Warby Parker to Open 40 New Doors as Losses Mount

Warby Parker (New York) plans to open 40 new stores in the year ahead, which would expand its physical footprint to 201 locations.

That was the good news from the eyewear maker’s fourth quarter earnings announcement last week. The bad news is the company posted a $45.9 million loss during the quarter, pushing its net loss for the year to $144.3 million. Its deficit for 2020 was $88.4 million.

Warby Parker attributed the higher losses to a large increase in selling, general and administrative (SG&A) costs, specifically stock-based compensation expenses and related employer payroll taxes. The company has either reported a loss or broken even every year since 2018.

Other fourth quarter and full-year highlights include:

• Full year net revenue increased $147.1 million, or 37.4%, to $540.8 million compared to full year 2020 and increased 46.0% compared to full year 2019.
• Fourth quarter net revenue increased $20.1 million, or 17.8%, to $132.9 million compared to the fourth quarter of 2020 and increased 41.9% compared to the fourth quarter of 2019.
• Increased active customers 21.5% to 2.20 million year over year.
• Average revenue per customer increased 13.0% year over year to $246.
• Became the first public benefit corporation to go public through a direct listing (in September).