Warby Parker: I Don't See A Path To An Upgrade

Warby Parker remains a speculative 'hold' due to high valuation despite robust revenue growth and expansion plans. WRBY's growth is driven by aggressive store openings, rising active customers, and higher revenue per customer, though margin pressure persists. Upcoming AI glasses launch, backed by Alphabet's $150M partnership, is a key potential upside but carries execution risk. Second quarter fiscal 2026 results and AI glasses progress are critical catalysts; failure to deliver could trigger a downgrade.

The last few months have not been a particularly pleasant time for shareholders of Warby Parker (WRBY). Since I last reaffirmed the company as a ‘hold’ candidate back in December of last year, the stock has fallen 15.8%. This is at