Warby Parker stock moves higher despite Q3 losses
Yahoo Finance Live's Karina Mitchell looks at eyeglass supplier Warby Parker's positive moves in the market despite reporting Q3 losses.
Video Transcript
KARINA MITCHELL: And we want to turn our attention now to an alert for earnings. And taking a look at Warby Parker, if you look at their stock now, it's up 6.3%. They delivered earnings today. Third quarter revenue-- just want to give you some of the breakdown-- rose 32%, to 137 million, from a year ago. Sales were up 45% over a two-year period, but its losses did widen, to 91 million. That's up from 41 million a year earlier. The company reported 65 million in stock-based compensation expenses. And the eyeglass maker also said active customers totaled 2.15 million. That is a 23% jump from 2020 levels.
Warby also says, as it grows its contact lens business, which is about 5% of its sales today, those transactions are less profitable, and therefore can be a drag on margins. They were saying that's one of the reasons why they did widen some of those losses. For the full year, however, Warby expects revenue to be between 539 million and 542 million, representing as much as a 38% jump from a year earlier. That's a 46% growth on a two-year basis. Part of the reason why you see that stock jumping after those results.
And the company also says that it is planning to open about 35 stores by the end of the year, bringing its total count to 161 stores. And you know, you look at their model, it's one of the first direct to consumer companies that prove the traditionally brick and mortar-driven eyewear industry can go digital, right, because it offers so many options out there. It will give you virtual eye vision testing, as well as virtual options to try on their glasses, as well.
But they also did say that they are seeing at the-- sort of as we sort of emerge from the pandemic, if you will, that more and more people are interested in going back into the stores, which they really like. They're well sort of decorated and have a good design. People get a good vibe when they're in there. And so people want to sort of go in, as well, and look at these glasses and try them on, as well. Growth is also being fueled by success in those stores. And some of those risks that they are facing, you know, is whether they can continue to roll out those stores and continue that brick and mortar model, as well.
