Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker Inc. exhibited a robust financial performance with total revenues increasing by 13.9% year-over-year to $214.5 million, surpassing both consensus estimates and guidance expectations. The company experienced a notable growth in active customers, reaching 2.60 million, which represented a 9.0% increase from the previous year, while average revenue per customer rose by 4.6% to $316. Additionally, the company's strategic expansion into new suburban markets and continued strong trends in both retail and e-commerce channels contribute to a confident annual outlook, marking the eighth consecutive quarter of active customer growth and solidifying its position in the optical market.

Warby Parker Inc. is experiencing pressures on both revenue and gross margins, with reported gross margin contracting by 180 basis points year-over-year to 54.3%, falling short of both prior estimates and consensus expectations. The company faced challenges in its second quarter, including a revenue outlook that fell slightly short of consensus and an adjusted EBITDA margin that decreased to 10.0%, down from 10.4% in the previous year. Furthermore, a significant one-time inventory write-down related to the phase-out of the Home-Try-On program and a higher tax rate negatively impacted earnings per share, contributing to a negative outlook for the stock.