A Warby Parker store at The Standard, Los Angeles, California.
Michael Buckner | Getty Images
Warby Parker eyewear brand has lost money or lost its profits in the last three fiscal years, and has warned it may face infringement while trying to make a profit as a public company, according to documents filed with regulators on Tuesday. of values.
The retailer, which is best known for selling lower-priced, trendy prescription glasses, is gearing up to debut on Wall Street. He said in January that he had confidentially applied for a stock quote in the US
With its initial public offering, Warby Parker is expected to join a growing list of consumer-oriented brands that will soon be marketed on Wall Street. Jessica Alba’s honest company and medical scrub maker Figs have recently gone public. According to reports, the Sweetgreen salad chain has been confidentially filed for a IPO and the Allbirds brand is also preparing for one.
Over the past three years, Warby Parker’s sales have grown, but so have its losses. Warby Parker’s net income in fiscal years ended December 31, 2018, 2019 and 2020 was $ 272.9 million, $ 370.5 million and $ 393.7 million, respectively, according to documents submitted to the U.S. Securities and Exchange Commission.
Its net loss was $ 22.9 million in 2018 and $ 55.9 million in 2020. It was unbalanced in 2019, the company told regulators.
Warby Parker said he has continued to lose money in recent months. It lost $ 7.3 million in the six months ended June 20. As of that date, the company had a cumulative deficit of $ 356.3 million.
“Because we have a short, large-scale operating history, it is difficult for us to predict our future operating results,” the company said in the presentation. “We will have to generate and maintain an increase in revenue and manage our costs to achieve profitability. Even if we do, we may not be able to maintain or increase our profitability.”
The direct consumer brand, founded in 2010, originally sent customers glasses to try on from the comfort of home. However, it has expanded beyond an online-only operation, opening stores and making it possible for customers to pick up purchases in person. The strategy could help the company reduce e-commerce costs, from shipping to return.
According to the presentation, it has grown to over 145 stores.
Almost all of Warby Parker’s revenue, 95% of the fiscal year ended December 31, 2020, comes from the sale of glasses. Only 2% comes from the sale of contacts.
In the presentation, the company said it has unique advantages over competitors. Among them, he was said to have generated a following of followers. On average, he said customers acquired between 2015 and 2019 had a sales retention rate of approximately 50% in the first two years of their first purchase and a sales retention rate of almost 100% in four years.
The launch has earned the trust of the people who made weight in Silicon Valley. It raised $ 120 million in its most recent round of funding in 2020, which gave it a value of $ 3 billion, according to PitchBook data.
Its shareholders will include some of these investors, Tiger Global, T. Rowe Price, General Catalyst, D1 Capital Partners and Durable Capital, according to the presentation.
—CNBC Lauren Thomas has contributed to this report.