Warby Parker's $1B valuation is in plain sight ...........................

[Chris Ryser]

BY BLOOMBERG NEWS
MARCH 5, 2015 6:52 A.M.

Warby Parker's $1B valuation is in plain sight

(Bloomberg) -- Warby Parker Retail Inc., the eyeglass retailer known for its inexpensive and stylish frames, could be the latest startup to join the $1 billion club.
The company has been approached by funds looking to buy a stake, people with knowledge of the matter said. Those potential investors are willing to value Warby Parker at more than $1 billion, said the people, who asked not to be identified discussing private information. At that level, Warby Parker's valuation would be about double what it received in 2013, the people said.
While Warby Parker isn't currently holding a formal fundraising process, the demand may precipitate a new financing round that would close quickly, the people said. That interest indicates investors' willingness to bet on the potential growth—and accept the potential risks—of a startup company in the context of a low-interest-rate environment.
A representative for Warby Parker declined to comment.


Warby Parker—which started as an online retailer five years ago—would join a growing class of private companies with valuations of $1 billion or more. According to data by CB Insights, a research firm in New York, 54 VC-backed startups reached that threshold in the past two years. It is also among a handful of New York-based startups that have attracted millions in private capital, including e-commerce sites Gilt Groupe Inc. and Etsy Inc.
Founded by Neil Blumenthal and Dave Gilboa, who wanted to find a way to provide relatively affordable, stylish eyeglasses and sunglasses, Warby Parker started online and then migrated to brick-and-mortar, with its glasses now sold in 18 locations across the U.S.


Ray-Ban

The eyeglass industry has traditionally been controlled by a few large players, led by Italy's Luxottica Group SpA, owner of the Ray-Ban brand and of retail chain LensCrafters. Luxottica has annual sales of more than $10 billion, and a market value of 26 billion euros ($29 billion).
Warby Parker competes by offering its frames for as little as $ XXX each. The company also donates a portion of its sales to nonprofits that provide glasses to low-income communities. It's qualified as a B Corporation, a certification that requires it to hold itself accountable for these commitments.
The company is backed by Mickey Drexler, the chairman and chief executive officer of J.Crew Group Inc., as well as American Express Co., according to venture capital database CrunchBase. The company also counts Spark Capital, General Catalyst Partners and Tiger Global Management as investors, the database shows.

source:
http://www.crainsnewyork.com/article...in-plain-sight

[erichwmack]

$1B seems crazy

[idispense]

And that's why, if you want to be in the optical business, you would do well to ask yourself: "do you want to be worth 1 billion in 5 years time, or do want to be making your last payment on a 5 year old car ? "

Stuck in a box banging your head against brick walls, Licenses, CE credits, debt, or 1 billion $ ?

[Chris Ryser]

And that's why, if you want to be in the optical business, you would do well to ask yourself: "do you want to be worth 1 billion in 5 years time, or do want to be making your last payment on a 5 year old car ? "

Stuck in a box banging your head against brick walls, Licenses, CE credits, debt, or 1 billion $ ?

There was once a Mr.Hardy that got similar write ups or made them himself, plus all the statistics that were sent out .................and most comments on OptiBoard was that he was making no profits, and would be bankrupt soon.

Essilor paid him $ 43 million and is now advertising that same company even in Europe in daily newspapers all over. With a full net of labs spread world wide they own they will not need a centralized location (Vancouver) anymore soon.

Maybe Warby Parker is banking on something similar with one of the optical manufacturing giants. In the meantime they are selling big time what the traditional optical retail is not and donate a frame to some needy countries on top of it.

Warby Parkers Website ranking

Global 6,515 2,290 Rank in United States1,523

Which 4 times better than the global ranking of Luxottica as the best ranking optical website.

[idispense]

430 million Canadian ...... http://www.bloomberg.com/news/articl...or-387-million.

[Lab Insight]

There was once a Mr.Hardy that got similar write ups or made them himself, plus all the statistics that were sent out .................and most comments on OptiBoard was that he was making no profits, and would be bankrupt soon.

Essilor paid him $ 43 million and is now advertising that same company even in Europe in daily newspapers all over. With a full net of labs spread world wide they own they will not need a centralized location (Vancouver) anymore soon.

Maybe Warby Parker is banking on something similar with one of the optical manufacturing giants. In the meantime they are selling big time what the traditional optical retail is not and donate a frame to some needy countries on top of it.

Warby Parkers Website ranking

Global 6,515 2,290 Rank in United States1,523

Which 4 times better than the global ranking of Luxottica as the best ranking optical website.

In fact, the CC lab in Vancouver has had almost all edgers removed and moved to the E location in Etobicoke.

[Chris Ryser]

In fact, the CC lab in Vancouver has had almost all edgers removed and moved to the E location in Etobicoke.

Interesting ...........and more central for easier delivery.

[Chris Ryser]

When E purchases WP they will not only be the largest optical manufacturer, but also by far the largest on-line retailer world wide, with top quality products at near wholesale prices, but without any personal hands on services.

When is this going to be sinking in at the retail level ? ...............and when is it starting measures to adapt to a very possible future ?

[Lab Insight]

When E purchases WP they will not only be the largest optical manufacturer, but also by far the largest on-line retailer world wide, with top quality products at near wholesale prices, but without any personal hands on services.

When is this going to be sinking in at the retail level ? ...............and when is it starting measures to adapt to a very possible future ?

If there was ever any doubt....

NIKON-ESSILOR CELEBRATES 15 YEARS TOGETHER!

• THURSDAY, FEBRUARY 26 2015

Fifteen years ago, Nikon and Essilor partnered to bring new high-end products to the market and to speed up Nikon’s expansion into Japan and around the world.
Their joint venture has produced a series of innovations, including high-index lenses (1.74), SeeCoat Blue coating, which filters blue light, the SeeMAX lens, customized single vision lenses and digital tinting.
In 2009, the partners founded the Nikon-Essilor International Joint Research Center, which focusses on long-term innovation in fields like opto-electronics, precision optics and advanced materials.
Over 1,000 staff work for Nikon-Essilor, which hopes to increase its presence in the newer markets such as the Middle East, Russia and Turkey.

[drk]

If you know the optical world, you know that WP is not worth a billion dollars in any stretch of the imagination. We're the "insiders".

This goes to show what a load of crap the stock market is.

[Uncle Fester]

If you know the optical world, you know that WP is not worth a billion dollars in any stretch of the imagination. We're the "insiders".

This goes to show what a load of crap the stock market is.

The Emperor has no clothes but he is wearing a cheap but trendy looking pair of specs!

Did you catch the Shark Tank episode where Mark Cuban gushes about the margins of WP?

Sounds like the Street is doing the old pump and dump...again.

What's their P/E?

[drk]

Warby Parker is riding the ephemeral wave of cheap Chinese plastic, hipster style, and the youth-internet-phone movement. This will only last for a window of opportunity.

If crappy glasses had a future, we'd see even more than we already do, because crap's been around forever.

It...doesn't...work. Sure, one-off. Sure, some will settle when the bill is minimal. But fundamentally it's not going to work.

Sucker investment.

[Lab Insight]

Warby Parker is riding the ephemeral wave of cheap Chinese plastic, hipster style, and the youth-internet-phone movement. This will only last for a window of opportunity.

If crappy glasses had a future, we'd see even more than we already do, because crap's been around forever.

It...doesn't...work. Sure, one-off. Sure, some will settle when the bill is minimal. But fundamentally it's not going to work.

Sucker investment.

As we are insiders to our industry, we know it's all smoke and mirrors on a thin narrow platform. But it's working...for now.

Coastal was proof that although they made zero profit and lost millions per year consecutively, some company would come along, pay top dollar and devour it. And one did. WB is no different in my opinion.

It's market share and volume that they want. Even if the Warby product is inferior and customer base is a bunch of modern hippies, crap in vast volume in the form of market share is worth something to investors and attracts a lot of interest from all levels.

Just a matter of time before we see the press release that they've been acquired.

Anyone interested in starting up a lost leader? If we could get 500 offices in N.A. to chip in $2K and send 3 jobs per day minimum each, it would establish a single lens source lab that would provide products to it's own investors at a cost plus model. The original $2K investment would be would be realized and provided back to each member within a few months.

Then sell it in 5 years.

[racethe1320]

Warby Parker is riding the ephemeral wave of cheap Chinese plastic, hipster style, and the youth-internet-phone movement. This will only last for a window of opportunity.

If crappy glasses had a future, we'd see even more than we already do, because crap's been around forever.

It...doesn't...work. Sure, one-off. Sure, some will settle when the bill is minimal. But fundamentally it's not going to work.

Sucker investment.

Devils advocate here......I disagree. The quality is only going to get better and the younger generation is only going to embrace this "crap" as you call it more. Just look around at the brand more so than the fact that they are more online than B&M.

[Chris Ryser]

If crappy glasses had a future, we'd see even more than we already do, because crap's been around forever.

It...doesn't...work. Sure, one-off. Sure, some will settle when the bill is minimal. But fundamentally it's not going to work.

Sucker investment.

drk .................... you might be right, but you also might be wrong. Scrap in our eyes might not be crap in some else s, maybe just only a good deal.

Remembering so many OptiBoard posts on Coastal being at 1 minute before bankruptcy because they could make no profit, the worlds largest optical corporation paid them good money for an operation that was a total loss to many OptiBoarders.

Warby Parker will most probably go the same way as Coastal if a good combination of the two is feasible to the goal of big optical business.
Probably at a price that is convenient to both parties.

If a large corporation is selling their goods on-line at or near the prices, they sell to the retail market it does not look that they are playing poker with their money. I would guess that every move done has been studied profoundly in every detail in advance.

[COMEINPEACE]

I just had the pleasure of having a wp frame (zyl) purchaser come in this saturday for an adjustment.
the temples were so so wide (from the hinges) that there was going to be a little effort involved in making them wearable for this 20something female.
i quoted an adjustment fee of, what i thought was extremely reasonable...$18
she stormed out...
hopefully there will always be a market for QUALITY eyewear with personalized attention....hopefully

[drk]

Devils advocate here......I disagree. The quality is only going to get better and the younger generation is only going to embrace this "crap" as you call it more. Just look around at the brand more so than the fact that they are more online than B&M.

Ha! As if quality is getting better in lab work in general!

But you're right, as to it's "brand worthiness" I will not poo-poo. It may be a hot brand for now, and maybe later. But that's...whatever.

As to "the younger generation"...they get older. Then another "younger generation" comes by, equally naiive, but with their own goofy tastes.

We were all young and goofy, so it's not rocket surgery.

[drk]

drk .................... you might be right, but you also might be wrong. Scrap in our eyes might not be crap in some else s, maybe just only a good deal.

Remembering so many OptiBoard posts on Coastal being at 1 minute before bankruptcy because they could make no profit, the worlds largest optical corporation paid them good money for an operation that was a total loss to many OptiBoarders.

Warby Parker will most probably go the same way as Coastal if a good combination of the two is feasible to the goal of big optical business.
Probably at a price that is convenient to both parties.

If a large corporation is selling their goods on-line at or near the prices, they sell to the retail market it does not look that they are playing poker with their money. I would guess that every move done has been studied profoundly in every detail in advance.

I think you're right: build the "platform" and someone will pay you for it. Usually some company that is interested in covering their market domination at the expense of what's been traditionally considered "the right thing to do". (How quaint that seems, now.)

[Johns]

Maybe this would be a good time to mention that if anyone is interested, I've got a URL for sale: ParbyWalker.com
(seriously)

[Paul Smith LDO]

Ha! As if quality is getting better in lab work in general!

But you're right, as to it's "brand worthiness" I will not poo-poo. It may be a hot brand for now, and maybe later. But that's...whatever.

As to "the younger generation"...they get older. Then another "younger generation" comes by, equally naiive, but with their own goofy tastes.

We were all young and goofy, so it's not rocket surgery.

Many consumers have been wearing ill fitting frame and lenses for years, only at a higher price point. We can stand and point fingers at the usual suspects but how can you expect the lay man to discern that their eyewear is improperly made. Naivete, perhaps, but if that is all anyone has ever known how can we expect them to know better. Somewhere J Q Public, has to be notified and educated about the pros and cons of the good, bad, and the ugly of our industry. In the mean time, we have to fight the stigma that many have labeled us.

[drk]

That's where good business reputation comes in handy. Or even certification/degrees.

I guess you're right: if you're wearing/seeing through shoddy glasses, you don't want to overpay for that privilege.

[edKENdance]

After watching The Wolf of Wall Street last night this post is coloured all Steve Madden.

[optimensch]

It is noteworthy that a number of onliners, WP included, are opening shops. Bailey Nelson (Canada, Australia, UK), Jimmy Fairly (France)...and others are blending an online shop with brick/mortar in a pretty holistic way. They are all fairly copy/paste in terms of look but slick and current.

With a well-documented and publicized BILLION$ valuation, WP will be pointed to by many startups seeking investor money. The barriers are pretty low and it appears to be the wild west out there.

As long as NASDAQ pushes higher and interest rates stay low there will be plenty of fuel to keep this balloon floating....

In the meantime ... Essilor still has not "divested" itself of the Clearly Contacts shops already opened in Vancouver and Toronto....On a webinar last spring (OD WIRE) they said they would....MON OEIL as they say in Paris.

[Chris Ryser]

In the meantime ... Essilor still has not "divested" itself of the Clearly Contacts shops already opened in Vancouver and Toronto....On a webinar last spring (OD WIRE) they said they would....MON OEIL as they say in Paris.

Essilor is not a back tracking company..............it is a forward looking organization that is studying every move they intend to make into the smallest details that will or could be to their advantage.

They are now in total by far the largest on-line retailer world-wide and according to Coastal s last estimate before the E takeover was 27 million pairs of glasses to be made by all the major ones in North America during 2014.

Most of the on-line optical websites are showing now an increase of 10 to 15% more traffic which would indicate that sales will be up a few more millions during this year.

The physical store they have started for now are just showrooms for their advertised models, but with the refusal of the optical retail industry of giving a service against a fee for fitting and adjusting, those stores soon enough will have employees that have been trained to fit glasses and maybe more.

I just asked GOOGLE for "on-line Glasses" and the results was:

About 189,000,000 results (0.32 seconds)

[drk]

You go to extremes to make your solitary point, Chris.

"Opticals should do services not tied to supply of materials."

I say that's perhaps a nice promotional effort, but in no way provides a future for opticianry.

The future of opticianry is important for the future of good vision care. We can't have websites and a bunch of trained pupillometer/felt-tip marker monkeys or kiosk-bots providing vision care for our country.

I'd like to think we have higher standards than that. Maybe for Botswana.