Warby Parker stock (WRBY) wobbles on wider loss
13:48, 12 November 2021
Warby Parker's (WRBY) third-quarter sales beat analyst estimates in the first set of earnings released by the North American eyewear retailer since its direct-listing IPO in late September.
The company saw its net loss widen in the period, however.
For the three months ended 30 September, Warby Parker said its net loss widened to $91.1m (£68m) from $41.6m in the third quarter of 2020 as net revenues rose 32% to $137.4m from $104.1m a year earlier.
In pre-market trading, the stock was down 5% at $50.75 but recoveredin the first 10 minites of trading to just above yesterday’s close.
Earnings per share
The loss per share increased to $1.45 from a loss of 78 cents a year earlier.
Analysts were expecting a loss of 52 cents on net revenue of $133m, according to figures widely available on financial news sites.
“We’re incredibly proud of the milestones we achieved in Q3, from opening our second optical lab to going public via a direct listing – and being the first public benefit corporation to do so,” said Neil Blumenthal, Warby Parker co-founder co-CEO, in a press release.
Notably, the company donates one pair of frames to charity for every one sold.
“As we look ahead, we remain laser focused on executing against our growth strategies by increasing our active customer base, expanding our retail footprint, and delivering innovative products and services that further our mission to inspire and impact the world with vision, purpose and style,” Blumenthal said.
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Expenses and outlook
The company said selling, general and administrative expenses were $171.6m in the quarter due to direct-listing expenses, stock-based compensation expense and a stock donation to the Warby Parker Impact Foundation.
Warby Parker said active customers, or unique customers that have made at least one purchase of any product or service in the past 12 months, increased 23% to 2.15 million. The company also opened nine new stores during the quarter and plans on increasing its store count to 161 by year-end.
Looking ahead, the company expects full-year revenue of $539.5m to $542m.
Founded in 2010
The company was founded in 2010 in Philadelphia by university friends Neil Blumenthal, David Gilboa, Andrew Hunt and Jeffrey Raider out of a desire to create high-quality, affordable glasses by adopting a direct-to-consumer process. Blumenthal and Gilboa now sit as co-CEOs of the company; Hunt and Raider remain as directors.
Customers can make purchases online or walk into one of Warby Parker’s 154 stores across the US and Canada.