Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker Inc. has outlined ambitious plans to expand its production capacity to 10 million units annually by the end of 2026, which is expected to support sales growth and operational efficiency. The company's sales are on track to re-accelerate towards a target growth rate of 20%, driven by increased demand, a broader customer base for holistic vision offerings, and expansion into higher average selling prices, including progressive lenses. Furthermore, despite the challenges posed by tariffs, Warby Parker's adjusted EBITDA margin guidance for FY25 indicates a significant improvement, projecting an increase to 11.3%-11.6%, reflecting the company’s ability to mitigate external pressures while scaling its retail footprint towards a potential 900-store network.

Warby Parker Inc. faces a challenging outlook due to macroeconomic factors impacting consumer spending, particularly among younger demographics, which has resulted in decreased sales and a trade-down to lower-priced eyewear options. The company's recent growth metrics, while solid, have not met management's expectations, indicating potential headwinds in maintaining revenue momentum and driving brand awareness amid increasing competition in the eyewear sector. Furthermore, industry data reveals a year-over-year decline in eyewear unit sales, raising concerns about the sustainability of the firm's growth and the performance of new store openings, which may contribute to margin compression and cash usage.