Warby Parker (WRBY) is expected to post a "challenging" Q1, UBS Securities said, adding that results will likely be impacted by "severe winter weather" and increasing pressure on the consumer from rising gasoline prices.

The brokerage said in a Monday research note that the retailer's "core cash paying customer may have faced added stress," pointing to higher fuel costs and broader macro uncertainty, with pressure especially affecting younger and lower-income consumers.

UBS noted that Q1 growth would represent the company's slowest pace on record, highlighting the extent of a slowdown. It added that recent commentary suggests Warby is "braced for more downside vs upside risk from the consumer."

The investment firm also flagged that margins may face pressure from tariffs, cost deleverage in COGS and SG&A, and other input costs, though some of that could be offset by price increases, mix shift toward higher-margin products and cost mitigation efforts.

However, the firm said the "smart glasses opportunity" remains the key near-term driver for the stock and highlighted it as a potential catalyst.

UBS has a neutral rating on the company's stock, with a $25 price target.

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