% of its total employee base and 15% of corporate positions, a spokesperson confirmed to CNBC.
Retailers including Walmart, Best Buy, Gap and Allbirds have cut their sales or profit expectations in recent weeks as they begin to see consumers cut back on spending on discretionary items such as clothing and electronics amid rising inflation. At the same time, however, luxury brands such as Ralph Lauren and Versace owner Capri Holdings say people are still spending money on expensive shoes and bags.
Shares of Warby rose less than 1 percent in extended trading. As of Wednesday’s market close, shares have tumbled nearly 70% year to date.
Here’s how Warby fared in the fiscal second quarter ended June 30, compared with what analysts expected, based on Refinitiv estimates:
- Loss per share: 1 cent adjusted vs. 2 cents expected
- Revenue: $149.6 million vs. $149.5 million expected
Warby’s loss for the three months ended June 30 widened to $32.2 million, or 28 cents a share, from a loss of $18.8 million, or 35 cents a share, a year earlier. Excluding one-time items, it lost a penny per share.
Sales rose roughly 14% to $149.6 million from $131.6 million a year earlier, boosted in part by loyal customers spending more money on average.
The company said the number of active customers rose 8.7% to 2.26 million. It defines these customers as people who have made at least one purchase of a product or service from Warby in the previous 12-month period.
For fiscal 2022, Warby is now calling for sales in the range of $584 million to $595 million, down from a previous range of $650 million to $660 million.
It sees its adjusted EBITDA at about $22 million to $26 million, including a $7.5 million hit related to pandemic-related business interruptions.
In its most recent quarter, Warby said it opened nine stores, bringing its total number of brick-and-mortar locations to 178. The retailer, founded online in 2010, is increasing its real estate investments as a way to reach more customers and is launching market your brand.
Beyond its eyewear, Warby has a contact lens business and offers in-store eye exam services.
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