Warby Parker's Q2 2025: Unpacking Contradictions in Economic Outlook, Customer Stability, and Growth Strategies

Economic outlook and consumer behavior, customer base stability and growth expectations, SG&A leverage expectations, productivity and store expansion strategy, and tariff mitigation strategies are the key contradictions discussed in Warby Parker's latest 2025Q2 earnings call.



Revenue and Customer Growth:
- Warby Parker reported revenue of $214.5 million for Q2 2025, up 13.9% year-over-year.
- The company ended Q2 with 2.6 million active customers on a trailing 12-month basis, reflecting an acceleration in customer growth to 9% year-over-year.
- Growth was driven by disciplined execution, strategic investments, and leveraging advanced analytics for customer acquisition.

Gross Margin and Tariff Mitigation:
- Warby Parker's adjusted gross margin was 54.3% in Q2 2025, in line with expectations but down from 56.1% in the previous year.
- The decrease was primarily due to tariff-related headwinds in glasses and increased doctor headcount.
- The company implemented strategic price increases on lens types and add-ons, offsetting some of these impacts.

Store Expansion and Product Innovation:
- Warby Parker opened 300th store and launched 5 new collections in Q2, contributing to a 19% year-over-year growth in retail revenue.
- The ongoing expansion of store footprint and product offerings, including progressives and contacts, drove customer engagement and revenue growth.

Cost Management and Adjusted EBITDA:
- Adjusted SG&A improved by 330 basis points year-over-year, demonstrating cost discipline.
- Warby Parker achieved an adjusted EBITDA margin expansion of 130 basis points, with adjusted EBITDA of $25 million.
- These improvements were achieved through disciplined expense management and ongoing efficiencies in staffing and corporate expenses.