Warby Parker Inc. (WRBY) shares tumbled 5.63% in pre-market trading on Thursday following the release of its first-quarter 2025 results and revised annual guidance. The eyewear company's performance fell short of analyst expectations, prompting a sell-off among investors.
The company reported first-quarter earnings per share (EPS) of $0.03, missing the FactSet estimate of $0.05. Revenue for the quarter came in at $223.782 million, falling short of the IBES estimate of $225.4 million. Despite these misses, Warby Parker did show some positive metrics, including an adjusted EBITDA of $29.2 million, which surpassed the IBES estimate of $27.8 million.
However, the primary driver of the stock's decline appears to be Warby Parker's revised annual revenue forecast. The company now projects full-year 2025 net revenue between $869 million and $886 million, a reduction from previous estimates. This outlook falls below the IBES data view of $883.3 million, signaling potential growth challenges ahead. The lowered guidance, combined with the earnings miss, has led investors to reassess their positions, resulting in the significant pre-market drop.