Warby Parker beats Q2 revenue estimates, announces CFO departure
Overview
Warby Parker Q2 rev grows 14% yr/yr, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 beats consensus
Co raises full-year 2025 revenue outlook, and announces CFO Steve Miller to step down on Oct. 1
Outlook
Warby Parker raises 2025 revenue guidance to $880 mln-$888 mln
Company expects 2025 adjusted EBITDA of $98 mln-$101 mln
Warby Parker plans to open 45 new stores in 2025
Company projects 2025 adjusted EBITDA margin of 11.1%-11.4%
Result Drivers
AI INITIATIVES - Launch of AI-driven recommendation tool 'Advisor' showing strong early traction, per Co-CEO Dave Gilboa
STORE EXPANSION - Opened 11 new stores during Q2, ending with 298 stores, contributing to revenue growth
INVENTORY WRITE-DOWNS - Gross margin impacted by $2.5 mln inventory write-downs related to sunsetting Home-Try On program
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $214.48 mln | $213.10 mln (14 Analysts) |
Q2 EPS |
| -$0.01 |
|
Q2 Net Income |
| -$1.75 mln |
|
Q2 Adjusted EBITDA | Beat | $25 mln | $21.70 mln (13 Analysts) |
Q2 Gross Margin |
| 53.0% |
|
Q2 Adjusted EBITDA Margin |
| 11.7% |
|
Q2 Gross Profit |
| $113.61 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Warby Parker Inc is $24.00, about 1.3% below its August 6 closing price of $24.30
The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 47 three months ago
Press Release: ID:nBw4W8pP2a
