Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 88

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 percentage and calculated as gross profit divided by net revenue, decreased by 300 basis points for the three months ended June 30, 2025 compared to the same period in 2024. The decrease in gross margin was primarily driven by $2.5 million of one-time inventory write-downs primarily related to our Home-Try On program, as well as sales growth of contact lenses, which are sold at a lower margin than our other eyewear, increased doctor headcount and store occupancy as the number of stores grew from 256 at June 30, 2024 to 298 at June 30, 2025, and tariff related costs. These impacts were partially offset by selective price increases and increased penetration of our higher priced frames and lenses.

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Selling, General, and Administrative Expenses

Three Months Ended June 30,20252024$ Change% Change(in thousands)Selling, general, and administrative expenses$118,134 $114,338 $3,796 3.3 %As a percentage of net revenue55.1 %60.8 %(5.7)%

Selling, general, and administrative expenses increased $3.8 million, or 3.3%, for the three months ended June 30, 2025 compared to the same period in 2024. This increase was primarily driven by higher payroll-related costs from growth in our retail workforce and investments in marketing, partially offset by lower stock-based compensation, mostly related to the 2021 Founders Grant as award tranches finish expensing. As a percentage of revenue, SG&A decreased by 570 basis points, primarily driven by slower growth in corporate expenses and reduced stock-based compensation.

Interest and Other Income, Net

Three Months Ended June 30,20252024$ Change% Change(in thousands)Interest and other income, net$1,984 $2,567 $(583)(22.7)%As a percentage of net revenue0.9 %1.4 %(0.5)%

Interest and other income, net decreased $0.6 million, or 22.7%, for the three months ended June 30, 2025 compared to the same period in 2024, primarily due to unfavorable fluctuations in foreign currency rates and lower interest rates on our increased cash and cash equivalents balance.

Provision for Income Taxes

Three Months Ended June 30,20252024$ Change% Change(in thousands)Provision for income taxes$(789)$373