Financial Performance - For the three months ended September 30, 2024, the company generated net revenue of $192.4 million, an increase of 13.3% from $169.8 million in the same period of 2023[106]. - The gross profit for the three months ended September 30, 2024, was $104.9 million, resulting in a gross profit margin of 54.5%, slightly down from 54.6% in the prior year[106]. - The company reported a net loss of $4.1 million for the three months ended September 30, 2024, compared to a net loss of $17.4 million in the same period of 2023, indicating improved financial performance[106]. - Adjusted EBITDA for the three months ended September 30, 2024, was $17.3 million, up from $11.0 million in the same period of 2023, reflecting a margin increase to 9.0% from 6.5%[106][112]. - For the nine months ended September 30, 2024, net revenue reached $580.7 million, a 14.3% increase from $507.9 million in the same period of 2023[107]. - The gross profit for the nine months ended September 30, 2024, was $323.7 million, with a gross profit margin of 55.7%, up from 54.8% in the prior year[107]. - Net revenue for the three months ended September 30, 2024, was $192.4 million, an increase of $22.6 million or 13.3% compared to $169.8 million in the same period of 2023[133]. - Average Revenue per Customer increased to $305 from $284 year-over-year, driven by strong adoption of higher-priced products and bundling promotions[133]. - Active Customers grew by 5.6% compared to the prior year, contributing to the revenue increase[133]. - Net revenue increased by $72.8 million, or 14.3%, for the nine months ended September 30, 2024, compared to the same period in 2023, driven by an increase in Average Revenue per Customer to $305 from $284[142]. Cost and Expenses - Cost of goods sold increased by $10.5 million or 13.6% to $87.6 million, while gross profit rose by $12.1 million or 13.1% to $104.9 million[135]. - Gross margin slightly decreased by 10 basis points to 54.5% for the three months ended September 30, 2024, primarily due to lower-margin sales growth in contact lenses[137]. - Selling, general, and administrative expenses (SG&A) for the three months ended September 30, 2024, were $111.5 million, compared to $112.5 million in the same period of 2023[124]. - Selling, general, and administrative expenses decreased by $1.0 million, or 0.9%, for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a $5.5 million decrease in stock-based compensation[138]. - Cost of goods sold increased by $27.2 million, or 11.8%, for the nine months ended September 30, 2024, but decreased as a percentage of revenue by 90 basis points, from 45.2% to 44.3%[143]. - Gross profit increased by $45.6 million, or 16.4%, for the nine months ended September 30, 2024, primarily due to the increase in net revenue[144]. Customer and Market Growth - The company had 2,431 active customers as of September 30, 2024, compared to 2,303 in the same period of 2023, indicating a growth in customer base[112]. - The total number of retail stores increased to 269 as of September 30, 2024, up from 227 in the previous year, enhancing market presence[112]. - The number of stores offering eye exams increased from 183 to 228 year-over-year, contributing to operational growth[137]. Cash Flow and Liquidity - As of September 30, 2024, the company had cash and cash equivalents of $251.0 million, up from $216.9 million as of December 31, 2023[152]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $78.8 million, compared to $47.3 million for the same period in 2023[160][161]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $48.3 million, an increase from $41.1 million in the same period of 2023[162][165]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $3.8 million, up from $2.1 million in 2023[166]. - The company experienced a net increase in cash and cash equivalents of $34.1 million for the nine months ended September 30, 2024, compared to $7.4 million in 2023[163]. Debt and Financial Obligations - The 2024 Credit Facility consists of a $120.0 million five-year revolving credit facility, with an option to increase the amount by up to $55.0 million[156]. - The company is subject to a maximum consolidated senior net leverage ratio of 3:1 under its 2024 Credit Facility, applicable when total borrowings exceed $30.0 million[159]. Internal Controls and Compliance - Material weaknesses in internal controls were identified, specifically in IT general controls and financial reporting processes[180]. - The company has invested significantly in IT improvements and added resources to address identified material weaknesses[181]. - Key remediation measures include implementing a market-leading ERP system to enhance error prevention and detection[181]. - Expert SOX consultants have been engaged to assist in the development and testing of the control environment[181]. - Training sessions for control owners have been conducted to improve control design and execution[181]. - The company has incurred significant costs related to remediation efforts and anticipates additional time and expenses[181]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected controls[184]. - The company cannot assure that current measures will fully remediate control deficiencies or prevent future weaknesses[182]. - Future changes in business conditions may render current controls inadequate[183]. - Any failure to maintain effective controls could harm operating results or lead to restatements of financial statements[183]. - The company continues to hire qualified accounting and financial reporting personnel with public company SOX experience[181]. Future Outlook - The company expects operating losses to continue in the foreseeable future as it invests in business expansion[153]. - Seasonal trends may cause fluctuations in quarterly results, impacting the predictability of business and operating results[151]. - The company expects fluctuations in cost of goods sold as a percentage of net revenue due to product mix and demand changes[128]. - The company does not believe that foreign exchange rates have a material effect on its business, financial condition, or results of operations[173].

Core Insights - Warby Parker Inc. reported quarterly earnings of $0.05 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.01 per share a year ago [1] - The company achieved revenues of $192.45 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 1.58% and up from $169.85 million year-over-year [2] - Warby Parker shares have increased approximately 34.5% year-to-date, outperforming the S&P 500's gain of 24.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $183.08 million, and for the current fiscal year, it is $0.26 on revenues of $760.76 million [7] - The estimate revisions trend for Warby Parker is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Medical - Products industry, to which Warby Parker belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Growth - Net revenue increased 13.3% year over year to $192.4 million, up $22.6 million from the prior year period[4] - For the full year 2024, the company raised its revenue guidance to $765 to $768 million, representing growth of approximately 14% to 15% versus full year 2023[12] - Total net revenue for the three months ended September 30, 2024, was $192,447,000, representing a 13.3% increase from $169,849,000 in the same period of 2023[34] Customer Metrics - Active Customers increased 5.6% to 2.43 million on a trailing 12-month basis, while Average Revenue per Customer increased 7.5% to $305[4] Profitability and Loss - GAAP net loss improved by $13.3 million to $4.1 million, primarily due to leveraging the expense base on higher revenue[9] - The company reported a net loss of $4,072,000 for the three months ended September 30, 2024, compared to a net loss of $17,413,000 for the same period in 2023, reflecting a significant improvement[34] EBITDA Performance - Adjusted EBITDA increased $6.3 million to $17.3 million, with an Adjusted EBITDA Margin of 9.0%, up 2.5 points[10] - Adjusted EBITDA for 2024 is projected to be approximately $73 million at the midpoint of the revenue range, based on an Adjusted EBITDA Margin of 9.5%[12] - Adjusted EBITDA for the three months ended September 30, 2024, was $17,308,000, with an adjusted EBITDA margin of 9.0%[38] Cash Flow - Free Cash Flow for the quarter was $13.1 million, with net cash provided by operating activities of $27.3 million[4] - The company experienced a net cash provided by operating activities of $78,832,000 for the nine months ended September 30, 2024, compared to $47,326,000 in the same period of 2023, an increase of 66.6%[36] - Net cash provided by operating activities for the three months ended September 30, 2024, was $27,282 thousand, an increase from $19,931 thousand in the same period last year[43] - Free cash flow for the three months ended September 30, 2024, was $13,059 thousand, compared to $4,443 thousand in the prior year[43] Expenses - Selling, general, and administrative expenses (SG&A) were $111.5 million, representing 57.9% of revenue, down from 66.2% in the prior year[8] - Selling, general, and administrative expenses for the three months ended September 30, 2024, were $111,480 thousand, accounting for 57.9% of revenue, compared to 66.2% in the same period last year[41] - Selling, general, and administrative expenses for the nine months ended September 30, 2024, were $344,404 thousand, which is 59.3% of revenue, down from 64.7% in the previous year[41] - The adjusted selling, general, and administrative expenses for the nine months ended September 30, 2024, were $302,166 thousand, reflecting a decrease from $267,261 thousand in the same period last year[43] Asset and Equity Growth - Cash and cash equivalents increased to $251,032,000 as of September 30, 2024, from $216,894,000 at the end of 2023, marking a growth of 15.7%[36] - Total assets rose to $637,990,000 as of September 30, 2024, compared to $580,312,000 at the end of 2023, an increase of 9.9%[32] - The company’s total stockholders' equity increased to $336,750,000 as of September 30, 2024, up from $301,787,000 at the end of 2023, representing an increase of 11.6%[32] Inventory and Cost of Goods Sold - Inventory decreased to $52,766,000 as of September 30, 2024, from $62,234,000 at the end of 2023, a reduction of 15.2%[34] - Cost of goods sold for the three months ended September 30, 2024, was $87,580 thousand, compared to $77,117 thousand for the same period in 2023, representing an increase of 6.4%[41] - The company reported a total of $256,964 thousand in cost of goods sold for the nine months ended September 30, 2024, compared to $229,752 thousand for the same period in 2023, indicating a year-over-year increase of 11.9%[41] Gross Profit and Margin - Gross margin was 54.5%, slightly down from 54.6% in the prior year, primarily due to sales growth of contact lenses and increased doctor headcount[7] - Gross profit for the three months ended September 30, 2024, was $104,867 thousand, with a gross margin of 54.5%, slightly down from 54.6% in the prior year[41] - Adjusted gross profit for the three months ended September 30, 2024, was $105,148 thousand, reflecting a gross margin of 54.6%[43] Store Expansion - Opened 13 net new stores during the quarter, ending Q3 with a total of 269 stores[5] Strategic Initiatives - The company has implemented new strategies including stock-based compensation adjustments and ERP system implementation costs, impacting overall expenses[43]

Core Insights - Goldman Sachs analyst Brooke Roach revised ratings on Warby Parker Inc. and Canada Goose Holdings Inc. ahead of their third-quarter earnings, noting fluctuating trends in the apparel sector as summer transitions to early fall [1][2] - Despite volatility expected for the remainder of 2024, early indicators such as falling gas prices and increased consumer discretionary cash flow suggest a more positive outlook for 2025 [1] Warby Parker Inc. (WRBY) - The stock rating was upgraded to Buy from Neutral, with the price target raised to $18 from $15, driven by promising tailwinds including expansion of insurance partnerships, growth in the vision care market, and increasing active customer numbers [2] - Improved gross profit rates from stronger glasses sales and cost-efficiency efforts in stores are expected to enhance fundamentals [2] Canada Goose Holdings Inc. (GOOS) - The stock rating was downgraded to Sell from Neutral, with the price target lowered to $9 from $11.5, reflecting a less appealing risk/reward profile compared to peers in the apparel sector [2][3] - The bearish outlook is attributed to heightened competition, normalizing brand momentum, a slowing global luxury market, and a volatile macroeconomic environment in China [3] - Despite the downgrade, there is optimism regarding strategic initiatives such as product capsules from the new creative director and improved retail execution [3] Market Context - Key factors to monitor include the upcoming U.S. elections and their implications for tariffs and geopolitical risks, a shortened holiday season, and challenges from early fall weather [2]

Eyewear stock Warby Parker Inc (NYSE:WRBY) is on the rise today, after an upgrade from Goldman Sachs to "buy" from "neutral," with a price-target hike to $18 from $15. The analyst in coverage cited strong margin growth and improving fundamentals in comparison to its competitors. At last glance, WRBY was up 3.5% to trade at $17.13, heading for its highest close since early June. Today's pop also has the equity jumping above recent pressure at $16.50. Year to date, the stock is up over 20%. Of the 15 analysts ...

The shares of eyeglasses retailer Warby Parker Inc (NYSE:WRBY) sport a 6.9% pre-market lead, after a bull note from JMP Securities. The analyst upgraded WRBY to "outperform" from "market perform" and set a $20 price target, citing management's constructive commentary as a catalyst for potential growth in upcoming quarters. In addition, Piper Sandler assumed coverage with an "overweigh" rating and $18 price objective. There's room for more bull notes to roll in, with eight of 13 covering brokerages still rec ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol Name of each exchange on which registered Class A Common Stock, $0.0001 par value per share WRBY New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ...

Warby Parker Inc. (NYSE:WRBY) Q2 2024 Earnings Conference Call August 8, 2024 8:00 AM ET Company Participants Jaclyn Berkley - Head Investor Relations Dave Gilboa - Co-Founders & Co-Chief Executive Officer Neil Blumenthal - Co-Founders & Co-Chief Executive Officer Steve Miller - Senior Vice President & Chief Financial Officer Conference Call Participants Mark Altschwager - Baird Oliver Chen - TD Cowen Janine Stichter - BTIG Dylan Carden - William Blair Brooke Roach - Goldman Sachs Alex Straton - Morgan Stan ...

| --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS / NON-GAAP FINANCIAL MEASURES 2 .............. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, including expectations regarding achieving pro ...

Warby Parker Inc. (WRBY) reported $188.22 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 13.3%. EPS of $0.06 for the same period compares to $0.04 a year ago. The reported revenue represents a surprise of +0.71% over the Zacks Consensus Estimate of $186.89 million. With the consensus EPS estimate being $0.05, the EPS surprise was +20.00%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...