Warby Parker Reports Quarter Loss

Shares of Warby Parker Inc. (WRBY) dropped 3.6% in premarket trading after the eyewear retailer reported a surprise fourth-quarter loss.

Financial Details

• Net Losses: $19.05 million, or 16 cents a share, narrowed from $20.25 million, or 18 cents a share, in the same period a year ago.
• Adjusted Net Loss: $1.11 million, while analysts expected earnings per share of 1 cent.
• Revenue: Grew 10.5% to $161.9 million, beating analyst consensus of $160.9 million.
• Gross Margin: Declined to 53.8% from 55.1%, primarily due to increased sales of contract lenses with lower margins than glasses.
• Outlook: Company expects revenue of $748 million to $758 million for 2024, surrounding the current analyst consensus of $751.2 million.

Market Performance

Warby Parker's stock has rallied 39% over the past three months, outperforming the S&P 500 which gained 11.5%.

Since going public in September 2021, the company has reported year-over-year declines in gross margin for each quarter.

Investors and analysts will be closely watching how Warby Parker navigates its margin challenges and drives revenue growth in the upcoming quarters.