The eyewear retailer’s earnings exceeded expectations as tariff refunds lifted gross margin by 500 basis points.
Warby Parker reported a second-quarter profit of $4.6 million, reversing a $1.75 million loss from the same period last year. The turnaround was driven by an $11.8 million tariff refund, which contributed 500 basis points to gross margin, pushing it to 57.9% of revenue.
Revenue rose 9.8% to $235.5 million, slightly below the $238 million analysts expected. Gross profit increased to $136.5 million from $113.6 million a year earlier. Adjusted EBITDA climbed to $32.9 million, with a margin of 14.0%, as the company invested in an upcoming AI-powered eyewear launch.
The active customer base grew 4.1% year over year to 2.71 million, while average revenue per customer rose 6.6% to $336. The company used part of the tariff refund to offset higher selling and technology costs tied to the new product rollout.