Blurred vision

Blurred vision

Share this article


Warby Parker (WRBY, $16.90) joined a slew of other retailers in announcing a disappointing earnings call. The D2C eyewear brand slashed its guidance and is reining in costs after its Q2 net loss widened by $21.9 million to $32.2 million, mostly due to a 420 basis point bump in SG&A expenses, including labor at more stores, corporate overhead, costs from going public and tech investments.

Sales grew roughly 14% to $149.6 million from $131.6 million a year earlier, boosted in part by loyal customers spending more money on average. Active customers increased 8.7% to 2.26 million. Beyond its glasses, Warby has a contact lens business (where revenue doubled in Q2) and offers services in its stores for eye exams.

Why it matters

Warby Parker has evolved from an online DTC purveyor of spectacles to a more well-rounded vision care company very focused on brick-and-mortar retail. However, its move to slash jobs closely follows on the heels of direct-to-consumer footwear seller AllBirds (BIRD, $4.68), which recently eliminated some corporate positions, as well as a round of layoffs at resale platform StockX.

akbaraka

Get Smarter
About Investing

Join 35,000+ subscribers and get our 5 min daily newsletter on daily local and international financial news.
akhbaraka
Get Smarter<br/> About Investing

Similar News