[Q2 2025 Financial Results Overview](index=1&type=section&id=National%20Vision%20Holdings%2C%20Inc.%20Reports%20Second%20Quarter%202025%20Financial%20Results) The CEO discusses strong performance driven by the company's transformation program and strategic initiatives [CEO Statement](index=1&type=section&id=CEO%20Statement) The CEO attributes strong performance to a transformation program and expresses confidence in future growth - Strong performance is credited to the successful execution of a transformation program, including a new lifestyle selling approach and refined assortment and pricing architecture[3](index=3&type=chunk) - The company is encouraged by customer response to enhanced product offerings and an elevated shopping experience at America's Best, aligning with the new brand promise, 'Every Eye Deserves Better'[3](index=3&type=chunk) - Future growth will be driven by modernized brand advertising, personalized marketing, merchandise mix optimization, and disciplined cost management[3](index=3&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) The company reports significant growth in revenue and profitability for both Q2 and year-to-date 2025 [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Summary) Q2 2025 saw a 7.7% net revenue increase and a 69.1% rise in Adjusted Operating Income Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | | Net Revenue from continuing operations | $486.4 million | +7.7% | | Comparable Store Sales Growth | 6.5% | - | | Adjusted Comparable Store Sales Growth | 5.9% | - | | Income from continuing operations | $8.7 million | Up from -$1.0 million | | Diluted EPS from continuing operations | $0.11 | Up from -$0.01 | | Adjusted Operating Income | $23.8 million | +69.1% | | Adjusted Operating Margin | 4.9% | Up from 3.1% | | Adjusted Diluted EPS | $0.18 | Up from $0.15 | - Comparable store sales growth was driven by a **higher average ticket** and strength in the managed care cohort, though partially offset by a slight decrease in customer traffic[7](index=7&type=chunk) - The company opened **eight new America's Best stores** and closed five, ending the quarter with 1,240 stores, representing a 2.0% growth in store count[7](index=7&type=chunk) [Year-to-Date 2025 Financial Highlights](index=2&type=section&id=Year-to-Date%202025%20Summary) The first half of 2025 shows a 6.7% revenue growth and a 35.7% increase in Adjusted Operating Income YTD 2025 Key Financial Metrics (vs. YTD 2024) | Metric | YTD 2025 | Change vs. YTD 2024 | | :--- | :--- | :--- | | Net Revenue from continuing operations | $996.7 million | +6.7% | | Comparable Store Sales Growth | 5.2% | - | | Adjusted Comparable Store Sales Growth | 5.7% | - | | Income from continuing operations | $22.9 million | Up from $10.7 million | | Diluted EPS from continuing operations | $0.29 | Up from $0.14 | | Adjusted Operating Income | $65.1 million | +35.7% | | Adjusted Operating Margin | 6.5% | Up from 5.1% | | Adjusted Diluted EPS | $0.52 | Up from $0.44 | [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Highlights%20as%20of%20June%2028%2C%202025) The company maintained a cash balance of $48.5 million and settled $84.8 million of convertible notes - The company's cash balance was **$48.5 million** as of June 28, 2025[10](index=10&type=chunk) - Total debt stood at **$272.4 million**, consisting of first lien term loans, revolving loans, and finance lease obligations[10](index=10&type=chunk) - On May 15, 2025, the company settled the remaining **$84.8 million** of its convertible senior notes due 2025[10](index=10&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Fiscal%202025%20Outlook) The company raises its full-year 2025 guidance for key metrics including revenue and earnings per share [Updated Fiscal 2025 Outlook](index=2&type=section&id=Updated%20Fiscal%202025%20Outlook) The updated guidance projects higher sales growth, net revenue, and adjusted operating income for fiscal 2025 Updated Fiscal 2025 Outlook | Metric | Prior Outlook (May 7, 2025) | Updated Outlook (Aug 6, 2025) | | :--- | :--- | :--- | | New Stores | 30-35 | ~32 | | Adjusted Comparable Store Sales Growth | 1.5% - 3.5% | 3.0% - 5.0% | | Net Revenue | $1.919B - $1.955B | $1.934B - $1.970B | | Adjusted Operating Income | $81M - $92M | $85M - $95M | | Adjusted Diluted EPS | $0.59 - $0.67 | $0.62 - $0.70 | | Capital Expenditures | $90M - $95M | $87M - $90M | - The 53rd week of fiscal 2025 is estimated to contribute approximately **$35 million** to net revenue and **$3 million** to Adjusted Operating Income[9](index=9&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the condensed consolidated balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $1.97 billion and total stockholders' equity of $850.6 million Condensed Consolidated Balance Sheets (in Thousands) | | As of June 28, 2025 | As of December 28, 2024 | | :--- | :--- | :--- | | **Total current assets** | **$217,701** | **$249,828** | | **Total assets** | **$1,968,352** | **$2,007,771** | | **Total current liabilities** | **$418,246** | **$468,274** | | **Total liabilities** | **$1,117,771** | **$1,191,438** | | **Total stockholders' equity** | **$850,581** | **$816,333** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) The company reports Q2 net revenue of $486.4 million and income from continuing operations of $8.7 million Condensed Consolidated Statements of Operations (in Thousands) | | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | Total net revenue | $486,423 | $451,733 | | Income from operations | $16,449 | $591 | | Income (loss) from continuing operations | $8,725 | $(1,041) | | Diluted EPS from continuing operations | $0.11 | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $86.5 million for the first six months, with significant use for debt repayment Condensed Consolidated Statements of Cash Flows (Six Months Ended, in Thousands) | | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $86,500 | $75,448 | | Net cash used for investing activities | $(32,924) | $(38,043) | | Net cash used for financing activities | $(78,825) | $(7,440) | | Net change in cash | $(25,249) | $29,965 | [Reconciliation of Non-GAAP to GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20to%20GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-GAAP metrics to their closest GAAP equivalents [Reconciliation of Adjusted Operating Income and Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income%20and%20Adjusted%20EBITDA) GAAP income is reconciled to Adjusted Operating Income and Adjusted EBITDA by excluding specific items Reconciliation of Adjusted Operating Income (Q2 2025, in thousands) | | Amount | | :--- | :--- | | Income from continuing operations | $8,725 | | Interest expense, net | $4,210 | | Income tax provision | $3,514 | | Stock-based compensation expense | $5,306 | | Amortization of acquisition intangibles | $169 | | ERP and CRM implementation expenses | $1,846 | | Other | $31 | | **Adjusted Operating Income** | **$23,801** | Reconciliation of Adjusted EBITDA (Q2 2025, in thousands) | | Amount | | :--- | :--- | | EBITDA from continuing operations | $38,985 | | Stock-based compensation expense | $5,306 | | ERP and CRM implementation expenses | $1,846 | | Other | $31 | | **Adjusted EBITDA** | **$46,168** | [Reconciliation of Adjusted Diluted EPS and Adjusted SG&A](index=13&type=section&id=Reconciliation%20of%20Adjusted%20Diluted%20EPS%20and%20Adjusted%20SG%26A) GAAP Diluted EPS and SG&A are adjusted for items like stock-based compensation to derive non-GAAP figures Reconciliation of Adjusted Diluted EPS (Q2 2025) | | Per Share Amount | | :--- | :--- | | Diluted EPS from continuing operations | $0.11 | | Stock-based compensation expense | $0.07 | | ERP and CRM implementation expenses | $0.02 | | Tax effects | $(0.02) | | Other adjustments | $0.00 | | **Adjusted Diluted EPS** | **$0.18** | Reconciliation of Adjusted SG&A (Q2 2025, in thousands) | | Amount | | :--- | :--- | | SG&A from continuing operations | $247,167 | | Stock-based compensation expense | $(5,306) | | ERP and CRM implementation expenses | $(1,846) | | Other | $(31) | | **Adjusted SG&A** | **$239,984** | [Reconciliation of Adjusted Comparable Store Sales Growth](index=14&type=section&id=Reconciliation%20of%20Adjusted%20Comparable%20Store%20Sales%20Growth) Total comparable store sales growth is adjusted for unearned and deferred revenue effects Comparable Store Sales Growth Reconciliation (Q2 2025) | Metric | Growth Rate | | :--- | :--- | | Total comparable store sales growth | 6.5% | | Adjustments for unearned & deferred revenue | (0.6)% | | **Adjusted Comparable Store Sales Growth** | **5.9%** | [Other Information](index=3&type=section&id=Other%20Information) This section includes details on upcoming company events and definitions of non-GAAP financial measures [Company Announcements](index=3&type=section&id=Company%20Announcements) The company announces an upcoming Investor Day and provides details for its Q2 2025 earnings conference call - An Investor and Analyst Day is scheduled for November 17, 2025, in New York[13](index=13&type=chunk) - A conference call to discuss Q2 2025 results was scheduled for August 6, 2025, at 8:30 a.m. Eastern Time[14](index=14&type=chunk) [Non-GAAP Financial Measures Definitions](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The report defines non-GAAP measures used and explains their relevance for assessing core operating performance - The company uses non-GAAP measures to supplement GAAP information, believing they help investors compare operating performance on a consistent basis by excluding certain items[18](index=18&type=chunk) - Adjusted Comparable Store Sales Growth is used by management for key operating decisions as it provides timely information on the core retail metrics of transaction number and value[19](index=19&type=chunk)

Accessibility StatementSkip Navigation Experience the full interactive Multichannel News Release here: https://www.multivu.com/national-vision- holdings/9348251-en-national-vision-brand-refresh-strategic-transformation "As we continue to evolve to meet the needs of today's consumers and patients, it's important that our corporate brand reflects who we are and where we're headed," said Alex Wilkes, CEO at National Vision. "This new identity is more than a visual evolution—it's a powerful expression of our pu ...

Company Performance - National Vision (EYE) has shown a year-to-date return of approximately 143.2%, significantly outperforming the average return of 5.3% for Consumer Staples companies [4] - The Zacks Consensus Estimate for EYE's full-year earnings has increased by 8.2% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - In comparison, Nestle SA (NSRGY) has a year-to-date return of 14.3% and a consensus EPS estimate increase of 2.9% over the past three months, also holding a Zacks Rank of 2 (Buy) [5] Industry Context - National Vision is part of the Consumer Products - Staples industry, which includes 35 individual stocks and currently ranks 91 in the Zacks Industry Rank [6] - The average performance of stocks in the Consumer Products - Staples industry has been a loss of 2.7% this year, highlighting National Vision's superior performance within this group [6] - The Consumer Staples sector, which includes 178 individual stocks, is currently ranked 11 in the Zacks Sector Rank [2]

Core Viewpoint - National Vision (EYE) has shown strong stock performance, with a 14.8% increase over the past month and a 135.5% gain since the beginning of the year, significantly outperforming the Zacks Consumer Staples sector and the Zacks Consumer Products - Staples industry [1] Financial Performance - National Vision has consistently exceeded earnings expectations, reporting an EPS of $0.34 against a consensus estimate of $0.29 in its last earnings report [2] - For the current fiscal year, the company is projected to achieve earnings of $0.62 per share on revenues of $1.94 billion, reflecting a 19.23% increase in EPS and a 2.88% increase in revenues [3] - The next fiscal year forecasts earnings of $0.79 per share on $2 billion in revenues, indicating a year-over-year change of 27.82% in EPS and 3.13% in revenues [3] Valuation Metrics - National Vision's stock trades at a premium valuation of 39.6X current fiscal year EPS estimates compared to the peer industry average of 19.2X [7] - On a trailing cash flow basis, the stock trades at 15X versus the peer group's average of 13.6X, with a PEG ratio of 2.05, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - The stock holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - National Vision has a Value Score of C, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of B [6][9]

Company Performance - National Vision (EYE) has returned 137.3% year-to-date, significantly outperforming the Consumer Staples sector, which has returned an average of 5.6% [4] - The Zacks Consensus Estimate for National Vision's full-year earnings has increased by 8.2% over the past three months, indicating improving analyst sentiment [3] Industry Context - National Vision is part of the Consumer Products - Staples industry, which consists of 35 companies and currently ranks 90 in the Zacks Industry Rank. The average performance of stocks in this industry has been a loss of 3% this year [6] - Another notable performer in the Consumer Staples sector is Nestle SA (NSRGY), which has seen a year-to-date increase of 20.1% and also holds a Zacks Rank of 2 (Buy) [4][5] Sector Ranking - National Vision is ranked 13 in the Zacks Sector Rank among 178 companies in the Consumer Staples group, which measures the strength of individual sector groups [2] - The Zacks Rank system, which National Vision currently holds at 2 (Buy), emphasizes earnings estimates and revisions, suggesting potential for outperformance in the near term [3]

Core Insights - National Vision Holdings, Inc.'s America's Best brand is driving revenue growth, supported by the strength of managed care and favorable optical retail industry trends [1][3][7] - The company has experienced a significant stock price increase of 75.6% year-to-date, outperforming the industry and the S&P 500 [2] - National Vision's strategic transformation focuses on addressing optometrist shortages and enhancing customer experience through segmentation and digitization [5][7] Financial Performance - National Vision has a market capitalization of $1.81 billion and has consistently beaten earnings expectations, with an average surprise of 81.81% over the last four quarters [2] - The Zacks Consensus Estimate for 2025 earnings per share is 62 cents, with projected revenues of $1.94 billion, indicating a 2.9% year-over-year improvement [9] Growth Drivers - The America's Best brand is enhancing its value offerings through promotions and exclusive partnerships, contributing to revenue growth [3][7] - The company has implemented remote examining capabilities, allowing for increased examination capacity and a 3.1% growth in comparable store sales in Q1 2025 [4][5] Challenges - National Vision faces a weak solvency position, with cash and cash equivalents of $80 million against short-term debt of $101.5 million, raising concerns amid macroeconomic pressures [6][8] - Rising expenses, particularly a 6.4% year-over-year increase in SG&A expenditures, are impacting profitability in a challenging economic environment [8]

Company Overview - National Vision (EYE) shares have increased by approximately 25.1% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Fresh estimates for National Vision have trended upward in the past month, with the consensus estimate shifting by 66.67% [2] VGM Scores - National Vision has a Growth Score of B, a Momentum Score of D, and a Value Score of C, resulting in an aggregate VGM Score of C [3] Outlook - The upward trend in estimates is promising, and National Vision holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - National Vision is part of the Zacks Consumer Products - Staples industry, where Church & Dwight (CHD) has seen a 7.4% gain over the past month [5] - Church & Dwight reported revenues of $1.47 billion for the last quarter, reflecting a year-over-year decline of 2.4% [5] - For the current quarter, Church & Dwight is expected to post earnings of $0.85 per share, indicating an 8.6% decrease from the previous year [6]

Group 1 - The article discusses the investment philosophy of seeking quality companies at reasonable valuations, inspired by renowned investors like Warren Buffett, Peter Lynch, and Terry Smith [1] - It emphasizes the importance of fundamentals in driving share prices over the long term, particularly focusing on predicting earnings per share [1] Group 2 - There is a disclosure indicating a beneficial long position in the shares of EYE, highlighting the author's personal investment stance [2] - The article expresses the author's opinions without any compensation from companies mentioned, ensuring an independent viewpoint [2]

National Vision (EYE) FY Conference Summary Company Overview - National Vision operates in the optical retail industry, offering three main products: eye exams, eyeglasses, and contact lenses [3][4] - The company is positioned as a low-cost provider in a fragmented market, which generated $70 billion in sales last year across 45,000 retail outlets [4][5] - National Vision has over 1,200 stores and reported $1.8 billion in sales last year [5][6] Key Points and Arguments Business Model and Market Position - National Vision emphasizes its value pricing strategy, catering to a demographic that is increasingly reliant on insurance for eye care [5][6] - The company has the largest collection of employed optometrists in the nation, which is expected to play a larger role in healthcare as demand for eye care services increases [5][6] Post-COVID Transformation - The company faced challenges post-COVID due to a reduction in the availability of medical professionals, impacting the ability to conduct eye exams [7][8] - National Vision implemented a remote medicine approach, allowing optometrists to conduct eye exams from home, which has improved efficiency [9][10] Strategic Initiatives - A new management team was brought in to lead a transformation focused on expanding target demographics, revising pricing strategies, enhancing customer experience, and optimizing cost structures [10][12] - The company aims to increase its addressable market by targeting managed care consumers, progressive lens users, and outside prescription consumers [17][18] Financial Performance - In Q1, National Vision reported a 5.7% increase in net revenue and a 21.8% increase in adjusted operating income [30][31] - The company raised its guidance for 2025, projecting a same-store sales growth of 1.5% to 3.5% and adjusted operating income between $81 million and $92 million [31][33] Marketing and Customer Engagement - National Vision is modernizing its marketing approach to better target its evolving consumer base, moving away from a one-size-fits-all strategy to a more personalized experience [26][27] - The company is enhancing its in-store experience and training staff to better engage with consumers who have insurance benefits [21][22] Product Assortment and Pricing - The company plans to increase the percentage of its frame assortment priced above $99 from 20% to 40% by the end of 2025, aligning with the purchasing power of its target demographic [23][24] - New premium brands are being introduced to attract higher-income consumers [24][25] Additional Important Insights - National Vision conducts over 7 million eye exams annually, with a significant portion of consumers engaging through their online platform [36] - The management team expresses confidence in the company's transformation and growth potential, highlighting a strong organizational culture and commitment to innovation [28][29][35]

Core Viewpoint - National Vision Holdings Inc. has emerged as a significant stock in the market, experiencing a surge of over 40% in the past week, driven by strong earnings and a double upgrade from Bank of America [2][9]. Company Overview - National Vision is valued at $1.5 billion and operates over 1,300 retail optical locations in the U.S., including brands like America's Best Contacts & Eyeglasses and Eyeglass World, providing eye exams, glasses, and contact lenses [3]. Earnings Performance - The company's first-quarter earnings report exceeded expectations, with non-GAAP EPS at 34 cents, beating estimates by 3 cents, and revenue reaching $510.3 million, a nearly 6% increase year-over-year [5]. Strategic Changes - Management attributed the positive results to strategic changes implemented in late 2024, including a new pricing architecture, improved recruitment and retention of optometrists, and new remote exam capabilities [6]. Guidance and Market Reaction - National Vision raised its full-year 2025 guidance, signaling strong future performance, which has contributed to the stock's recent rally [7]. Analyst Upgrades - Bank of America issued a rare double upgrade for National Vision, moving it from Underperform to Buy, with a new price target set at $22, indicating potential for further gains [9]. Future Outlook - Analysts highlight that National Vision's initiatives are effective, with a strong setup for the latter half of 2025, focusing on promotional frame traffic and improved marketing execution [10]. Cost Structure and Risks - Less than 10% of National Vision's cost of goods sold is exposed to China, which mitigates tariff-related risks, and recent pricing changes have improved margins without negatively impacting customer satisfaction [11].