Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker Inc. demonstrated strong financial performance, with total sales increasing by 6.4% year-over-year to $149.9 million, significantly exceeding consensus expectations. The company also reported an impressive adjusted EBITDA margin expansion of 220 basis points to 5.5%, indicating improved operational efficiency and profitability. Additionally, the firm experienced a notable rise in active customers, growing by 14.1% year-over-year, alongside a 6.8% increase in average revenue per customer, which reflects effective customer engagement and retention strategies.

Warby Parker Inc. has demonstrated concerning financial trends, with total operating expenses increasing to 59.4% of sales, significantly higher than the market consensus of 57.5%, indicating worse cost management than anticipated. Additionally, the firm experienced a notable 12.2% year-over-year sales decline in the Australia/New Zealand region, following previous declines, which raises questions about its growth potential in international markets. Furthermore, the deterioration in total sales per average showroom, dropping to $3.0 million in 2024 from $3.6 million in 2019, suggests weakening performance and efficiency in its retail operations, raising further concerns about the company's long-term viability.