Warby Parker locations now open in Targets
The boutique-style space in Bloomington quietly began serving customers last week, holding a grand opening Saturday complete with blue balloons and giveaways.
Even so, the new setup drew a steady stream of curious Target customers on Saturday looking for an eye exam or a fresh pair of frames.
"Our goal has always been to make eyewear and eye care as accessible and convenient as possible," said Sandy Gilsenan, chief retail and customer experience officer at Warby Parker. "From the beginning, Target's customer-first mindset made them a natural partner for us."
Target is known for brand partnerships, from limited ones like Lilly Pulitzer to permanent deals such as CVS pharmacy and Hearth and Home by Joanna Gaines of HGTV fame.
Warby Parker and Target announced the partnership in February. Three other shop-in-shops will open in select Targets toward the end of the summer, with more expected in 2026.
In the weeks before the launch, passersby could catch glimpses of Warby Parker's signature blue peeking out from behind branded paper covering the storefront.
The eyewear company now has seven locations in Minnesota. The addition of Warby Parker at Target marks a second location in Bloomington.
Similar to Target's owned brands, Warby Parker frames are focused on affordability and designer-quality alternatives.
The Target shops are staffed and stocked by the eyewear company. Target acts more as a landlord, similar to its arrangement with CVS and Target Optical.
Each store will offer Warby Parker's full assortment of eyewear and optical services, including glasses, sunglasses, contacts, eye exams and vision tests.
Target Optical, operated by EssilorLuxottica since 2004, carries popular brands like Ray-Ban and Oakley. The Warby Parker locations will not have Target Optical hubs, which can be found at more than 500 stores.
Some analysts, who have perceived a lack of consistent newness in Target's inventory, say the Warby Parker partnership makes sense.
"(The partnership) shows some good thinking on the part of Target. However, a lot more of this is needed to move the dial," said Neil Saunders, managing director of GlobalData Retail. "Newness also needs to extend to the core products and brands as this is where some staleness has crept in."
At the end of the day, eyewear is not a core product at Target, he said.
The company has pledged to bring more newness to product assortment as part of its growth strategy, driven largely by partnerships with other companies.
"There's so much newness across discretionary, like our new Pillowfort collections, featuring Disney and Marvel ... or the exciting Warby Parker partnership," Rick Gomez, chief commercial officer at Target, said in a March earnings call.
In April, Target rolled out a limited-time collection with Kate Spade, followed more recently by a collaboration with Champion to bring in activewear and sporting goods for adults and kids.
Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
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Average Revenue per Customer is defined as the sum of the total net revenues in the preceding 12-month period divided by the current period Active Customers. Non-GAAP Financial Measures We use Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cost of Goods Sold ('Adjusted COGS'), Adjusted Gross Margin, Adjusted Gross Profit, Adjusted Selling, General, and Administrative Expenses ('Adjusted SG&A'), and Free Cash Flow as important indicators of our operating performance. Collectively, we refer to these non-GAAP financial measures as our 'Non-GAAP Measures.' The Non-GAAP Measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. Adjusted EBITDA is defined as net (loss) income before interest and other income, taxes, and depreciation and amortization as further adjusted for asset impairment costs, stock-based compensation expense and related employer payroll taxes, amortization of cloud-based software implementation costs, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net revenue. Adjusted COGS is defined as cost of goods sold adjusted for stock-based compensation expense and related employer payroll taxes. Adjusted Gross Profit is defined as net revenue minus Adjusted COGS. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue. 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We have not reconciled our Adjusted EBITDA Margin guidance to GAAP net (loss) income margin, or net margin, or Adjusted EBITDA guidance to GAAP net (loss) income because we do not provide guidance for GAAP net margin or GAAP net (loss) income due to the uncertainty and potential variability of stock-based compensation and taxes, which are reconciling items between GAAP net margin and Adjusted EBITDA Margin and GAAP net (loss) income and Adjusted EBITDA, respectively. Because such items cannot be reasonably provided without unreasonable efforts, we are unable to provide a reconciliation of the Adjusted EBITDA Margin guidance to GAAP net margin and Adjusted EBITDA guidance to GAAP net (loss) income. However, such items could have a significant impact on GAAP net margin and GAAP net (loss) income. About Warby Parker Warby Parker (NYSE: WRBY) was founded in 2010 with a mission to inspire and impact the world with vision, purpose, and style–without charging a premium for it. Headquartered in New York City, the co-founder-led lifestyle brand pioneers ideas, designs products, and develops technologies that help people see, from designer-quality prescription glasses (starting at $95) and contacts, to eye exams and vision tests available online and in our 298 retail stores across the U.S. and Canada. Warby Parker aims to demonstrate that businesses can scale, do well, and do good in the world. Ultimately, the Company believes in vision for all, which is why for every pair of glasses or sunglasses sold, it distributes a pair to someone in need through its Buy a Pair, Give a Pair program. To date, Warby Parker has worked alongside its nonprofit partners to distribute more than 20 million glasses to people in need. Selected Financial Information Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except par value) June 30, 2025 Assets Current assets: Cash and cash equivalents $ 286,384 $ 254,161 Accounts receivable, net 1,139 1,948 Inventory 43,268 52,345 Prepaid expenses and other current assets 15,306 17,592 Total current assets 346,097 326,046 Property and equipment, net 177,156 170,464 Right-of-use lease assets 170,240 171,284 Other assets 8,406 8,696 Total assets $ 701,899 $ 676,490 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 26,037 $ 23,519 Accrued expenses 60,571 51,609 Deferred revenue 21,522 32,358 Current lease liabilities 24,632 20,235 Other current liabilities 2,771 2,633 Total current liabilities 135,533 130,354 Non-current lease liabilities 203,747 205,120 Other liabilities 1,168 943 Total liabilities 340,448 336,417 Commitments and contingencies Stockholders' equity: Common stock, $0.0001 par value; Class A: 750,000 shares authorized at June 30, 2025 and December 31, 2024, 105,012 and 102,889 issued and outstanding at June 30, 2025 and December 31, 2024, respectively; Class B: 150,000 shares authorized at June 30, 2025 and December 31, 2024, 16,946 and 17,961 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively, convertible to Class A on a one-to-one basis 12 12 Additional paid-in capital 1,048,699 1,029,220 Accumulated deficit (685,501 ) (687,221 ) Accumulated other comprehensive loss (1,759 ) (1,938 ) Total stockholders' equity 361,451 340,073 Total liabilities and stockholders' equity $ 701,899 $ 676,490 Expand Warby Parker Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net revenue $ 214,475 $ 188,222 $ 438,257 $ 388,225 Cost of goods sold 100,866 82,840 198,668 169,384 Gross profit 113,609 105,382 239,589 218,841 Selling, general, and administrative expenses 118,134 114,338 241,643 232,924 Interest and other income, net 1,984 2,567 4,439 5,123 (Loss) income before income taxes (2,541 ) (6,389 ) 2,385 (8,960 ) Provision for income taxes (789 ) 373 665 481 Net (loss) income $ (1,752 ) $ (6,762 ) $ 1,720 $ (9,441 ) Earnings per share: Basic $ (0.01 ) $ (0.06 ) $ 0.01 $ (0.08 ) Diluted $ (0.01 ) $ (0.06 ) $ 0.01 $ (0.08 ) Weighted average shares outstanding: Basic 122,565 120,086 122,257 119,615 Expand Warby Parker Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (Amounts in thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net income (loss) $ 1,720 $ (9,441 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 24,648 21,704 Stock-based compensation 21,229 27,879 Non-cash charitable contribution 2,821 2,196 Asset impairment charges 486 421 Amortization of cloud-based software implementation costs 1,488 2,008 Change in operating assets and liabilities: Accounts receivable, net 809 571 Inventory 9,077 8,888 Prepaid expenses and other assets 1,085 (61 ) Accounts payable 1,846 1,384 Accrued expenses 10,752 5,187 Deferred revenue (10,836 ) (10,565 ) Lease assets and liabilities 4,067 1,956 Other liabilities 365 (577 ) Net cash provided by operating activities 69,557 51,550 Cash flows from investing activities Purchases of property and equipment (32,438 ) (32,088 ) Investment in optical equipment company — (2,000 ) Net cash used in investing activities (32,438 ) (34,088 ) Cash flows from financing activities Proceeds from stock option exercises 117 2,639 Shares withheld for taxes on stock-based compensation (6,361 ) — Proceeds from shares issued in connection with employee stock purchase plan 1,169 1,068 Net cash (used in) provided by financing activities (5,075 ) 3,707 Effect of exchange rates on cash 179 (105 ) Net change in cash and cash equivalents 32,223 21,064 Cash and cash equivalents, beginning of period 254,161 216,894 Cash and cash equivalents, end of period $ 286,384 $ 237,958 Supplemental disclosures Cash paid for income taxes $ 643 $ 345 Cash paid for interest 176 92 Non-cash investing and financing activities: Purchases of property and equipment included in accounts payable and accrued expenses $ 4,645 $ 4,089 Expand Warby Parker Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures (Unaudited) The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP measure, which is net (loss) income: (1) Represents expenses related to the Company's equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions. For both the three months ended June 30, 2025 and 2024, the amount includes $0.3 million of employer payroll taxes associated with releases of RSUs and option exercises. For the six months ended June 30, 2025 and 2024, the amount includes $0.9 million and $0.5 million, respectively, of employer payroll taxes associated with releases of RSUs and option exercises. (2) Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in both May 2025 and May 2024 to the Warby Parker Impact Foundation. (3) Represents costs related to the implementation of major new enterprise software systems. (4) Represents one-time inventory write-downs primarily related to the decision to sunset our Home-Try On program at the end of this year. (5) Expand Warby Parker Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures (Unaudited) The following table presents our non-GAAP, or adjusted, financial measures for the periods presented as a percentage of revenue. Each cost and operating expense is adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs. Warby Parker Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures (Unaudited) The following table reflects a reconciliation of each non-GAAP, or adjusted, financial measure to its most directly comparable financial measure prepared in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (unaudited, in thousands) (unaudited, in thousands) Cost of goods sold $ 100,866 $ 82,840 $ 198,668 $ 169,384 Adjusted to exclude the following: Stock-based compensation expense (1) 311 285 584 529 Inventory write-downs (2) 2,456 — 2,456 — Adjusted Cost of Goods Sold $ 98,099 $ 82,555 $ 195,628 $ 168,855 Gross profit $ 113,609 $ 105,382 $ 239,589 $ 218,841 Adjusted to exclude the following: Stock-based compensation expense (1) 311 285 584 529 Inventory write-downs (2) 2,456 — 2,456 — Adjusted Gross Profit $ 116,376 $ 105,667 $ 242,629 $ 219,370 Selling, general, and administrative expenses $ 118,134 $ 114,338 $ 241,643 $ 232,924 Adjusted to exclude the following: Stock-based compensation expense (1) 8,851 13,812 21,579 27,883 Non-cash charitable donation (3) 2,821 2,196 2,821 2,196 System implementation costs (4) 346 — 346 — Other costs (5) 1,341 168 1,866 1,303 Adjusted Selling, General, and Administrative Expenses $ 104,775 $ 98,162 $ 215,031 $ 201,542 Net cash provided by operating activities $ 40,199 $ 31,624 $ 69,557 $ 51,550 Purchases of property and equipment (16,286 ) (17,651 ) (32,438 ) (32,088 ) Free Cash Flow $ 23,913 $ 13,973 $ 37,119 $ 19,462 Expand (1) Represents expenses related to the Company's equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions. For both the three months ended June 30, 2025 and 2024, the amount includes $0.3 million of employer payroll taxes associated with releases of RSUs and option exercises. For the six months ended June 30, 2025 and 2024, the amount includes $0.9 million and $0.5 million, respectively, of employer payroll taxes associated with releases of RSUs and option exercises. (2) Represents one-time inventory write-downs primarily related to the decision to sunset our Home-Try On program at the end of this year. (3) Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in both May 2025 and May 2024 to the Warby Parker Impact Foundation. (4) Represents costs related to the implementation of major new enterprise software systems. (5) Represents restructuring costs incurred in the second quarter of 2025 and charges for certain legal matters outside the ordinary course of business. Expand Source: Warby Parker Inc.
