[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)

Core Insights - National Vision is undergoing a significant brand transformation to better align with the evolving needs of consumers and the healthcare landscape, reflecting its purpose and momentum as it enters a new chapter [1][2][3] Company Overview - National Vision Holdings, Inc. operates over 1,200 stores across 38 states and Puerto Rico, focusing on making quality eye care and eyewear more affordable and accessible [5] Brand Transformation - The new brand identity includes a design system that emphasizes simplicity and accessibility, featuring a new symbol inspired by the eye's iris and a refined color palette that reflects natural hues [2][3] - The rebranding is part of a broader strategy to modernize the company's presence both in-store and online, starting with the visual identities of its retail brands, including America's Best [3] Strategic Goals - The company aims to build a more dynamic and responsive organization that connects deeply with consumers, doctors, and associates, enhancing its mission through innovative approaches [2][3]

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].