Warby Parker (WRBY) Stock Forecast & Price Target

Warby Parker Inc. is poised for significant growth with plans to expand its production capacity to reach 10 million units annually by the end of 2026, which aligns with its goal of scaling its retail footprint to a potential 900-store network, a substantial increase from 313 stores as of the end of the third quarter in 2025. The company's sales are beginning to re-accelerate towards its targeted growth rate of 20%, driven by pent-up demand and an increase in average selling prices (ASPs), particularly in progressive lenses, which contribute to further margin expansion. Notably, despite the impact of tariffs in fiscal year 2025, Warby Parker's adjusted EBITDA margin guidance has improved, indicating a robust financial outlook that positions the company for a transformative year ahead.

Warby Parker Inc. is facing a challenging outlook as its recent revenue growth of 15% fell short of management expectations, particularly highlighting a trend of younger consumers opting for lower-priced eyewear, which could hinder overall sales growth. Additionally, the company is grappling with macroeconomic pressures and increased competition, which may prolong the eyewear replenishment cycle and lead to greater margin compression. Furthermore, industry data indicates a decline in eyewear unit sales year-over-year, raising concerns about the company's ability to maintain brand awareness and effectively capitalize on new store openings.