10 Footwear Apparel Stocks Affected By China Tariffs

4. Warby Parker Inc. (NYSE:WRBY)

Warby Parker Inc. is an eyewear products provider that offers sunglasses, blue-light-filtering lenses, contact lenses, eyeglasses, light-responsive lenses, and non-prescription lenses. The company supplies its products through its websites, retail stores, and mobile apps. It sources 29% of its products from China.

Evercore ISI’s analyst Mark Mahaney downgraded the company just last month from Outperform to In-Line as he thinks the risk/reward associated with the stock is less attractive now. Analysts anticipate WRBY to profit from e-commerce gains, increased EBITDA margins, and improved customer growth over the next 1-2 years in a recovering eyewear market. Despite this, the expected pace of this recovery isn’t very attractive for shareholders.

Regardless of the challenging environment, WRBY’s growth drivers remain solid and the management did a good job. With the company’s stock price gaining over 100% in the past year and analysts’ expectations about the gradual recovery, the company presents an attractive long-term investment opportunity.