Dive Brief:
Warby Parker records first quarterly net profit following public listing.
Let's dive right in:Warby Parker, the renowned eyewear brand, recently reported a 12% boost in its first-quarter net revenue to an impressive $223.8 million, exceeding expectations. The number of active customers increased by 8.7% to a staggering 2.57 million. In a thrilling turn of events, Warby Parker posted its first-ever positive quarterly net income as a public company, raking in $3.5 million - a significant success compared to a loss of approximately $2.7 million in Q1 2024. The company even managed to open 11 new stores, ending the quarter with a total of 287 locations.
Dive Insight:
Here's the scoop:Tariffs have been creating ripples in the business world, and during Warby Parker's earnings call, this hot topic was a mainstay. Co-founder and co-CEO Neil Blumenthal remained confident, noting that the company has navigated challenging environments in the past. With tariffs on Chinese goods imported to the U.S. sitting at 145% and a global baseline tariff of 10%, Warby Parker has been taking action to minimize its exposure.
The company has already tweaked its supply chain, aiming to reduce Chinese-origin costs from around 20% to less than 10% prior to year-end. Warby Parker is forging partnerships outside China in Europe and Asia for frame production, while lens sourcing is being shifted outside China, with more work happening in the U.S.
It's not just the company that's feeling the pinch; Warby Parker customers are also facing price changes. The brand has increased pricing on certain lens types and some accessories to offset the tariff-related expenses. This targeted increase is estimated to result in a low single-digit price hike across the business.
While the company continues to invest in marketing, it's tightening its belts elsewhere, such as slowing down hiring. If the current tariff plan stays in place, the anticipated impact on Warby Parker is about $40 million to $50 million. However, with its intervention efforts, the company expects to mitigate this potential exposure.
Following news in February, Warby Parker announced plans to open shop-in-shops with Target. These shops, which will number five by the second half of the year, will be staffed by Warby Parker employees and will offer eye exam services. Warby Parker's co-founder and co-CEO, Dave Gilboa, shared that this strategy "will be a continuation of what we do every single day," emphasizing the complementary nature of this expansion alongside its stand-alone store growth.
- The environment of Warby Parker's business, affected by tariffs, saw Chinese-origin costs being reduced from around 20% to less than 10% before the end of the year.
- Warby Parker's first-quarter net revenue in 2025 surged by 12%, reaching $223.8 million, with an increase of 8.7% in active customers to 2.57 million.
- The industry of eyewear witnessed unexpected developments as Warby Parker posted its first-ever positive quarterly net income as a public company, generating $3.5 million.
- The finance sector will keep a close eye on Warby Parker as it anticipates an impact of $40 million to $50 million due to the current tariff plan, but expects to mitigate this exposure through intervention efforts.
- Another significant move in the business world was Warby Parker's announcement in February to open shop-in-shops with Target, with five such shops anticipated by the second half of the year.
- In the midst of these changes, Warby Parker is balancing its expenses by slowing down hiring and increasing pricing on certain lens types and accessories to offset tariff-related expenses.
- Beyond its partnership with Target, Warby Parker co-founder and co-CEO, Dave Gilboa, highlighted that the expansion of shop-in-shops will complement the growth of its stand-alone stores.
