Warby Parker Conference Call Summary Company Overview - Warby Parker is a mission-driven vision care and lifestyle brand, recognized as a direct-to-consumer (DTC) pioneer in the eyeglasses category [1][2] Industry Insights - The U.S. vision care market is valued at approximately $68 billion, with a significant portion of Americans requiring corrective vision care products [4] - The market is divided between large optical chains and independent optical shops, with consolidation leading to limited competition and high prices [5] - Most glasses in the U.S. are marked up 10 to 20 times their manufacturing cost, and 75% of glasses are sold at the same location as eye exams, creating a lack of transparency in pricing [5][6] Company Performance - Warby Parker has achieved nearly $800 million in revenue, with a low teens growth rate over the past few years [3] - The company is guiding for 12% to 14% growth in Q2 and 13% to 15% for the full year, a slight reduction from previous expectations [9][10] Competitive Advantages - Warby Parker offers high-quality glasses at a price point of $95, which has remained unchanged since its launch in 2010, contrasting with competitors who have consistently raised prices [6][7] - The company has expanded its product assortment to include progressive lenses and contact lenses, appealing to a broader market [7][12] Growth Strategy - Plans to open 45 new stores in 2025, including five stores within Target locations [11][37] - Focus on expanding complex lens types and enhancing the vision care offering, which includes contacts and eye exams [12][13] Partnership with Google - Warby Parker announced a partnership with Google to develop AI-powered smart glasses, aiming to transform user interaction with technology [14][15] - The glasses are expected to provide real-time contextual information and be aesthetically appealing for everyday use [18] Tariff Mitigation Strategies - The company has reduced its sourcing from China from 20% to less than 10% to mitigate the impact of tariffs, which previously could have cost $40 million to $45 million [21][22] - Strategies include reallocating supply globally, implementing selective price increases, and maintaining expense discipline [23][24][25] Vision Insurance and Eye Exams - Vision insurance represents about 7% of Warby Parker's revenue, with efforts to increase awareness and utilization among insured customers [38][41] - Eye exams are growing rapidly, with a 40% increase last year, and are seen as a strategic pivot to drive higher-margin glasses sales [43][45] Financial Metrics - The company reported a 13.1% adjusted EBITDA margin in Q1, with a focus on controlling expenses and maintaining profitability [25] Conclusion - Warby Parker is positioned to capitalize on growth opportunities in the vision care market through strategic partnerships, innovative product offerings, and a commitment to fair pricing and customer satisfaction [29][31]

Core Viewpoint - TD Securities analyst Oliver Chen maintains a Buy rating on Warby Parker, raising the price forecast from $20 to $24 due to a new collaboration with Google for AI-enabled smart glasses [1][2]. Group 1: Partnership with Google - Google is committing $75 million towards product development and commercialization, with the potential for an additional $75 million investment in Warby Parker stock [2]. - The partnership is seen as a strong signal of Warby Parker's commitment to innovation and its potential to disrupt the eyewear industry [3]. Group 2: Product Development and Market Potential - The AI-powered glasses initiative must leverage advanced, context-aware AI and integrate with tools like Google Maps, featuring stylish designs [4]. - The U.S. smart glasses market is estimated to reach $2-$4 billion by 2030, compared to Warby Parker's current revenue of approximately $800 million [5]. Group 3: Financial Outlook - The partnership is expected to improve customer lifetime value and encourage broader wearable tech development, reinforcing Warby's tech-forward approach [5]. - Warby Parker targets over 20% annual revenue growth, with gross margins in the 58% to 60% range and EBITDA margin gains of around 20% [6]. Group 4: Stock Performance - Warby Parker shares are trading higher by 3.05% to $20.96 [7].

Core Viewpoint - Warby Parker's stock surged by 16% following the announcement of a partnership with Google to develop AI-powered eyeglasses, contrasting with the S&P 500's decline of 0.4% on the same day [1]. Group 1: Partnership Details - Warby Parker is collaborating with Alphabet, Google's parent company, to create advanced eyeglasses utilizing artificial intelligence technology for everyday use [2]. - The first products from this collaboration are expected to launch after this year, although specific details have not been disclosed [4]. Group 2: Financial Commitment - Google is committing up to $75 million to support Warby Parker's development and commercialization efforts, along with a potential direct investment of up to $75 million, contingent on Warby Parker's options and the achievement of unspecified collaboration milestones [5]. - The total potential financial support from Google could reach $150 million, which is seen as a significant advantage for Warby Parker [6]. Group 3: Market Reaction - The partnership with a major tech company like Google is viewed positively, as it aligns with Alphabet's focus on developing innovative technologies, leading to increased investor interest in Warby Parker's stock [6].

Group 1 - Warby Parker's stock has resumed trading with an increase of 21.53% [1] - Alphabet, the parent company of Google, has seen its decline narrow to 0.7% [1]

Group 1 - The article by Mayor Ma Minglong has significantly boosted the confidence of enterprises in the Danyang eyewear industry [1] - Danyang Eyewear Chamber of Commerce calls for government policies focusing on technological breakthroughs, brand internationalization, and ecological integration to position Danyang as a "world eyewear innovation source" [2] - The Danyang eyewear industry is transitioning from "scale expansion" to "quality improvement," necessitating precise policy support for high-end talent recruitment and R&D funding [2] Group 2 - The Danyang eyewear market needs to enhance its core competitiveness through industry standards, employee training, and market management [3] - There is a need to improve professional requirements and technical quality standards in the eyewear industry, particularly in the fitting process [3] - Employee training is crucial for ensuring the quality of eyewear fittings, emphasizing the importance of thorough checks and trials of finished products [3]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $223.8 million, reflecting an 11.9% year-over-year increase [26] - Adjusted EBITDA margin improved to 13.1%, up nearly 200 basis points year-over-year [6][34] - The company achieved its first quarter of positive GAAP net income as a public company [6] Business Line Data and Key Metrics Changes - Retail revenue increased by 14.8% year-over-year, while e-commerce revenue grew by 5.5%, marking its highest quarterly growth since 2021 [26] - Glasses revenue grew by 9.1%, contact lens revenue surged by 25.1%, and eye care revenue increased by approximately 40% year-over-year [28] - Active customers reached 2.57 million, representing an 8.7% year-over-year growth [27] Market Data and Key Metrics Changes - The company opened 11 new stores in Q1, the highest number for that quarter, bringing the total to 287 stores [28] - Retail productivity was reported at 99.8% compared to the same period last year [29] - The penetration of contact lenses increased from 9.2% of revenue in Q1 2024 to 10.3% in Q1 2025 [28] Company Strategy and Development Direction - The company plans to invest in marketing at a rate in the low teens as a percentage of revenue while optimizing media spend [8] - Continued focus on product innovation with the launch of seven new collections, including a premium light-responsive lens [9] - The company aims to open 45 new stores in 2025, including shop-in-shops with Target [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current dynamic macro environment, emphasizing the resilience of their omnichannel model [11][23] - The company is taking a cautious approach to guidance due to potential consumer sentiment volatility [45][47] - Management believes that their value proposition positions them well to gain market share during economic uncertainty [23][58] Other Important Information - The company has reduced its exposure to China in its cost of goods sold from approximately 20% to less than 10% by year-end [13][39] - Adjusted SG&A expenses were reported at $110.3 million, or 49.3% of revenue, showing a decrease from the previous year [32] Q&A Session Summary Question: Change in revenue outlook for the year - Management noted a more cautious approach to guidance due to consumer sentiment volatility and potential elongation in purchase cycles [45][46] Question: Impact of tariffs on gross margin and EBITDA margin - Management indicated that they expect to mitigate the majority of the potential tariff impact through strategic pricing and supply chain adjustments [50][79] Question: Customer traffic and consumer confidence - Management observed pockets of strength and volatility in customer behavior, with confidence in their competitive positioning during market disruptions [56][58] Question: Marketing spend efficiency - Management reported consistent efficiency in marketing investments, leveraging a diversified media mix to optimize spend [66][67] Question: Insurance customer behavior - Management highlighted positive trends in insurance customer utilization and ongoing efforts to improve access to benefits [71][72] Question: Sources of leverage in EBITDA - Management outlined plans for significant leverage from non-marketing SG&A and strategic pricing adjustments to offset tariff impacts [77][79] Question: Consumer behavior of new cohorts - Management reported consistent consumer behavior across new and existing cohorts, with significant opportunities in the optical market [96][97]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $223.8 million, reflecting an 11.9% year-over-year increase [24] - Adjusted EBITDA margin improved to 13.1%, up nearly 200 basis points year-over-year [5][33] - The company achieved its first quarter of positive GAAP net income as a public company [5] Business Line Data and Key Metrics Changes - Retail revenue increased by 14.8% year-over-year, while e-commerce revenue grew by 5.5%, marking its highest quarterly growth since 2021 [25] - Glasses revenue grew by 9.1%, contact lens revenue surged by 25.1%, and eye care revenue increased by approximately 40% year-over-year [26] - Active customers reached 2.57 million, representing an 8.7% year-over-year growth [25] Market Data and Key Metrics Changes - The share of contact lenses in total revenue increased from 9.2% in Q1 2024 to 10.3% in Q1 2025, while eye care's share rose from 4.7% to 5.8% [27] - The company opened 11 new stores in Q1, the highest number for that quarter, bringing the total to 287 stores [27] Company Strategy and Development Direction - The company plans to open 45 new stores in 2025, including shop-in-shops with Target [9][38] - Continued investment in marketing is planned at low teens as a percentage of revenue, leveraging analytics to optimize media spend [6][20] - The company is focused on product innovation, having launched seven collections in 2025, including a new premium light-responsive lens [7] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook due to macroeconomic uncertainties and potential impacts on consumer sentiment [46][48] - The company is confident in its ability to adapt to changing environments, citing past experiences with tariffs and the COVID-19 pandemic [10][22] - The updated revenue guidance for 2025 is between $869 million and $886 million, reflecting a 13% to 15% growth year-over-year [38] Other Important Information - The company has significantly reduced its sourcing from China, estimating that it will decrease from approximately 20% to less than 10% of COGS by year-end [12][37] - Adjusted SG&A expenses were $110.3 million, or 49.3% of revenue, showing a decrease from 51.7% in the previous year [31] Q&A Session Summary Question: Change in revenue outlook for the year - Management noted a more cautious approach to guidance due to consumer sentiment and market volatility, adjusting the growth projection from 14%-16% to 13%-15% [45][48] Question: Impact of tariffs on gross margin and EBITDA margin - Management indicated that the shape of the year for EBITDA would likely follow a similar pattern to previous years, with Q1 being the highest margin quarter [50][51] Question: Customer traffic and consumer confidence - Management observed pockets of strength and volatility in customer behavior, with confidence that the company will benefit from its value proposition during economic uncertainty [56][57] Question: Marketing spend efficiency - The company reported consistent efficiency in marketing investments, with a diversified media mix helping to optimize spend [66] Question: Insurance customer behavior - Management highlighted positive progress in integrating insurance benefits, with insurance customers spending more and showing higher repeat purchase rates [72][73] Question: Consumer behavior of new cohorts - Management noted consistent consumer behavior across new and existing cohorts, with strong market opportunities remaining [95]

Financial Performance - Net revenue for Q1 2025 reached $224 million, an 11.9% year-over-year growth compared to Q1 2024[10] - Adjusted EBITDA for Q1 2025 was $29.2 million, representing 13.1% of net revenue[10] - The company projects full year 2025 net revenue to be between $869 million and $886 million, representing approximately 13-15% year-over-year growth[28] - Full year 2025 adjusted EBITDA is projected to be between $91 million and $97 million, with an adjusted EBITDA margin of approximately 10.5-11.0%[28] - Q2 2025 net revenue is expected to be between $211 million and $214 million, reflecting approximately 12-14% year-over-year growth[30] - Q2 2025 adjusted EBITDA is projected to be between $20 million and $22 million, with an approximate 10% margin[30] Retail Expansion - The company has 287 retail stores as of March 31, 2025, including 282 in the U S and 5 in Canada[8, 23] - 11 net new retail stores were opened in Q1 2025[23] - The company sees potential for 900+ store locations in the future[24] Market Overview - The company's sales represent approximately 1% of the $68 billion U S eyewear market[8]

美瞳 是一种用于改变或增强眼睛颜色的镜片，可实现从自然柔和到鲜明抢眼的多种视觉效果。日抛型美瞳专为单日佩戴设计，使用后无需清洁 护理，直接弃置，更加便捷卫生。 日抛型美瞳作为结合功能性与时尚性的光学产品，其行业发展呈现出快速、细分和消费年轻化的趋势。首先，随着消费者对佩戴舒适度与眼部 健康关注度的提升，日抛型产品因其使用周期短、清洁便利、不易滋生细菌等优势，逐渐成为市场主流。与传统月抛或年抛美瞳相比，日抛型 更适合日常通勤、短期造型或临时搭配使用，有效降低了感染风险，也满足了现代消费者对高效、安全、便捷产品的偏好。与此同时，品牌方 不断推出各类新花色、自然系或特效系镜片，紧贴潮流审美，推动产品向个性化、场景化方向发展。 据 QYResearch 调研团队最新报告 " 全球日抛型美瞳市场报告 2025-2031" 显示， 预计 2031 年全球日抛型美瞳市场规模将达到 35.2 亿美元 ，未 来几年年复合增长率 CAGR 为 11.3% 。 市场驱动因素主要来自三个方面：首先是 " 颜值经济 " 的兴起，尤其在社交媒体的带动下，美瞳不再只是矫正视力的工具，更成为日常妆容的 一部分，引导消费者追求精致外观与自我表 ...

Core Insights - EssilorLuxottica reported consolidated revenue of Euro 6,848 million for Q1 2025, marking a year-on-year increase of 7.3% at constant exchange rates and 8.1% at current exchange rates compared to Q1 2024 [1][4] Revenue Growth - The company's revenue growth was driven by strong performance across all regions and business segments, with comparable-store sales increasing by 8% [4] - EMEA region experienced a growth of 10% at constant exchange rates, supported by both the PS and DTC channels [4] - North America saw a growth of 4%, with solid trends in DTC and resilient demand in PS [4] - Asia-Pacific region reported double-digit growth, particularly strong in myopia solutions in China [4] Product and Brand Performance - The launch of Nuance Audio marked a new category in the U.S., Italy, and France, with plans to expand into the UK and Germany [2][4] - Ray-Ban Meta showed rapid growth, benefiting from high penetration of Transitions lenses [4] - The company highlighted the significance of its brands, including Oakley celebrating its 50th anniversary and Oliver Peoples extending its partnership with Roger Federer [2] Strategic Goals and Future Outlook - The company is making significant strides towards its strategic goals, particularly in the wearables and med-tech space, supported by new clinical data on Stellest for myopia progression [2] - The commitment of the company's 200,000 employees is emphasized as a key factor in driving continued success and shareholder trust [2]