A customer tries on glasses at a Warby Parker store in Los Angeles.
Michael Buckner | Getty Images
Warby Parker on Thursday reported continued losses and said its sales were hit during the festive quarter due to the Omicron variant of the Covid-19, which kept people away from eyewear retailers.
The company also issued a weaker-than-expected 2022 sales forecast. Warby Parker sees annual revenue between $ 650 million and $ 660 million. Analysts were looking for $ 687.7 million, according to Refinitiv.
Management said omicron results led to a loss of nearly $ 5 million in sales in the fourth quarter and predicts it will lose more than $ 15 million in the first quarter as fewer customers came for eye exams and new glasses in early January.
The stock reversed on Thursday and closed 3.3% at $ 27.70, after falling more than 20% in pre-market trading. Shares remain well below the 52-week high of $ 60.30, which reached last November, and below the immediate entry price of $ 54.05. Its share has fallen about 40% from year to date.
Warby Parker posted a net loss of $ 45.9 million, or 41 cents a share, in the quarter ended Dec. 31, compared with a loss of $ 4.3 million, or 8 cents a share, a year earlier. It attributed the broader losses to a $ 31.6 million increase in equity-based compensation and other related employer payroll taxes.
Revenue rose to $ 132.9 million from $ 112.8 million a year ago.
Warby Parker has blamed the spread of the Omicron variant for hitting sales in the last weeks of December, which coincided with the typical peak in demand in the optics industry, as consumers use their last flexible spending dollars before the New Year.
Analysts had expected Warby Parker to report sales of $ 133 million in its fourth quarter, down 9 cents a share, according to Refinitiv.
One bright spot, however, was that people who visited Warby Parker spent more money overall. Average revenue per customer increased 13% year-on-year to $ 246, the company said.
Co-founder and CEO Dave Gilboa called Warby Parker’s recent challenges a “temporary setback.” In recent weeks, the company has seen a recovery curve, he told analysts in a teleconference.
“We remain more confident than ever of our long-term growth plan for a further acceleration of our growth in the coming months,” he said.
Warby Parker said it expects its sites to return to 100% productivity before the end of the year. It opened 35 stores last year, ending in 2021 with 161 locations. In 2022, it plans to open another 40 sites.
The company also has a virtual test option available on its website for customers to see how the glasses might look differently on their faces. Warby said this was a competitive advantage when in-store sales were declining.
In 2021, Warby Parker e-commerce sales accounted for 46% of total revenue, slightly down from 50% in 2020 but from 35% in 2019.
Find the full Warby Parker earnings press release here.
Warby Parker (WRBY) reports 4th quarter losses 2021
Source link Warby Parker (WRBY) reports 4th quarter losses 2021