Warby Parker Inc. (WRBY): A Bull Case Theory

We came across a bullish thesis on Warby Parker Inc. on Valueinvestorsclub.com by CaptainAyub. In this article, we will summarize the bulls’ thesis on WRBY. Warby Parker Inc.'s share was trading at $25.51 as of January 30th. WRBY’s forward P/E was 56.82 according to Yahoo Finance.

Warby Parker Inc. provides eyewear products in the United States and Canada. WRBY is navigating a softer consumer backdrop with relative resilience, supported by its focus on higher-income customers and the essential nature of vision correction. The company continues to see stable purchasing behavior from older and progressive-lens customers, while weakness among younger consumers has been more pronounced.

This pressure is expected to be temporary, as vision care is a need-based category likely to benefit early from the upcoming tax refund season. The OBBB is projected to drive a 35% increase in refunds, or roughly $125 billion in one-time stimulus between February and May 2026, which should meaningfully support demand. Comparable sales trends have already improved, with productivity-backed comps showing consistent two-year acceleration, a trend management highlighted in recent earnings as retail productivity reached record levels and four-wall margins remained in line with targets.

A growing in-network insurance footprint, including the addition of Versant, provides a near-term revenue tailwind, particularly in the fourth quarter when vision benefits are typically utilized. Insurance customers are among Warby Parker’s highest-value cohorts, spending more upfront, selecting progressives more frequently, and returning at higher rates. The company also retains a long store growth runway, with just over 300 U.S. stores in a highly fragmented market of roughly 45,000 optical locations.

Margins are positioned to inflect as tariff pressures ease and fixed costs leverage. While gross margins have compressed due to investments in optometrists and eye exam capacity, incremental economics remain highly attractive given the low unit cost of frames and lenses. SG&A is also expected to leverage meaningfully as incremental non-marketing spend remains modest.

Strategically, Warby Parker is emerging as a winner in intelligent eyewear through partnerships with Google and Samsung, backed by meaningful capital commitments and product development support. At its current valuation, the stock offers strong downside support and a compelling upside scenario driven by improving comps, margin expansion, AI-enabled products, and upcoming tax-related demand catalysts.

Previously, we covered a bullish thesis on Ulta Beauty, Inc. (ULTA) by @wallstengine in May 2025, which highlighted improving comps, easing competitive pressures, and conservative margin guidance. ULTA’s stock price has appreciated by approximately 59.04% since our coverage. CaptainAyub shares a similar view but emphasizes Warby Parker’s demand resilience and margin inflection.

Warby Parker Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held WRBY at the end of the third quarter which was 34 in the previous quarter. While we acknowledge the potential of WRBY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.