Warby Parker Inc. (NYSE:WRBY) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse Warby Parker Inc.'s (NYSE:WRBY) business as it appears the company may be on the cusp of a considerable accomplishment. Warby Parker Inc. provides eyewear products. The US$1.5b market-cap company’s loss lessened since it announced a US$110m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$64m, as it approaches breakeven. As path to profitability is the topic on Warby Parker's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Warby Parker
Warby Parker is bordering on breakeven, according to the 15 American Specialty Retail analysts. They expect the company to post a final loss in 2024, before turning a profit of US$14m in 2025. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 106% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Warby Parker's upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Warby Parker currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Warby Parker which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Warby Parker, take a look at Warby Parker's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Valuation: What is Warby Parker worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Warby Parker is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Warby Parker’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
