Warby Parker’s stock market listing today, along with Allbirds’ initial public offering expected in the coming weeks, will add two high-profile consumer goods brands to a stock market that lately has shown little love for similar businesses. In the past two years, Casper and The Honest Co. have been pummeled on Wall Street, with their stocks dropping 33% or more from their IPO price, after reporting slow revenue growth and little in the way of profits. Warby Parker and Allbirds may also struggle.
One reason is valuation. Both Allbirds and Warby Parker last raised money privately at valuations well above where established public counterparts in the same industry, such as Nike and eyeglass giant EssilorLuxottica, trade. Measured against those older firms, Allbirds and Warby Parker seem likely to suffer a sharp drop in value once they go public.
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