Eyeglass brand Warby Parker reveals widening losses in filing to go public

Warby Parker has either lost money or broken even for the past three years, the company revealed in a Securities and Exchange Commission filing to go public late Tuesday. The popular eyeglass brand — which is known for…

its fashionable and cheap eyewear — has seen losses grow alongside revenue, according to financials that were publicly detailed for the first time in its SEC filing.

The company’s net revenue grew from $272.9 million in 2018 to $370.5 million in 2019 and $393.7 million last year. At the same time, Warby Parker reported a net loss of $22.9 million in 2018 and $55.9 million last year. The spectacles shop broke even in 2019.

Warby Parker has continued to bleed money this year, losing $7.3 million in the six months ending June 30, according to the filing.

“We have a history of losses, and we may be unable to achieve or sustain profitability,” the company warned investors. “Any failure to adequately increase net revenue or manage operating costs could prevent us from achieving or sustaining profitability.”

But Warby Parker also argued that incurring losses was important to drive growth, adding that the company now has more than 145 stores across the US and Canada, as well as a robust online sales operation.

The company — which was valued at $3 billion during a funding round last year, according to the Wall Street Journal — is seeking a direct listing on the New York Stock Exchange.

The move would allow current investors like Tiger Global Management and General Catalyst sell their shares. But unlike an initial public offering, listing directly means Warby Parker will not bring in money from selling new shares.

In the filing, Warby Parker revealed that it generates…

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