Warby Parker, a direct-to-consumer eyewear brand, was founded in 2010 by Dave Gilboa, Neil Blumenthal, Andy Hunt, and Jeff Raider after Gilboa lost a $700 pair of glasses. The company disrupted the global eyewear industry with innovative strategies, such as offering affordable eyeglasses online and in brick-and-mortar stores. With nearly $670 million in revenue last year and a market value of $1.79 billion, Warby Parker is on the brink of profitability, a rarity for direct-to-consumer brands due to razor-thin margins.
The co-founders launched the brand while still full-time students, investing $120,000 of their savings to start the business. They initially ran Warby Parker out of Blumenthal’s apartment, attracting attention from media outlets like Vogue and GQ, which dubbed them the “Netflix of eyewear.” The company quickly gained popularity, hitting its first-year sales targets within three weeks. Customers began requesting in-person visits to try on glasses, leading to the opening of the first brick-and-mortar store in SoHo in 2013.
Retail stores have become a significant source of revenue for Warby Parker, accounting for more than two-thirds of total sales last year. With plans to open additional locations, the co-CEOs aim to operate over 900 stores in the future. Despite consistent revenue growth, the company has yet to achieve profitability. However, an adjusted EBITDA figure of $52.4 million in 2023 suggests financial viability and potential profitability by next year, according to industry analysts.
Warby Parker is focused on becoming a holistic vision-care company by offering eye exams in retail stores and expanding services to meet customer needs. The addition of eye exams has helped increase average revenue per customer by over 9% annually. The company has over 2.3 million active customers and plans to open hundreds more stores globally. While smaller than industry giants like EssilorLuxottica, with more than $28 billion in sales annually, Warby Parker sees ample room for growth in the vast global eyewear market.
The company’s co-founder, Neil Blumenthal, envisions Warby Parker becoming one of the most beloved brands worldwide, reflecting the brand’s commitment to providing quality eyewear at affordable prices. By offering practical strategies in an online course, CNBC aims to help individuals enhance their financial literacy and make smart money decisions. The course includes tips on budgeting, managing debt, and growing wealth, empowering individuals to achieve financial success. Subscribers can use the code EARLYBIRD for a 30% discount until September 30, 2024, to kickstart their financial journey.
