Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 49

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 profit113,609 105,382 8,227 7.8 %Gross margin53.0 %56.0 %(3.0)%

Cost of goods sold increased by $18.0 million, or 21.8%, for the three months ended June 30, 2025 compared to the same period in 2024, and increased as a percentage of revenue over the same period, from 44.0% of revenue to 47.0% of revenue. The increase in cost of goods sold was primarily driven by increased product and fulfillment costs associated with our sales growth, particularly related to the growth in our contact lens offering, increases in store occupancy costs and doctor headcount due to new retail stores, and inventory impairment charges primarily related to sunsetting the Home Try-On program.

Gross profit, calculated as net revenue less cost of goods sold, increased by $8.2 million, or 7.8%, for the three months ended June 30, 2025 compared to the same period in 2024, primarily due to the increase in net revenue over the same period.

Gross margin, expressed as a 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.

28

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