Warby Parker stock dropped following the company’s posting of a weaker-than-expected guidance for fiscal 2022, along with a net loss in the fourth quarter. The stock dropped 6.8% to $25.01, having fallen roughly 46% this year alone.
This year, the retailer anticipates a revenue of $650 to $660 million, a huge disappointment since analysts from FactSet were expecting at least $668.5 million. The impact of the loss of nearly $15 million related to the Omicron variant at the start of the year was included in the impact.
For its fiscal fourth quarter of 2021, the company made revenues of $132.9 million, totalling its full-year revenue at $540.8 million. In contrast, analysts expected an average of roughly $542 million.
According to the company, the net loss for the quarter rose from $41.6 million to $45.9 million, mainly due to increased selling, general and administrative expenses. The expenses increased from $51.9 million to $122.1 million on the back of an increased $31.6 million stock-based compensation of expenses and payroll taxes.
Recently, the company opened 35 new stores, making a grand total of 161 stores.