Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker is attractive fundamentally because it is still expanding from a relatively low penetration base, with 15 net new stores opened in 2Q, management targeting 50 openings for 2026, and eye exams growing 30%+ Y/Y to about 7% of revenue. Its vertically integrated D2C model supports pricing power and margin improvement, evidenced by 2Q gross margin of 58.1% and adjusted EBITDA margin of 12.2% in Q1, while the higher-margin eye-exam business could eventually reach 15–20% of revenue. The outlook is further strengthened by AI-powered glasses and Google reimbursement support, which, alongside rising marketing investment and broader omnichannel adoption, could extend growth and customer stickiness over the medium to long term.

Warby Parker is facing a soft optical category that continues to दब pressure traffic and units, with eCommerce down 0.3% Y/Y and the reported 2Q growth also hurt by a 2.8-point drag from sunsetting Home Try-On. The company may have gained share, but its demand remains vulnerable if consumers delay frame replacement amid macro uncertainty, especially as competitors imitate its technology and go-to-market model. Fundamental profitability also looks pressured, as gross margins are expected to contract 25+ bps in 2026 from higher contacts penetration, rising occupancy and optometrist costs, and additional tariffs, while weak store ramping could worsen margin compression and cash usage.