David Yu's questions to Warby Parker Inc (WRBY) leadership • Q1 2025
Question
David Yu requested a breakdown of the expected sources of EBITDA leverage between gross margin and SG&A for the second half of the year. He also asked for a quantification of the different tariff mitigation strategies, including supply chain shifts, pricing actions, and expense controls.
Answer
CFO Steve Miller explained that significant leverage is expected to continue coming from disciplined management of non-marketing SG&A, similar to Q1. He noted that gross margin would be positively impacted by supply chain realignment and selective price increases. However, Miller explicitly stated that the company has not provided a specific breakdown of the financial impact of each mitigation bucket, but confirmed the goal is to offset the entire potential $45-$50 million tariff exposure.