What Happened?
Shares of eyewear retailer Warby Parker (NYSE: WRBY) fell 13.7% in the morning session after the company reported third-quarter financial results that missed revenue expectations and lowered its full-year sales forecast.
The eyewear retailer posted revenue of $221.7 million, a 15.2% year-over-year increase, but this fell short of analysts' estimates of $224.3 million. While the company's earnings per share of $0.05 was in line with expectations, investors appeared to focus on the sales miss. Compounding the issue, Warby Parker also reduced its full-year revenue guidance to a midpoint of $872.5 million, which was below the prior forecast and analysts' projections. Despite growth in active customers, the failure to meet current revenue targets and the trimmed outlook for the future prompted a negative reaction from investors.
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What Is The Market Telling Us
Warby Parker’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for Warby Parker and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.6% on the news that Telsey Advisory Group maintained its Outperform rating on the company's stock. The advisory group also kept its price target steady at $28.00. This vote of confidence followed a difficult period for the stock, which had seen a significant price drop in the preceding month. The reaffirmation of the positive outlook by the analyst group may have encouraged investors, signaling belief in the company's prospects despite the recent market weakness.
Warby Parker is down 31.4% since the beginning of the year, and at $17.40 per share, it is trading 39.1% below its 52-week high of $28.56 from September 2025. Investors who bought $1,000 worth of Warby Parker’s shares at the IPO in September 2021 would now be looking at an investment worth $319.31.
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