D2C glasses pioneer Warby Parker just went public — but it’s struggling to turn a profit
![Percey looks great on you [Maskot via Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/2eohfDvs8cNHbOLmYeSWDh_1_perceylooksgreatonyou.jpg)
Percey or Watts frame? Warby Parker shares jumped 35% yesterday after directly listing on public markets, giving the direct-to-consumer glasses giant a $6B valuation. Warby’s direct listing means it didn’t pay i-banks’ big fees to IPO, but released existing shares straight to investors. Last year, Warby’s sales grew faster than Ray Ban maker Luxottica’s, but the 11-year-old biz still isn’t profitable. It saw $394M in sales last year, but lost $56M.
Shifting focus… Warby started out 100% online, cutting out price-inflating middlemen to lower the combined cost of frames and prescription lenses to just $95. In 2013, Warby expanded into physical retail with stylish stores for a hybrid D2C experience with soul:
- At-home perks: Warby offers free home try-on of five pairs, virtual AR try-ons, 30-day returns, and online visits with specialists to extend prescriptions.
- Experiential retail: Warby’s 145 stores feature friendly barista-like employees, dedicated optometrists, and the aesthetic of a Wes Anderson movie.
- Values-based branding: Warby lasered in on social responsibility through its “Buy A Pair, Give a Pair” glasses-donation effort.
Customer love doesn’t always = profit… But it’s the first step. Warby pioneered a D2C growth formula built around online sales, engaging stores, and brand values — and other companies quickly copied it. D2C dynamos like Allbirds, Casper, Blue Apron, and Honest Company all followed Warby’s formula to hit unicorn valuations. But like Warby, they’re also still unprofitable. And investors don’t seem convinced: Casper’s stock is down 60% since its IPO, Honest’s is down 45%, and Blue Apron’s is down 95%.