Affordable and stylish eyewear brand Warby Parker’s Q1 2023 findings show that revenue is up by over 12%. This company has experienced some losses in revenue in 2022 and its journey to remain an independent and economical eyewear company has been slightly tumultuous. However, the tides are turning and Warby Parker’s net loss is now around $11 million which is a huge improvement from a loss of $34 million in 2022.
Why has Warby Parker been losing so much money over the past few years? 2 main reasons: increase in store count (ummm…does Warby Parker really need a presence on exorbitantly priced Abbot Kinney Blvd?) and increase in employees’ salary and benefits (okay, that makes sense). However, these seem to have been growing pains as they were establishing their presence because by the end of 2023, Warby Parker is projected to increase its revenue by 10% compared to 2022. Also, going back to brick-and-mortar stores, it seems that this trendy eyewear brand has taken its storefront expenses into consideration. According to Retail Dive, “Warby Parker opened six new stores during Q1 and closed two, co-founder and co-CEO Neil Blumenthal said on a call with analysts Tuesday.”
Also, turns out that Warby Parker is actually beating expectations as the eyewear market in general has been declining. “We achieved double digit revenue growth, ahead of expectations and well above the current industry forecasted growth rate,” says co-founder and co-CEO, Dave Gilboa. Its e-commerce sales have contributed to its net loss, due to spending less on marketing for that channel and prioritizing brick-and-mortar stores. However, they do have a sound strategy for opening more store fronts as they are now offering eye exam services and hiring more optometrists. Overall, sometimes companies must go through some losses as they are trying to evolve their business model! They aren’t just an e-commerce platform for eyewear anymore, they are ready to compete with Lenscrafters! Although, the marketing cuts may have been too abrupt and Warby Parker should consider investing in that channel for the remainder of the year, especially if they are starting to provide eye exams to really become a well-rounded eyewear brand.
Warby Parker is at a powerful position right now with the eyewear industry at a decline. They can truly cement itself as a new generation and independent brand with investments in marketing, optometrists, and fashion forward product assortment. Looks like they have a great head start!
https://www.retaildive.com/news/warby-parker-Q1-revenue-jumps-reins-in-marketing-spend/649785/
https://seekingalpha.com/news/3967815-warby-parker-tops-estimates-in-q1-as-it-continues-to-scale-up
One reply on “Warby Parker’s Revenue is Up!”
Great post Surbhi! I’ve always been curious about trying Warby Parker since I’ve seen multiple influencers mention the brand, but it would be nice to visit an actual store to try on glasses so I don’t have to make the extra effort of sending back frames that don’t suit me.