Financial Highlights - Net revenues for Q3 2025 reached $4873 million, a 79% increase year-over-year[10] - Adjusted comparable store sales growth was 77% in Q3 2025[10] - Adjusted operating income for Q3 2025 was $198 million[10] - Adjusted diluted EPS for Q3 2025 was $013[10] - Year-to-date net revenues reached $148 billion, a 71% increase[13] - Year-to-date adjusted comparable store sales growth was 64%[13] - Year-to-date adjusted operating income was $849 million[13] - Year-to-date adjusted diluted EPS was $065[13] Store Count and Growth - The company ended Q3 2025 with 1242 stores, a 09% increase[23] - America's Best stores saw an 81% comparable store sales growth in Q3 2025, compared to 12% in Q3 2024[24] Fiscal 2025 Outlook - The company estimates the 53rd week of fiscal 2025 will contribute approximately $35 million to net revenue, and approximately $3 million to adjusted operating income[41] - Updated fiscal 2025 outlook projects net revenue between $1970 billion and $1988 billion[42]

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]

Financial Data and Key Metrics Changes - The company reported strong growth in the second quarter, with a significant contribution from ticket sales despite a slight decline in traffic [32][34] - Operating margin expanded by 180 basis points year to date, with gross margin improvements also noted [37][39] Business Line Data and Key Metrics Changes - The company is focusing on evolving its ticket through price and assortment changes, indicating room for growth in this area [32] - Managed care customers are underdeveloped, with the company aiming to increase its customer count in this segment [34] Market Data and Key Metrics Changes - The consumer base is evolving, with a shift from a lower-income cash pay market to a more diverse demographic, including managed care and progressive customers [11][30] - The company has seen resilience in lower-income consumers, with some signs of acceleration in purchase cycles [4][5] Company Strategy and Development Direction - The company is pivoting its business model to better serve existing consumers by redefining value, particularly for managed care members [12][51] - Significant management changes have been made to enhance operational efficiency and adapt to market demands [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer health, noting that consumers are gravitating towards higher-end products [53][54] - The company is focused on maintaining its position as a value leader while adapting to changing consumer expectations [12][51] Other Important Information - The company has implemented a remote care technology strategy to address doctor scarcity and improve patient access [19][45] - A new brand identity campaign has been launched, receiving positive initial consumer feedback [15] Q&A Session Summary Question: What are the expectations for the consumer environment in the second half? - Management is optimistic about consumer health, noting stability and increased traffic in managed care segments [53][54] Question: How is pricing affected by higher tariff costs? - The company has had minimal tariff exposure and has not seen significant consumer pushback on price increases [56][57] Question: What are the expectations for inventory growth into the second half? - The company operates a showroom-based inventory model, allowing for efficient inventory management [60] Question: What is the outlook for margins in the coming years? - Management is focused on expanding operating margins through strategic initiatives and cost control measures [39][61] Question: Will there be more market share consolidation in 2026? - Management expects consolidation to continue at a similar pace, influenced by private equity activity [63][65]