Shares of Warby Parker Inc. (WRBY) plummeted 15.94% in pre-market trading on Thursday following the release of its third-quarter earnings report, which fell short of analysts' expectations and included a reduction in the company's full-year sales guidance.

The eyewear retailer reported Q3 revenue of $221.68 million, representing a 15.2% increase year-over-year but missing the consensus estimate of $224.5 million. Despite swinging to a profit with net income of $5.87 million (or 5 cents per share), up from a loss of $4.07 million in the same period last year, investors seemed more focused on the company's top-line performance and future outlook.

Adding to the negative sentiment, Warby Parker lowered its full-year 2025 revenue guidance to a range of $871 million to $874 million, down from its previous forecast of $880 million to $888 million. The company also reported a slight decline in gross margin to 54.1% from 54.5% in the previous year, citing factors such as tariffs, increased sales of contact lenses, and higher shipping costs. Despite these challenges, Warby Parker remains committed to its expansion plans, aiming to open 45 new stores in 2025, including five previously opened shop-in-shops at select Target locations.