Warby Parker slumps to worst day on record from margin challenges

Warby Parker

08/11/2023 19:42

** Shares of lifestyle brand Warby Parker  WRBY.N  slump as
much as 23.9% at $10.89, their worst day on record
    ** Co posts Q3 loss of 15 cents per share, below LSEG
estimate of profit of 1 cent per share, hurt by a 210 basis
point decline in gross margin
    ** WRBY says margin pressure partly driven by sales growth
in lower-margin contact lenses, and higher costs associated with
optometrists
    ** Stock touches its lowest since June 27
    ** WRBY CFO Steve Miller says "while both our top and bottom
line exceeded our prior outlook for Q3, we are cognizant of
headwinds facing the consumer in the current macro environment"
    ** Telsey Advisory group analysts say hike in FY revenue
outlook reflected a "still cautious view of the macro
environment heading into the all-important Q4, a prudent
approach, in our view"
    ** As of last close, WRBY up 6% YTD

 (Reporting by Annett Mary Manoj)
 ((AnnettMary.Manoj@thomsonreuters.com))