Co-CEOs, Neil Blumenthal & Dave Gilboa of Warby Parker on NYSE, September 29, 2021.
Warby Parker reported Friday that third quarter sales were up 32% year over year, but losses increased as costs related to the recent direct listing and stock-based compensation weighed on sales.
The eyewear maker’s shares rose more than 7% in early trading following Warby’s first financial report as a public company. It went directly to the New York Stock Exchange on September 29th.
Warby’s net loss for the three month ended September 30 increased to $ 91.1 million, or $ 1.45 per share, compared to a loss of $ 41.6 million, or 78 cents per share, last year.
The company reported $ 65 million in stock-based compensation expense, $ 23.9 million in expenses related to its direct listing, and $ 7.8 million in expenses from a stock donation to the Warby Parker Impact Foundation.
Warby also said that the contact lens business, which now accounts for about 5% of sales, is growing, these transactions are less profitable and therefore can weigh on margins.
Revenue rose 32% to $ 137.4 million from $ 104.1 million. Revenue increased 45% on a two-year basis.
Neil Blumenthal, co-founder and co-CEO, said in an interview that consumer shopping habits are returning to pre-pandemic times as more people come to Warby’s stores than buy online.
“But we don’t care where this last transaction takes place,” said Blumenthal. “And we’ve still found that over 70% of our customers browse our website and app, shop and interact with us before doing business with us.”
The company said the total number of active customers was 2.15 million, up 23% from 2020 levels.
For the full year, Warby expects revenue between $ 539.5 million and $ 542 million, up 38% year over year or 46% growth on a two-year basis.
Co-founder and co-CEO Dave Gilboa said Warby typically sees a surge in sales in late December as consumers try to use up their flexible spending accounts and other insurance benefits before the new year.
The company plans to open 35 stores and thus 161 locations by the end of the year.
Warby shares closed at $ 53.51 on Thursday, nearly 1% off their opening price of $ 54.05.
Find the Warby Parker Results Press Release here.