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Warby Parker Continues Stable Growth and Store Expansions

An image of a Warby Parker storefront
Warby Parker will open 40 more stores in 2024 and ramp up marketing spend to boost e-commerce sales. (Shutterstock)

Warby Parker’s revenue for 2023 rose 12 percent year over year to $670 million, beating estimates, as the eyewear maker’s store expansion continues to be a growth driver.

The brand increased store count to 237 during the year, up from 200 at the end of 2022. Its retail outposts have served as a customer acquisition vehicle, allowing Warby Parker to avoid rapid increase in marketing costs. The company’s operating expenses decreased 3 percent year over year for 2023, and only grew 6 percent in the final quarter of the year.

Warby Parker’s adjusted earnings before interest, taxes, depreciation and amortisation nearly doubled to $52 million in 2023, and grew 10 percent in the fourth quarter. It also generated $7 million in cash flow for the full year, up from a $49 million cash burn in 2022. The brand will open at least 40 more stores in 2024 in pursuit of sales growth of as much as 13 percent to $758 million.

Yet investors may want to see more from the eyeglass seller than store openings. Warby Parker’s stock dropped 12 percent following its earnings release.

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But Warby Parker plans to right-size flailing parts of its business. The company will ramp up marketing spending in 2024 to more than 10 percent of revenue to boost e-commerce sales, which contracted in the last three years as the brand focused on expanding its retail footprint. Warby Parker expects its adjusted EBITDA will increase nearly 30 percent to $67 million.

Learn more:

The DTC Eyewear Brands Challenging Warby Parker

As the digital pioneer focuses more on its stores, competitors see an opportunity to fill the void in e-commerce. But with online prescription glasses sales on the decline, they may soon need to follow their rival into the real world.

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