Dive Brief:
- Warby Parker will sunset its home try-on program by the end of the year, executives said on a call with analysts Thursday. The news came as the retailer reported Q2 earnings.
- The eyewear company said the vast majority of recent home try-on users live within 30 minutes of a Warby Parker store. The retailer will focus on reaching customers in person through its 300 stores and online through its digital tools, like virtual try-on.
- Warby Parker also announced that after 14 years, Steve Miller is stepping down as CFO, effective Oct. 1. In the interim, co-founder and co-CEO Dave Gilboa will take on the principal financial officer and principal accounting officer roles until a successor is named.
Dive Insight:
As one of the original DTC darlings, Warby Parker launched without retail stores at a time when less than 2.5% of glasses sales were done online, according to co-founder and co-CEO Neil Blumenthal. The company introduced what it calls the “first-of-its-kind” at-home try-on program, allowing customers to test out five glasses for five days from their homes.
“For many years, and especially during the pandemic, home try-on was a novel way to help customers shop for glasses online,” Blumenthal said Thursday.
But over the years, the retailer expanded its presence offline, opening 11 net new stores in its most recent quarter, including celebrating the opening of its 300th location last month. The company on Thursday said it is on track to open 45 new stores this year, including five shop-in-shops within Target stores.
Warby Parker has also increasingly enhanced its in-store experience by offering eye exams at many of its locations. During the second quarter, its eye exam business grew 44% year over year to account for 6% of its total revenue.
Across the broader business, net revenue was up about 14% year over year to $214.5 million as net loss improved 74% to $1.8 million. Net loss included $3.8 million of one-time costs, including $2.5 million in inventory write-downs related to the closing of its home try-on business and $1.3 million in restructuring costs. Warby Parker’s active customer base grew 9% in Q2, reaching 2.6 million, and average revenue per customer grew 4.6% to $316.
The company raised its full-year outlook, now expecting net revenue between $880 million and $888 million — up from prior guidance of $869 million to $886 million — representing growth of 14% to 15%.