Warby Parker Makes NYSE Debut, Valuation Soars To $6B

Warby Parker’s shares have soared more than 30 percent since the company went public through a direct listing on New York Stock Exchange this morning, giving the company a valuation of $6 billion.

The company’s shares began trading on NYSE at $54.72, more than $14 higher than the share reference price set by the stock exchange.

“What a lot of people don’t realize is how big the optical business is. It’s $140 billion. Here in the U.S., we’re about 1% market share,” co-founder Neil Blumenthal said Wednesday. “We still believe we’re in the first inning here.”

Warby Parker was founded 11 years ago as an online platform where consumers can shop for affordable prescription glasses. The company later went on to open brick-and-mortar stores that blurred the lines between the company’s online and in-store shopping experience.

“We started Warby Parker because we were frustrated consumers walking to an optical shop, walking out, feeling like we had been ripped off,” said Blumenthal. “The thought was if we could build our own brand and design our own glasses and go direct to customers. We could sell a product like the ones I’m wearing for $95, instead of $400 or $500,” he added.

Warby Parker today also offers services such as eye exams, vision tests and contact lenses.

The company saw its sales nosedive at the start of the pandemic, forcing the retailer to shutter its nearly 135 stores. The company has since seen its sales pickup with the reopening of its physical stores and an increase in digital sales.

“We’re offering great value to that customer segment, but it’s a newer part of our business, and it will create a lot of tailwinds for us going forward,” said co-founder Dave Gilboa.

Originally published at https://retailbum.com on September 29, 2021.