Warby Parker's Second-Quarter Report: What You Need to Know

Warby Parker, the popular eyeglasses retailer, is set to release its second-quarter results before the market opens on Wednesday. Here are the key details you should be aware of:

Loss and Earnings

According to FactSet, Warby Parker is expected to report a loss of $12.8 million, or 11 cents per share, compared to a loss of $32.2 million, or 28 cents per share, in the same quarter last year. Adjusted earnings, which exclude one-time items, are projected to be two cents per share.

Revenue

FactSet estimates that Warby Parker's revenue for the quarter will reach $162.6 million, an increase from $149.6 million in the year-ago quarter.

What to Watch For

Investors will be closely monitoring two key factors:

1. Active Customers

Warby Parker's active customer count rose by 2.5% to 2.29 million in the first quarter. Analysts surveyed by FactSet anticipate that this count will grow to 2.32 million in the second quarter.

2. Retail Footprint Expansion

During the first quarter, Warby Parker opened six new stores, bringing the total store count to 204. Analysts predict that the count will reach 215 in the second quarter. The company aims to open 40 new locations this year and have approximately 240 stores by the end of 2023.

Cost Management

Earlier this year, Warby Parker's margins were affected by its store expansion efforts, resulting in increased store occupancy and depreciation costs, as well as higher salary and benefit costs. To see if the company is mitigating some of this margin pressure, investors will be examining whether lowered overhead costs are balancing out the expenses.

Share Performance

On Tuesday, shares of Warby Parker dropped nearly 5% to $14.21 ahead of the earnings report.