Introduction: In 2010 four Wharton classmates—Dave Gilboa, Neil Blumenthal, Andy Hunt and Jeff Raider—pooled $120,000 (about $30,000 each) to launch Warby Parker, a direct-to-consumer eyewear brand that has since grown into a roughly $1.8 billion company. The brand disrupted a sizeable global eyewear market by combining affordable, design-forward frames with an omnichannel retail strategy.
Founding and early traction: The company began as a simple answer to overpriced designer glasses after Gilboa lost an expensive pair. Leveraging Blumenthal’s supplier connections, the founders launched online and quickly attracted media attention from Vogue and GQ. Early demand outstripped expectations—first-year sales targets were hit within weeks—and a converted office showroom led to the first physical store in Manhattan in 2013.
Business model shift and growth: While Warby Parker started online, brick-and-mortar locations now drive the bulk of revenue. The company operates 269 stores and last year retail accounted for more than two-thirds of sales—over $440 million—helped by in-store eye exams that raised average revenue per customer by more than 9%. The firm posted nearly $670 million in revenue last year and counts some 2.3 million active customers as of 2023.
Financial position and path to profitability: Despite its growth, Warby Parker remained unprofitable historically, but executives point to an adjusted EBITDA of about $52.4 million in the past year and no corporate debt. Analysts see a clear route to net profitability as retail and vision-care services scale, with the company planning continued store expansion—approximately 40 openings in the current year—and ambitions to reach several hundred more locations.
Outlook: Warby Parker aims to evolve into a holistic vision-care company, balancing physical retail expansion with a growing service offering to lift margins and customer lifetime value. In a fragmented $150bn-plus global eyewear market, the brand’s mix of design, accessibility and retail-driven services positions it to pursue further scale, though it will still face competition from industry giants and the challenge of sustaining profitable growth as it expands.