Warby Parker Q3 revenue rises on higher active customer count
Overview
U.S. eyewear retailer's Q3 revenue rose 10.4% yr/yr, slightly missing analyst expectations
Net income for Q3 was $5.6 mln, down slightly from prior year
Company gross margin edges up to 54.4% from 54.1% yr/yr
Outlook
Company sees full-year 2026 net revenue of $966 mln to $976 mln
Company expects 2026 adjusted EBITDA of $117 mln to $119 mln
2026 guidance includes modest contribution and costs from Intelligent Eyewear launch
Result Drivers
GROSS MARGIN FACTORS - Co said higher gross margin was driven by reduced tariffs, shipping savings, optical lab efficiencies, and increased penetration of progressives and other lens treatments, partially offset by higher occupancy costs from new stores
CUSTOMER METRICS - Co said revenue growth was supported by higher active customer count and increased average revenue per customer
SG&A EXPENSES - Co said higher SG&A costs were mainly due to increased retail compensation and technology expenses, partially offset by lower marketing spend
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $244.74 mln | $244.92 mln (13 Analysts) |
Q3 Net Income | $5.60 mln | ||
Q3 Adjusted EBITDA | $28.60 mln | ||
Q3 Gross Margin | 54.40% | ||
Q3 Adjusted EBITDA Margin | 11.70% | ||
Q3 Gross Profit | $133.17 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "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. is $32.00, about 50.3% above its November 4 closing price of $21.29
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 46 three months ago
Reuters Recommended Reads
Nov 5 - Germany's Fielmann Q3 sales rise year on year, maintains 2026 outlook
Nov 4 - UK's Marks and Spencer interim revenue, profit beat estimates
Nov 4 - Wayfair beats Q3 revenue, profit estimates on more customers, orders
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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.)