Warby Parker(WRBY) Benzinga·2024-10-21 18:14Core Insights - Goldman Sachs analyst Brooke Roach revised ratings on Warby Parker Inc. and Canada Goose Holdings Inc. ahead of their third-quarter earnings, noting fluctuating trends in the apparel sector as summer transitions to early fall [1][2] - Despite volatility expected for the remainder of 2024, early indicators such as falling gas prices and increased consumer discretionary cash flow suggest a more positive outlook for 2025 [1] Warby Parker Inc. (WRBY) - The stock rating was upgraded to Buy from Neutral, with the price target raised to $18 from $15, driven by promising tailwinds including expansion of insurance partnerships, growth in the vision care market, and increasing active customer numbers [2] - Improved gross profit rates from stronger glasses sales and cost-efficiency efforts in stores are expected to enhance fundamentals [2] Canada Goose Holdings Inc. (GOOS) - The stock rating was downgraded to Sell from Neutral, with the price target lowered to $9 from $11.5, reflecting a less appealing risk/reward profile compared to peers in the apparel sector [2][3] - The bearish outlook is attributed to heightened competition, normalizing brand momentum, a slowing global luxury market, and a volatile macroeconomic environment in China [3] - Despite the downgrade, there is optimism regarding strategic initiatives such as product capsules from the new creative director and improved retail execution [3] Market Context - Key factors to monitor include the upcoming U.S. elections and their implications for tariffs and geopolitical risks, a shortened holiday season, and challenges from early fall weather [2]