By Roshan Fernandez

Warby Parker's chief executive said the eyeglass retailer will reduce its sourcing from China by over half, to less than 10% of its cost of goods sold, by the end of the year.

The New York City based-company lowered its revenue guidance for the full year as a result of tariffs, while emphasizing its ongoing efforts to diversify its supply chain.

The company has reallocated frame production away from Chinese partners and to other partners elsewhere in Asia and Europe, executives said on the company's earnings call. It moved a significant portion of lens sourcing out of China to U.S. partners as well.

Warby Parker now expects full-year revenue to between $869 million to $886 million, down from a previously issued range of $878 million to $893 million.

Adjusted earnings before interest, taxes, depreciation and amortization are now expected to be between $91 million to $97 million for the full year, down from a previous midpoint of $97 million. That guidance assumes Warby Parker successfully mitigated the majority of tariffs at the current rates, the company said.

Warby Parker said the quarter had the highest e-commerce growth since 2021. The company opened a net of 11 new stores, and is on track for 45 new openings this year.

The company reported first-quarter profit of $3.47 million, or 3 cents a share, compared with a loss of $2.68 million, or a loss of 2 cents a share, a year earlier. That marked its first profit as a publicly traded company.

Analysts polled by FactSet were expecting 5 cents a share.

Revenue rose 11.9% to $223.8 million from the year-ago quarter. Analysts were expecting $225.3 million.

Average revenue per customer in the first quarter increased 4.8% to $310. It's also the seventh-straight quarter of accelerated active customer growth.

Write to Roshan Fernandez at roshan.fernandez@wsj.com

(END) Dow Jones Newswires

May 08, 2025 10:53 ET (14:53 GMT)

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