Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker Inc. has demonstrated a robust growth trajectory, with a notable 9% increase in active customers over the last twelve months, alongside a 5% year-over-year rise in average revenue per customer, reaching $316. The company reported its highest quarterly retail productivity since 2022 in Q3, driven by significant gains in both eyewear and optical services, including a 41% year-over-year surge in eye exams. Additionally, the firm has successfully captured market share in the optical segment and observed a 21% growth in contact lens sales, underscoring positive momentum in both physical and e-commerce channels.

Warby Parker's negative outlook is primarily attributed to a projected decline in gross margin, expected to be 53.5%, which is lower than both the previous year's figure and the consensus expectations. Although the company reported a 15% total revenue growth last quarter, it failed to meet management's expectations and highlighted weaknesses in consumer spending, particularly among younger demographics facing higher unemployment and increased price sensitivity. Additionally, the guidance reduction stemming from moderating trends further emphasizes the challenges the company faces in maintaining its disruptive edge in the eyewear retail segment.