Warby Parker (WRBY) Morgan Stanley Global Consumer & Retail Conference summary

Strategic initiatives and business evolution

• Continued investment in omnichannel offerings, opening 40 stores annually, and planning for several hundred more in coming years.

• Focused on increasing brand awareness and scaled media mix, resulting in six consecutive quarters of accelerating active customer growth.

• Expanded into holistic eye care, scaling contact lens and eye exam offerings, and introduced higher-end products like precision progressives.

• Maintained strong digital experience and unique omnichannel model, leveraging AI for product recommendations.

• Significant growth in both eye exam and contact lens business, aiming to be a one-stop shop for vision care.

Financial performance and outlook

• Achieved accelerating top-line revenue growth: 10% two years ago, 12% last year, and guiding to 15% this year.

• Gross margins remain in the mid-50s, with glasses as the highest-margin product and progressives being most profitable.

• Adjusted EBITDA margin expanded by 330 basis points last year and guided for 170 basis points this year.

• Non-marketing SG&A as a percent of revenue improved by 330 basis points, reflecting operational efficiencies.

• Continued focus on leveraging corporate overhead and careful capital allocation for customer acquisition and store rollouts.

Industry trends and market dynamics

• Optical industry experienced volatility post-pandemic, with elongated repurchase cycles and lower demand in 2022–2023.

• Expecting normalization and potential pent-up demand to drive growth in coming years.

• Unique omnichannel and digital capabilities position the company to capture share as demand returns.

• Industry split between large retail chains and independent practices, with limited e-commerce innovation among competitors.

• Anticipates more stability and increased demand as consumers return for exams and new prescriptions.