Warby Parker Inc. (WRBY) stock soared 5.96% on Thursday in the pre-market trading session. The eyewear company's shares rallied following its announcement of a partnership with retail giant Target Corporation (TGT) to open shop-in-shops in select Target stores and its better-than-expected fourth-quarter results.

The company reported a narrower net loss of $6.9 million, or 6 cents per share, for the fourth quarter, beating analysts' estimates of a 6-cent loss. Revenue rose 17.8% year-over-year to $190.6 million, exceeding the consensus estimate of $188.0 million. Warby Parker also provided an upbeat revenue guidance for 2025, forecasting sales between $878 million and $893 million, above analysts' expectations of $872.1 million.

The partnership with Target is expected to significantly expand Warby Parker's reach and accessibility to consumers. As part of the deal, the first five "Warby Parker at Target" shop-in-shops will debut in the second half of 2025, with plans to open more locations in the coming years. Each shop-in-shop will offer Warby Parker's designer-quality eyewear, including glasses, sunglasses, and contacts, as well as eye exams and vision tests, consistent with the company's omnichannel experience.