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On Thursday, Evercore ISI maintained its In Line rating on Warby Parker Inc. (NYSE:WRBY) and increased the price target for the company’s shares from $23.00 to $24.00. This adjustment follows Warby Parker’s strong fourth-quarter earnings, where the company outperformed expectations and raised its future earnings projections. Currently trading at $24.72, the stock has shown remarkable strength with a 58% return over the past year, according to InvestingPro data.
Warby Parker has been experiencing positive momentum, attributed to the growth in glasses sales, strategic marketing investments, expansion of its store fleet, and the rollout of eye exams. The company maintains a healthy gross margin of 55.32% and has achieved revenue growth of 13.47% in the last twelve months. Management has projected a minor impact of 20 to 40 basis points on gross margins due to tariff exposure in the fiscal year 2025, with China accounting for 20% of the company’s total cost of goods sold.Unlock deeper insights into Warby Parker’s financial health and growth potential with InvestingPro, which offers exclusive analysis and 8 additional key insights about the company.
In addition to the price target change, Warby Parker announced plans to open five shop-in-shops within Target (NYSE:TGT) stores during the second half of 2025. This move is part of the company’s strategy to enhance its retail presence and accessibility to consumers.
Evercore ISI highlighted several catalysts that could potentially accelerate Warby Parker’s growth. These include continued acceleration in active customer growth, recovery in e-commerce growth, and expansion of EBITDA margins. The firm noted that while these factors are positive, they believe the current share price already fairly reflects the company’s fundamental strengths and growth prospects.
In other recent news, Warby Parker Inc. reported its fourth-quarter 2024 earnings, revealing a notable revenue growth of 17.8% year-over-year, reaching $190.6 million, which surpassed the forecast of $186.76 million. However, the company missed earnings per share (EPS) expectations, posting an EPS of -$0.06 against the anticipated $0.03. Despite the EPS shortfall, the revenue performance led to positive market sentiment. Warby Parker is planning to expand its physical presence by opening 45 new stores in 2025, including five shop-in-shops with Target, as part of its strategic initiatives. The company is also focusing on enhancing its AI-powered recommendation engine to improve customer experience. Looking ahead, Warby Parker projects 2025 revenue growth between 14% and 16% and anticipates an adjusted EBITDA of $97 million. Analyst discussions during the earnings call highlighted the company’s customer acquisition strategies and the positive integration with Versant Health.
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