Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential

4. Warby Parker Inc. (NYSE:WRBY)

Number of Hedge Fund Holders as of Q4: 34

Tao Capital’s Equity Stake: $3.26 Million

Upside Potential as of May 8: 47.17%

Warby Parker Inc. (NYSE:WRBY) is a leading American eyewear brand and retailer, headquartered in New York City. Initially launched as an online-only retailer in 2010, Warby Parker has since expanded significantly, now deriving approximately two-thirds of its revenue from its 276 physical retail stores across the U.S. and Canada. The company offers a range of eyewear products, including prescription glasses, contact lenses, sunglasses, and eye exams.

In 2024, Warby Parker Inc. (NYSE:WRBY) demonstrated strong financial performance, with full-year net revenue rising by $101.6 million (15.2%) to $771.3 million compared to the previous year. Fourth-quarter net revenue saw a robust increase of $28.8 million (17.8%) to reach $190.6 million. This growth was driven by an increase in active customers, which rose by 7.8% to 2.51 million on a trailing 12-month basis. Additionally, the average revenue per customer grew by 6.8% to $307, reflecting effective customer engagement and upselling strategies.

The company’s profitability also improved, with a gross margin of 54.1%, up from 53.8% in the prior year. Operating activities generated $98.7 million in net cash, a significant improvement from $61.0 million in 2023. Full-year free cash flow totaled $34.7 million, highlighting Warby Parker’s enhanced cash generation capabilities. Warby Parker Inc. (NYSE:WRBY) opened 41 new stores in 2024, ending the year with 276 locations, and plans to open 45 additional stores in 2025, including five shop-in-shops at select Target locations.

Warby Parker Inc. (NYSE:WRBY) has set an ambitious outlook for 2025, projecting net revenue between $878 million and $893 million, representing 14% to 16% growth. With a price target of $23.93 and an upside potential of 48.08%, Warby Parker Inc. (NYSE:WRBY) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. The company’s ongoing store expansion and increasing customer engagement underscore its potential for sustained growth.

Polen US SMID Company Growth Strategy stated the following regarding Warby Parker Inc. (NYSE:WRBY) in its Q4 2024 investor letter:

“Warby Parker Inc. (NYSE:WRBY), a U.S.-based omnichannel retailer of eyewear products with a unique vertically integrated direct-to-consumer business model, reported encouraging quarterly results. The company experienced strong growth in its glasses business and continued momentum in contact lenses and optometry. Investment in optometrists is yielding results, driving improved gross margins through enhanced utilization. Warby Parker appears to be emerging from a challenging period where it was adversely impacted by post-pandemic changes in consumer behavior. Company management’s steps to reduce costs appear to be paying off. More recently, we’ve seen fundamentals improve, with marketing spend recovering now that margins have settled. We believe the company has the potential to enhance its profitability as demand continues to recover and it completes and capitalizes on heavy investments in areas such as optometry services, which previously weighed on margins.”