The online-retailer of eyeglasses sank over 17% at the intra-day low, touching a 52-week low at $16.63. While the stock battled back to a more modest loss of 10.2% with 90 minutes left in the trading day, the double-digit drop still stings shareholders already battered by an over 60% drop year to date.
The catalyst for the latest crash in shares was nothing of Warby Parker’s (WRBY) direct doing. Instead, a chief competitor in National Vision Holdings (EYE -23.3%) is impacting sentiment on eyeglass sales broadly.
In its earnings release, National Vision Holdings (EYE) cited headwinds from the pandemic, weakening consumer confidence, constraints on testing, inflation, supply chain issues, and even the war in Ukraine for its big earnings miss and disappointing forecast. Given the scale of the miss and the myriad of issues blamed, the read through to competitors is understandably provoking a modicum of caution.
Read more on the results from National Vision Holdings