Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker Inc. demonstrated robust financial performance with an eighth consecutive quarter of growth in active customers, reflecting a 9% increase year-over-year, and an average revenue per customer of $316, up approximately 5%. The company achieved its highest quarterly retail productivity since 2022, driven by strong sales in glasses and a notable 41% year-over-year increase in eye exams, which contributed 6.5% to total sales. Furthermore, contact lenses sales grew by 21% year-over-year, highlighting the brand's ability to expand in key markets and leverage its physical store presence for enhanced e-commerce growth.

The negative outlook on Warby Parker's stock is underscored by a projected gross margin decline of 110 basis points year-over-year, which falls short of both the previous performance and market expectations. Despite a reported 15%+ total revenue growth in the last quarter, this figure was below management's expectations, along with a noted slowdown in spending among younger consumers, impacting demand for both basic and premium products. Additionally, the company's guidance has been reduced due to moderation in sales trends, suggesting potential challenges in maintaining momentum against a competitive backdrop.