Warby Parker has immense expansion goals
Key takeaways:
- Warby Parker debuted on the stock market in September in an immediate listing.
- Co-founder Dave Gilboa stated it is becoming a “holistic eye care” firm instead of a glasses-maker.
- Gilboa said the company could expand faster than the remainder of the industry, but it is restricted by incumbent EssilorLuxottica, with a market cap of approximately $87 billion.
Critics are divided on its bid to take on EssilorLuxottica:
Eyewear firm Warby Parker is at an inflection point in its 12-year record.
The company has been credited with being a chief in direct-to-consumer. In this model, companies cut out mediators to sell via their shops. It has arguably encouraged other firms such as luggage-maker Away and sneaker brand Allbirds.
Warby Parker earned its reputation by selling glasses online and undercutting incumbents such as Ray-Ban designer EssilorLuxottica by presenting frames with a starting cost of $95 — with lenses.
Having debuted on the stock market via an immediate listing on Sept. 29 and noticing its stock worth soar that day, Warby Parker is now launching on the next leg of its travel: it is moving toward selling services as well as glasses, co-founder and CEO Dave Gilboa informed CNBC in a phone interview.
“We’re at this kind of impressive shift where historically we’ve been a glasses firm and eyeglasses brand, and now, we’re transitioning to becoming a holistic eye care business,” Gilboa stated. “Where, in addition to purchasing glasses from us ... Now, an increasing number of our clients are also getting their eyesight exam and medications from us,” he added.
Warby Parker’s shoppers paid an average of $218 each in 2020, up from $188 in 2018. It predicts development from individuals who purchase progressive — or multifocal — lenses, eye exams, and contacts, per a 2021 investor production.