Stock Market News

Warby Parker Shares Surge Despite Cutting Full-Year Outlook

2022.08.11 17:54

Warby Parker Shares Surge Despite Cutting Full-Year Outlook
Warby Parker (WRBY) Shares Surge Despite Cutting Full-Year Outlook

By Sam Boughedda

Warby Parker Inc (NYSE:WRBY) shares jumped more than 29% to levels not seen since June in early Thursday trading after the company reported second-quarter earnings topping analyst expectations.

The online eyewear retailer reported a second-quarter loss of $0.01 per share, $0.01 better than the analyst estimate for a loss of $0.02. Revenue for the quarter came in at $149.6 million versus the consensus estimate of $149.5 million. Revenue increased 13.7% during the quarter.

Furthermore, active customers increased 8.7% to 2.26 million, with the average revenue per customer increasing 8.2% year over year to $254.

“Q2 was another quarter where Warby Parker made strong progress against our core strategic growth initiatives, gained market share, and delighted customers despite shifts in consumer spending,” said Co-Founder and Co-CEO Neil Blumenthal.

Looking ahead, the company slashed its outlook for the year. It sees full-year 2022 revenue between $584 million and $595 million, below the consensus of $640.8 million.

Following the report, a Goldman Sachs analyst told investors in a research note: “On balance, while we are encouraged by the 2Q revenue delivery in line with expectations, we view today’s updated guidance outlook as disappointing. Our conversations with investors ahead of the print suggested that a full year guidance cut for both sales and EBITDA was expected, though we believe the magnitude of the reduction to full year revenue embedded in today’s guide (which implies 2H revenue growth of only ~6% despite a significantly larger store base and initiatives to improve productivity) is below buyside expectations.”

In addition, a Telsey analyst, who has an Outperform rating and a $30 price target on the stock, said: “The moderation in the annual outlook was not unexpected, in our view, given the macro and inflationary headwinds impacting both the company and its consumer, and we believe the company’s more cautious outlook is prudent as management rationalizes the expense structure to help navigate this challenging operating environment.”

The analyst added that she sees the company benefitting from “sustainable profit growth” given strong customer trends and its vertically integrated model.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 97,443.11 1.50%
ethereum
Ethereum (ETH) $ 3,336.10 2.32%
tether
Tether (USDT) $ 1.00 0.05%
solana
Solana (SOL) $ 246.66 4.85%
bnb
BNB (BNB) $ 650.38 2.95%
xrp
XRP (XRP) $ 1.36 11.89%
dogecoin
Dogecoin (DOGE) $ 0.416524 11.13%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 0.989753 8.46%
staked-ether
Lido Staked Ether (STETH) $ 3,338.16 2.14%
tron
TRON (TRX) $ 0.204529 7.02%
avalanche-2
Avalanche (AVAX) $ 39.88 7.02%
stellar
Stellar (XLM) $ 0.534932 22.46%
the-open-network
Toncoin (TON) $ 6.00 3.21%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 9.29%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,965.16 1.95%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,309.07 1.17%
polkadot
Polkadot (DOT) $ 8.41 4.63%
chainlink
Chainlink (LINK) $ 16.63 4.30%
bitcoin-cash
Bitcoin Cash (BCH) $ 492.58 7.56%
weth
WETH (WETH) $ 3,335.63 2.23%
sui
Sui (SUI) $ 3.28 7.86%
pepe
Pepe (PEPE) $ 0.00002 9.78%
leo-token
LEO Token (LEO) $ 8.64 0.25%
near
NEAR Protocol (NEAR) $ 6.29 1.52%
litecoin
Litecoin (LTC) $ 94.84 7.89%
aptos
Aptos (APT) $ 11.96 6.53%
uniswap
Uniswap (UNI) $ 10.55 0.64%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,512.80 2.26%
hedera-hashgraph
Hedera (HBAR) $ 0.144057 4.75%
usds
USDS (USDS) $ 0.998666 0.34%
internet-computer
Internet Computer (ICP) $ 10.86 6.71%
crypto-com-chain
Cronos (CRO) $ 0.188099 4.32%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.542468 2.98%
ethereum-classic
Ethereum Classic (ETC) $ 28.12 7.75%
render-token
Render (RENDER) $ 7.53 3.90%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.08%
kaspa
Kaspa (KAS) $ 0.149276 8.58%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 4.97%
bittensor
Bittensor (TAO) $ 499.09 5.86%
whitebit
WhiteBIT Coin (WBT) $ 24.46 0.88%
dai
Dai (DAI) $ 1.00 0.08%
arbitrum
Arbitrum (ARB) $ 0.827254 3.16%
bonk
Bonk (BONK) $ 0.000045 12.31%
mantra-dao
MANTRA (OM) $ 3.72 3.26%
cosmos
Cosmos Hub (ATOM) $ 8.60 5.60%
vechain
VeChain (VET) $ 0.040601 6.01%
celestia
Celestia (TIA) $ 7.89 26.25%
filecoin
Filecoin (FIL) $ 5.45 4.71%
okb
OKB (OKB) $ 52.76 3.86%