Overview

* Warby Parker ( WRBY ) Q3 revenue grows 15% yr/yr but misses analyst expectations

* Net income for Q3 improved by $9.9 mln to $5.9 mln

* Adjusted EBITDA increased $8.4 mln to $25.7 mln

Outlook

* Warby Parker ( WRBY ) forecasts 2025 revenue of $871 mln to $874 mln, up about 13%

* Company expects 2025 adjusted EBITDA of $98 mln to $101 mln

* Warby Parker ( WRBY ) plans to open 45 new stores in 2025

Result Drivers

* AI INNOVATION - Co attributes revenue growth to innovation, including AI glasses, enhancing customer experience

* CUSTOMER GROWTH - Active customers increased 9.3% on a trailing 12-month basis, contributing to revenue growth

* COST MANAGEMENT - Improved profitability attributed to operational discipline and focus on sustainable growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $221.68 $224.49

Revenue mln mln (13

Analysts

)

Q3 EPS $0.05

Q3 Net $5.87

Income mln

Q3 $25.70

Adjusted mln

EBITDA

Q3 Gross 54.10%

Margin

Q3 11.60%

Adjusted

EBITDA

Margin

Q3 Gross $119.95

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "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 ( WRBY ) is $28.00, about 32% above its November 5 closing price of $19.05

* The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)