What Happened?
A number of stocks fell in the afternoon session after the spike in oil prices threatened to siphon another round of discretionary spending away from store registers and into gas tanks.
With WTI above $105 and gasoline already at $4 per gallon, every additional dollar at the pump is a dollar not spent on apparel, electronics, or home goods a dynamic that hits discretionary retailers hardest given their already-stretched lower-income customer base. Combined with rising freight costs, tariff pressures on imported goods, and the prospect of weaker summer foot traffic if travel and tourism patterns disrupt, retailers faced a particularly difficult margin and comp-sales setup heading into back-to-school season.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Home Improvement Retailer company Floor And Decor (NYSE: FND) fell 4.1%. Is now the time to buy Floor And Decor? Access our full analysis report here, it’s free.
- Specialty Retail company Tractor Supply (NASDAQ: TSCO) fell 3.9%. Is now the time to buy Tractor Supply? Access our full analysis report here, it’s free.
- Beauty and Cosmetics Retailer company Warby Parker (NYSE: WRBY) fell 4.4%. Is now the time to buy Warby Parker? Access our full analysis report here, it’s free.
Zooming In On Warby Parker (WRBY)
Warby Parker’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 4.1% on the news that BTIG reiterated a Buy rating and a $32.00 price target on the stock ahead of the company's first-quarter earnings report.
The investment firm anticipates first-quarter results will align with expectations and that full-year results could reach the upper end of guidance. However, BTIG also noted that achieving this might be challenging if unsteady trends in the core business continue. Looking further ahead, the firm mentioned Warby Parker's upcoming launch of AI-powered glasses in partnership with Google, but stated that this collaboration is unlikely to be a significant factor for the business until 2027 and beyond.
Warby Parker is down 2.2% since the beginning of the year, and at $22.13 per share, it is trading 26.8% below its 52-week high of $30.23 from December 2025. Investors who bought $1,000 worth of Warby Parker’s shares at the IPO in September 2021 would now be looking at an investment worth $406.07.
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