Financial Data and Key Metrics Changes - Net revenue increased by 7.9%, driven by adjusted comparable store sales growth of 7.7% and growth from new store sales [17][22] - Adjusted operating income rose to $19.8 million from $14.3 million in the prior year, with adjusted operating margin increasing by 90 basis points to 4.1% [19][20] - Adjusted EPS increased to $0.13 per share from $0.12 a year ago [20] Business Line Data and Key Metrics Changes - The managed care business showed strong performance with low teens comp store sales growth, while cash pay traffic remained flat [5][24] - Average ticket increased by 7.1%, reflecting price increases and a refreshed merchandising mix [18] - Sales gains were noted in premium add-ons like superior progressive lenses and anti-reflective coatings [13] Market Data and Key Metrics Changes - Traffic from managed care customers offset a decline in cash pay traffic, with overall traffic remaining flat [24] - The company is seeing a shift in customer mix towards higher-value segments, which is expected to lead to healthier business overall [6][24] Company Strategy and Development Direction - The company is focused on transforming its merchandising and pricing strategies, with plans to modernize pricing architecture and evolve product assortment [9][10] - A new marketing campaign, "Every Eye Deserves Better," has been launched, resulting in a significant increase in unaided brand awareness [11][60] - The company aims to enhance its market position through strategic investments and cost optimization efforts [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the multi-year growth opportunity ahead, citing strong performance and positive customer responses to recent initiatives [17][24] - The company anticipates continued operating margin expansion and is closely monitoring consumer response to pricing and merchandising changes [23][24] - Future pricing actions are expected to contribute similarly to 2026 as they did in 2025 [32] Other Important Information - The company ended the quarter with a cash balance of approximately $56 million and total liquidity of $349.6 million [21] - Capital expenditures guidance was reduced to $80-$85 million, primarily due to timing of investments [25][61] Q&A Session Summary Question: What signals are you looking for to know that you're not going too far with merchandising changes? - Management is monitoring NPS and conversion rates from exam to purchase, noting positive responses from cash pay consumers adopting higher price point items [28][30] Question: What would be the contribution from pricing as you look towards 2026? - Pricing actions in Q4 are expected to yield similar contributions in 2026 as in 2025, with a focus on modernizing price points [31][32] Question: Can you provide color on market share trends? - Management believes they are gaining share on both volume and dollar basis, outpacing category growth [44] Question: What is happening with the cash pay customer segment? - There is slight acceleration in the purchase cycle for cash pay consumers, with an increase in their adoption of premium products [46][47] Question: Can you elaborate on the lens pricing actions? - The company is taking surgical increases on lens pricing, focusing on coatings and materials, while being mindful of market positioning [64] Question: What are the trends observed throughout the quarter? - Sales trends were consistent throughout Q3, with no significant variations noted [84]

Third Quarter 2025 Financial Results November 5, 2025 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements contained under "Fiscal 2025 Outlook," as well as other statements related to our current beliefs and expectations regarding the performance of our in ...

Core Insights - National Vision reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an earnings surprise of +8.33% [1] - The company achieved revenues of $487.33 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.69% and reflecting a year-over-year increase from $451.52 million [2] - National Vision's stock has increased approximately 145.7% year-to-date, significantly outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $490.34 million, and for the current fiscal year, it is $0.68 on revenues of $1.96 billion [7] - The trend of estimate revisions for National Vision was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Consumer Products - Staples industry, to which National Vision belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Core Insights - National Vision Holdings, Inc. has raised its full-year 2025 guidance for adjusted earnings, net revenue, and comparable store sales growth [1] Financial Performance - For fiscal 2025, the company projects adjusted net earnings between $0.63 and $0.71 per share, with net revenue expected to be between $1.970 billion and $1.988 billion, and adjusted comparable store sales growth of 5.0 to 6.0 percent [1] - Previously, the guidance for adjusted net earnings was $0.62 to $0.70 per share, with net revenue between $1.934 billion and $1.970 billion, and adjusted comparable store sales growth of 3.0 to 5.0 percent [2] - Analysts expect the company to report earnings of $0.69 per share on revenue of $1.96 billion for the year [2] Quarterly Results - In the third quarter, the company reported net income of $3.37 million or $0.04 per share, compared to a net loss of $8.47 million or $0.11 per share in the same quarter last year [3] - Adjusted earnings for the quarter were $0.13 per share, up from $0.12 per share in the prior year [3] - Total net revenues for the quarter increased by 7.9 percent to $487.33 million from $451.52 million in the same quarter last year [4] - Comparable store sales growth was 6.8 percent, while adjusted comparable store sales growth was 7.7 percent [4]

Financial Performance - Net revenue from continuing operations increased by 7.9% to $487.3 million in Q3 2025 compared to Q3 2024[6] - Comparable store sales growth was 6.8%, marking the 11th consecutive quarter of positive growth[6] - Adjusted Operating Income from continuing operations rose by 38.6% to $19.8 million, with an Adjusted Operating Margin improving to 4.1%[6] - Total net revenue for the three months ended September 27, 2025, was $487.33 million, a 7.9% increase from $451.52 million in the same period of 2024[35] - Net product sales reached $393.48 million, up 8.3% from $363.16 million year-over-year[35] - Net income for the nine months ended September 27, 2025, was $26.28 million, compared to $0.09 million in the same period of 2024[37] - Operating cash flow for the nine months ended September 27, 2025, was $133.13 million, an increase from $103.37 million in the prior year[37] - Net income for the three months ended September 27, 2025, was $3,372,000, compared to a loss of $8,468,000 for the same period in 2024, marking a significant turnaround[39] Outlook and Projections - The fiscal 2025 outlook for net revenue has been raised to a range of $1.970 billion to $1.988 billion, up from the previous estimate[11] - Adjusted Diluted EPS is projected to increase to a range of $0.63 to $0.71 for fiscal 2025, compared to the prior outlook[11] - The 2025 Outlook projects total comparable store sales growth from continuing operations to be between 5.5% and 6.5%[48] Store Operations - The company opened four new America's Best stores, ending the quarter with a total of 1,242 stores, reflecting a 0.9% increase in store count[7] - Comparable store sales growth from continuing operations for the three months ended September 27, 2025, was 6.8%, compared to 1.4% for the same period in 2024[48] - Adjusted Comparable Store Sales Growth from continuing operations for the nine months ended September 27, 2025, was 6.4%, up from 1.2% in the same period in 2024[48] - The Owned & Host segment's America's Best reported a comparable store sales growth of 8.1% for the three months ended September 27, 2025[48] - Eyeglass World experienced a comparable store sales growth of 5.2% for the three months ended September 27, 2025, compared to a decline of 0.9% in the same period in 2024[48] - Military segment reported a comparable store sales growth of 4.4% for the three months ended September 27, 2025[48] - Fred Meyer showed a comparable store sales growth of 4.1% for the three months ended September 27, 2025, recovering from a decline of 7.3% in the same period in 2024[48] - Adjusted Comparable Store Sales Growth from continuing operations for the three months ended September 27, 2025, was 7.7%, compared to 0.9% in the same period in 2024[48] Cost and Expenses - Costs applicable to revenue increased by 7.0% to $203.2 million, while the percentage of net revenue decreased to 41.7%[10] - The company incurred total operating expenses of $274.52 million for the three months ended September 27, 2025, compared to $270.41 million in the same period of 2024[35] - Long-term debt repayments amounted to $94.71 million for the nine months ended September 27, 2025, compared to $218.75 million in the same period of 2024[37] - Interest expense for the nine months ended September 27, 2025, was $12,901,000, compared to $11,560,000 for the same period in 2024, reflecting an increase of approximately 11.6%[39] - The company incurred stock-based compensation expenses of $17,836,000 for the nine months ended September 27, 2025, compared to $11,779,000 for the same period in 2024, indicating increased compensation costs[39] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as EBITDA, Adjusted Operating Income, and Adjusted Diluted EPS to provide a clearer picture of its operational performance[19] - Adjusted Operating Income excludes various expenses like stock-based compensation and litigation settlements, providing a more accurate reflection of core operations[22] - Adjusted Operating Margin is calculated as Adjusted Operating Income as a percentage of total net revenue, highlighting operational efficiency[23] - Adjusted EBITDA is similarly defined, excluding specific expenses to focus on ongoing operational performance[24] - Adjusted SG&A is calculated by excluding certain expenses, providing insight into the company's operational cost structure[27] - The company emphasizes that non-GAAP measures should not be viewed as alternatives to GAAP measures, as they have limitations and may not be comparable across companies[30] - The company is committed to transparency by providing reconciliations of non-GAAP to GAAP financial measures in its reports[31] Tax and Liabilities - The company reported an income tax provision of $13,010,000 for the nine months ended September 27, 2025, compared to $2,239,000 for the same period in 2024, indicating a significant increase in tax obligations[39] - Total current assets decreased to $220.19 million as of September 27, 2025, from $249.83 million as of December 28, 2024[34] - Total liabilities decreased to $1.1 billion as of September 27, 2025, from $1.2 billion as of December 28, 2024[34] - Cash and cash equivalents at the end of the period were $57.57 million, down from $82.68 million a year earlier[37]

Core Viewpoint - National Vision Holdings, Inc. reported strong financial performance for the third quarter ended September 27, 2025, indicating effective execution of its initiatives [1]. Financial Performance - The company demonstrated a strong performance this quarter, attributed to focused execution on its initiatives [1]. - The merchandise strategy implemented by the company is yielding positive results [1]. Operational Highlights - Associates within the company are adopting new selling techniques, contributing to improved performance [1]. - The new strategy, referred to as "America's Be," is part of the company's ongoing efforts to enhance sales and customer engagement [1].

Core Points - National Vision Holdings, Inc. has launched its annual scholarship program for eligible optometry students, offering awards of up to $7,500 [1] - The theme for this year's scholarship program is "Emerging Technology in Optometry," encouraging third- and fourth-year optometry students to submit written or video essays [1]

Core Insights - National Vision (EYE) has experienced significant share price growth of 166.5% over the past year, contrasting with a 13.3% decline in the industry and an 18.2% increase in the S&P 500 [1][9] - The company is positioned as a solid wealth creator for investors, supported by healthy fundamentals and strong growth opportunities [1] Company Overview - National Vision is a leading optical retailer in the U.S., operating 1,240 retail stores across four brands and associated omnichannel consumer websites as of June 28, 2025 [2] - The company operates through one reportable segment, Owned & Host, which includes two owned brands: America's Best Contacts and Eyeglasses and Eyeglass World [2] Growth Drivers - The upward trend in share price is attributed to ongoing strategic transformation initiatives that are gaining traction, particularly in key customer segments [3] - Recent branding refresh and identity overhaul for America's Best, along with modifications to the doctor model at Eyeglass World in Florida, aim to enhance patient experience [4] - The Owned & Host segment is benefiting from positive comparable store sales and new store openings, including exclusive partnerships with Florence by Mills and Pair Eyewear [5] Operational Performance - The company is expanding exam capacity through remote capabilities, with approximately two-thirds of stores now equipped with remote technology, achieving over 1 million remote exams conducted in the second quarter [6][9] - Fiscal 2025 revenue outlook has been raised to a range of $1.93-$1.97 billion, with adjusted EPS estimates increased to 62-70 cents [7] Financial Metrics - In the second quarter, gross margin expanded by 2166 basis points despite a 3.5% rise in the cost of revenues, while operating margin expanded by 206 basis points [9] - The Zacks Consensus Estimate for 2025 EPS remains unchanged at 68 cents, with a long-term EPS growth rate estimated at 22.7%, compared to the industry's 12.9% [13]

Company Overview - National Vision (EYE) shares increased by 6.4% to close at $26.43, supported by higher trading volume compared to normal sessions [1] - The stock has gained 2.7% over the past four weeks [1] Market Context - The price rise was driven by investor optimism following the Federal Reserve's approval of a rate cut, bringing the overnight funds rate to a range of 4.00%-4.25% [2] Earnings Expectations - National Vision is expected to report quarterly earnings of $0.12 per share, unchanged from the previous year, with revenues projected at $473.11 million, reflecting a 4.8% increase year-over-year [3] - The consensus EPS estimate has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] Industry Comparison - National Vision is part of the Zacks Consumer Products - Staples industry, where Procter & Gamble (PG) saw a 1.9% decline in its last trading session, with a 0.5% return over the past month [4] - PG's consensus EPS estimate has also remained unchanged at $1.91, representing a -1% change compared to the previous year [5]

Group 1 - National Vision has introduced its new Chief Executive Officer, Alex Wilkes, and Chief Financial Officer, Chris Laden, during a presentation [1] - The discussion includes insights into the health of the consumer, particularly focusing on the lower-income consumer segment, which remains a significant part of National Vision's customer base [2]