Warby Parker Inc. (WRBY) PT Lowered to $22 at Evercore ISI

Evercore ISI analyst Mark Mahaney lowered the price target on Warby Parker Inc. (NYSE: WRBY) to $22.00 (from $24.00) while maintaining a In Line rating.

The analyst comments "Our View: We maintain our In Line rating in the wake of Mixed & Lower Q1 EPS Results and lower our PT to $22 from $24. WRBY continues to deliver consistent fundamental performance driven by glasses growth, strategic investments in marketing, store fleet expansion, and exams rollout. Q1 Revenue of $223.8M (+11.9% Y/Y) and Gross Profit of $126.0M (56.3% margin) were both modestly below the Street while EBITDA of $29.2 (13.1% margin) was modestly above the Street. Updated outlook for FY25, which is likely conservative, reflects WRBY’s response to tariffs and increasing uncertainty around consumer sentiment for the remainder of the year. WRBY expects to mitigate the majority of the $45-50M potential impact assuming current China tariff rates of 145% hold for the rest of the year and expects approx. 200-300bps of Gross Margin impact for FY25. WRBY shares traded off ~6% premarket on the Q1 topline miss and lowered guide, tho shares recovered to trading slightly positive after mgmt. detailed its tariff mitigation plan and noted conservatism in its FY25 outlook on the conf call. While WRBY faces several catalysts including: 1) continued Active Customer growth acceleration, 2) e-Commerce growth recovery, and 3) EBITDA Margin expansion, we remain on the sidelines given softer consumer sentiment and tariff related trade and macro uncertainties."

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