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09/22/2021

Warby Parker shares financial outlook ahead of going public

Marianne Wilson
Editor-in-Chief
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Warby Parker
Warby Parker expects to end the year with 155 to 160 stores.

Warby Parker provided financial guidance for its third quarter and fiscal year as it prepares to make its debut in the public arena on Sept. 29.

The direct-to-consumer eyewear brand expects third-quarter net revenues to range from $131 million to $133 million, representing a 26% to 28% year-over-year increase. Its adjusted EBITDA margin is expected to be approximately 4% to 5%.

For the full year, Warby Parker expects revenue of $532 million to $537 million, up 35% to 36% from last year and up 44% to 45% from 2019. It expects adjusted EBITDA margin of approximately 4% to 5%.

Founded online in 2010, Warby Parker opened its first brick-and-mortar location in 2013. It currently operates more than 145 stores across the United States and Canada. It’s on track to open 30 to 35 new locations this year, for a total of 155 to 160 stores.

Similar to some other DTC brands that have recently filed to go public, Warby Parker has struggled with profitability, reporting a net loss of $55.9 million net loss in 2020.  However, it narrowed its loss in the first half of 2021, reporting a $7.3 million loss compared to a loss of $10 million in the year-ago period.

“As we look to the future, we’re inspired by the possibilities in front of us,” said co-founders and co-CEOs Neil Blumenthal and Dave Gilboa. “The outlook we’ve provided today underscores our belief that delivering remarkable customer experiences, making a positive impact on all stakeholders, and living our core values will lead to continued long-term sustainable growth.”

For the fiscal year 2022, Warby Parker expects revenue growth of at least 25% when compared to fiscal year 2021, and a one to two percentage point improvement in fiscal year 2022 adjusted EBITDA margin when compared last year.

Throughout the first half of 2021 we’ve continued to observe strong and consistent revenue growth” said CFO Steve Miller. “As we look ahead to the remainder of the year and into 2022, we expect these trends to sustain, supported by continued strong customer economics, our expanding retail footprint, as well as continued steady increases in active customers and average order value as we evolve into a holistic vision care company.”