Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker is supported by a durable omnichannel model that is still early in penetration, with 15 net new stores added in 2Q, eye exams growing 30%+ Y/Y, and exams already about 7% of revenue as management sees a path to 15–20% over time. Its core economics are improving, with gross margin up 380 bps Y/Y to 58.1% in 2Q and adjusted EBITDA of $30M in Q1, while FY26 revenue is guided to grow 10%–12% and adjusted EBITDA to $117M–$119M. The outlook is further strengthened by expanding marketing firepower, tariff benefits, and the potential for AI-powered glasses with Google to widen its addressable market and reinforce a long runway for share gains.

Warby Parker is facing a fundamentally कमजोर demand backdrop, as 2Q26 revenue came in 1% below consensus and at the low end of guidance while softer category demand reduced traffic and unit sales. The business is also absorbing structural and cyclical headwinds from the sunset of Home Try-On, which cut 2Q growth by about 2.8 points and is still expected to weigh on 3Q and 4Q, even as eCommerce was down 0.3% Y/Y and optical softness persisted. At the same time, gross margins are expected to contract by 25+ bps in 2026 from rising contact penetration, occupancy and optometrist costs, and new tariffs, leaving the company exposed to further macro weakness, pricing pressure, and store ramp risk.