Warby Parker ( NYSE: WRBY ) stock slid sharply on Wednesday after Citi stepped to the sidelines and slashed their price target on the stock.
Equity analyst Paul Lejuez told clients that while the Q4 report was “fine”, a number of aspects contained in the 2023 guide raised red flags. Namely, a weaker sales guide and lackluster active customer acquisition, accompanied by cuts in marketing spend are areas of concern.
“We come away with little conviction that WRBY can return to its initial target of 20% topline growth annually. And although the stock has significantly underperformed (down 56% over past 12 months), we believe it is time to step aside,” he told clients.
Lejuez cut his price target to $13 from a prior $26 alongside the downgrade. Shares of Warby Parker plunged 6.23% on Wednesday.
Read the company’s earnings call transcript .
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Citi downgrades Warby Parker due to weak sales guidance