Warby Parker Q4 revenue up 11.2%, slightly misses estimates

Overview

• Vision lifestyle brand's Q4 revenue grew 11.2% but slightly missed analyst expectations

• Company achieved first full year of positive net income of $1.6 mln

• Company authorized $100 mln share repurchase program

Outlook

• Warby Parker expects 2026 revenue of $959 mln to $976 mln

• Company anticipates 2026 Adjusted EBITDA of $117 mln to $119 mln

• Warby Parker plans to open 50 new stores in 2026

Result Drivers

• GROSS MARGIN PRESSURE - Gross margin decreased due to tariff costs, increased doctor headcount, and higher shipping costs, partially offset by price increases and progressive lens sales

• SG&A EFFICIENCIES - SG&A expenses decreased as a percentage of revenue due to corporate expense leverage and operational efficiencies

• STORE EXPANSION - Opened 47 net new stores during the year, contributing to revenue growth

Company press release: ID:nBw6BDxsMa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Warby Parker Inc is $28.50, about 30.9% above its February 25 closing price of $21.77

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 42 three months ago

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