Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 51

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 with glasses in the same transaction.

29

Cost of Goods Sold, Gross Profit, and Gross Margin

Six Months Ended June 30,20252024$ Change% Change(in thousands)Cost of goods sold$198,668 $169,384 $29,284 17.3 %Gross profit$239,589 $218,841 $20,748 9.5 %Gross margin54.7 %56.4 %(1.7)%

Cost of goods sold increased by $29.3 million, or 17.3%, for the six months ended June 30, 2025 compared to the same period in 2024, and increased as a percentage of revenue over the same period, from 43.6% of revenue to 45.3% 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, as well as increases in store occupancy costs and doctor headcount due to new retail stores.

Gross profit, calculated as net revenue less cost of goods sold, increased by $20.7 million, or 9.5%, for the six 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 170 basis points for the six months ended June 30, 2025 compared to the same period in 2024. The decrease in gross margin was primarily driven by the sales growth of contact lenses, which are sold at a lower margin than our other eyewear, and increased store occupancy costs and doctor headcount as the number of stores grew from 256 at June 30, 2024 to 298 at June 30, 2025. These impacts were partially offset by increased penetration of our higher priced frames and lenses and selective price increases during the second quarter.

Selling, General, and Administrative Expenses

Six Months Ended June 30,20252024$ Change% Change(in thousands)Selling, general, and administrative expenses$241,643 $232,924 $8,719 3.7 %As a percentage of net revenue55.1 %60.0 %(4.9)%

Selling, general, and administrative expenses increased $8.7 million