Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

13. Warby Parker Inc. (NYSE:WRBY)

D1 Capital Partners’ Equity Stake: $128.38 Million

Number of Hedge Fund Holders as of Q3 2024: 26

Warby Parker Inc. (NYSE:WRBY) is a healthcare company that provides eyewear products. It also offers eyeglasses, sunglasses, light-responsive lenses, and contact lenses. These services are available online and in 269 stores across the U.S. and Canada. The stock is up by about 58.59% for the year on the company showing strong business momentum amid robust revenue growth.

Warby Parker Inc. (NYSE:WRBY) reported a strong performance in the third-quarter. Revenue was up 13.3% to $192.4 million, helped by gains in active customers. E-commerce revenue grew by 1% year-over-year, with a 35% surge in single-vision glasses and contact lens sales. Warby Parker Inc.’s (NYSE:WRBY) foray into providing comprehensive vision care has been a major factor in its growth. The company’s value proposition to customers has improved, and revenue streams have diversified.

Warby Parker Inc.’s (NYSE:WRBY) customer base continues to expand at an impressive rate, having expanded by 5.6% in the third quarter to 2.43 million active customers. The average revenue per customer has also increased to $305, a 7.5% year-over-year improvement. Amid the customer growth, the eyewear company raised its full-year revenue growth guidance to between 14% and 15%. Successful integration of in-network insurance partnerships, strategic expansion into physical stores, and improvements to e-commerce platforms are expected to accelerate growth.

TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Warby Parker Inc. (NYSE:WRBY) in its Q2 2024 investor letter:

“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. Warby Parker Inc. (NYSE:WRBY), a specialty retailer of eyewear products, rose 18%. Its first quarter results surpassed expectations with strength in single-vision glasses and a return to growth in its digital channel due to recent marketing efforts. Additionally, forward revenue and profits expectations were increased.”