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.

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.