Warby Parker (WRBY) - Get Warby Parker, Inc. Class A Report climbed Friday after the online eyewear retailer, in its first quarterly report as a public company, posted a wider-than-expected third-quarter loss but beat Wall Street's sales estimates.
Shares of the New York company at last check were up 3.6% to $55.42.
Warby Parker reported a net loss of $91.1 million, or $1.45 a share, compared with a loss of $46.1 million, or 78 cents, in the year-earlier quarter. Revenue totaled $137.4 million, up 32% from a year earlier.
Analysts surveyed by FactSet were calling for a loss of 52 cents a share and revenue of $133 million.
Gross-profit margin narrowed to 58% from 61.5% a year earlier, reflecting in part Warby Parker's strategy to grow its contact-lens offering.
Of the difference in margin, 0.7 percentage point reflects stock-based compensation expense related to the company's direct listing in 2021.
And the year-earlier margin includes 0.9 percentage point of improvement related to a tariff rebate Warby Parker received.
Active customers totaled 2.15 million, 23% up from a year earlier.
The company said it ended the third quarter with $266.2 million in cash and cash equivalents.
Looking ahead, Warby Parker said it expected fiscal year revenue of $539.5 million to $542 million, representing growth of 37% to 38% from the prior year. The FactSet consensus calls for annual revenue of $538.7 million.
The company also said it expected to open 35 new stores, bringing the total store count to 161.
Warby Parker began trading on the NYSE via a direct listing on Sept. 29 with an assigned reference price of $40.
Last month Warby Parker received buy ratings from Goldman Sachs and other analysts based on fundamentals.
Goldman analyst Brooke Roach initiated coverage with a $72 price target to go with her buy rating. She said in a research note that she viewed the company "as a high-growth, omnichannel brand with exposure to the structurally growing vision-care market."