There are 27 stores of which 12 are outside the US. You have to have a brick and mortar strategy. “In 2020, our digital channel represented 89% of our sales, while stores accounted for the other 11% of our sales (down from 17% in 2019).” The first store was opened in 2017. “All U.S. stores that were operating in 2019 generated approximately $4.3 million in average unit volume, or AUV, in their first 12 months of operation. We are in the early phase of a ramp towards hundreds of potential locations in the future, with strong unit economics.”
The omni-channel customer is the most valuable. “Across all cohorts and through June 30, 2021, our multi-channel repeat customers, who represented 12% of our total repeat customers as of such date, on average spent approximately 1.5 times more than our single-channel repeat customers.“
The customers are loyal. “Approximately 53% of our net sales in 2020 came from repeat customers, which we define as customers who have made a prior purchase with us in any period (it was 41% in 2018).”
They’re not profitable. “We reported net losses of $14.5 million and $25.9 million and adjusted EBITDA of $(1.3) million and $(15.4) million in 2019 and 2020, respectively.” Revenue has grown through covid. “our net revenue has increased from $126.0 million in 2018 to $193.7 million in 2019 and to $219.3 million in 2020.”
International sales are important. “In 2020, 24% of our net revenue came from outside the United States, signaling a strong foundation from which to scale our business globally.”
$204mm+ raised. $269mm of total capital has been raised when including additional paid-in capital. $126mm of cash sits on the books so net investment is $142mm. There is no debt.
Warby Parker insights from prospectus
Stores are the best marketing spend. “we find that there is significant interplay across online and offline channels — browsing online might lead to a visit in one of our more than 145 stores and end with a purchase via our e-commerce app. On average, we have observed total market sales increase over 250% in the first year after opening the first retail store in that market. During the first year of opening, e-commerce sales growth slows as the market rebalances between online and store sales. After this initial period, we see e-commerce growth rates normalize to the same level as our purely e-commerce markets that have no store presence. For example, our total sales in Atlanta grew over 295% in the year following our first store opening in September 2014, while e-commerce sales declined by 3% over the same period. In the following two years, e-commerce sales growth normalized to 32% and 33%, respectively. As of June 30, 2021, we now have three stores in the Atlanta market.”
Best in class store performance. “Our retail stores are highly productive and we have historically targeted, and continue to target, Four-Wall Margins of 35% and Average Sales Per Square Foot of $2,900. We plan to open over 30 to 35 new retail stores in 2021 and will seek to continue this pace of rollout into the foreseeable future.”
Vertical integration with outsourced manufacturing. “We design and sell glasses under our own brand name. Our integrated supply chain consists of owned optical and fulfillment laboratories as well as third-party manufacturing and laboratory partnerships that we have built over the years and gives us control over product quality and fulfillment speed.”
$500mm+ of capital raised. $633mm of total capital has been raised when including additional paid-in capital. $314mm of cash sits on the books so net investment is $319mm. There is no debt.
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