Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Warby Parker Beats Revenue Estimates, Narrows Losses

Warby Parker debuted on the New York Stock Exchange on Wednesday, Sept. 29, 2021.
Warby Parker shaved off its losses for a second quarter in a row, the company said on Tuesday. Warby Parker. (Warper Parker)

The eyewear maker on Tuesday reported a 10 percent increase in revenue to $147 million in the final quarter of 2022, coming in above company and analysts’ estimates.

Warby Parker also narrowed its net losses during the quarter to $20 million from $46 million a year earlier, as it reduced its marketing spend by 41 percent in the face of still-high costs to acquire customers online. The brand’s customer acquisition costs dropped by around 36 percent year-over-year in the second half of 2022.

The company said its store expansion has been driving new customer growth. Warby Parker opened 10 stores in the final quarter of the year, bringing its total brick-and-mortar count to 200.

Warby Parker reported a more than $60 million reduction in losses in the third quarter of 2022 and saw its stock soar more than 20 percent. The company’s share price rose around 1 percent following its fourth quarter earnings release.

ADVERTISEMENT

Learn more:

Why Warby Parker’s Stock Soared This Week, and Allbirds’ Sank

The diverging paths for the two trailblazing direct-to-consumer brands is the latest indication that investors now value a clear path to profitability over growth.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Direct-to-Consumer
How direct-to-consumer brands and retail concepts are reshaping the industry, online and off.

Why Legacy Labels Still Want to Be DTC Brands

Companies like Nike, Levi’s and PVH, which have been on years-long journeys to ramp up their direct businesses amid ongoing challenges in wholesale, provide case studies for how to invest in the selling channel.


What It Takes to Win at DTC in 2024

The DTC bust of the past two years has casted a cloud on the sector, but emerging fashion brands with a better handle on supply, demand and customer retention are seeing profitable growth.


How Emerging Brands Can Build DTC Businesses

In London, where independent labels have been hit hard by the implosion of key stockist Matches, brands like Clio Peppiatt, Marfa Stance and Completedworks have grown direct-to-consumer businesses that peers can learn from.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.