Core Insights - National Vision Holdings, Inc. (EYE) is gaining market share across four sub-segments of Owned and Host, supported by growth drivers such as the America's Best brand and new promotional initiatives [1][3] - The company is facing challenges from rising expenses and high dependence on a limited number of vendors, which may negatively impact sales [1][10][11] Company Performance - Over the past year, National Vision's stock has declined by 48.2%, contrasting with a 6.2% growth in the industry and a 24.4% rise in the S&P 500 [2] - The company has a market capitalization of $1.58 billion and has surpassed earnings estimates in three of the last four quarters, achieving an average earnings surprise of 93.7% [2] Growth Initiatives - National Vision is expanding its exam capacity and improving in-store efficiencies through remote medicine technology and electronic health records, which are expected to enhance sales [4] - The company has completed a store fleet review, resulting in a plan to close 39 stores by 2026, projected to improve adjusted EBITDA by approximately $4 million [5] - New store openings are being moderated to 30-35 America's Best stores in fiscal 2025, allowing for more investment in existing operations [6] Industry Trends - A 2023 report indicates that 82% of respondents use some form of vision correction, highlighting a strong market for optical retail [7] - The World Health Organization reported that nearly 2.2 billion individuals globally have vision impairment, with 1 billion cases unaddressed, indicating a significant market opportunity [9] Financial Estimates - The Zacks Consensus Estimate for National Vision's 2024 earnings per share (EPS) is 49 cents, with revenues projected at $1.84 billion, reflecting a 13.3% decline from the previous year [12]

Group 1 - National Vision Holdings (NASDAQ: EYE) is expected to be at the high end of its FY24 guidance, indicating strong performance potential [1] - The author utilizes a diverse investment strategy that includes fundamental, technical, and momentum investing approaches to enhance the investment process [1] - The article serves as a platform for tracking investment ideas and connecting with like-minded investors [1] Group 2 - There are no disclosed positions in any of the companies mentioned, and no plans to initiate any positions within the next 72 hours [2] - The article reflects the author's personal opinions and is not compensated beyond the platform used for publication [2] - Seeking Alpha does not provide investment recommendations or advice, and past performance is not indicative of future results [3]

Earnings Performance - Adjusted EPS for Q3 2024 was 12 cents, surpassing the Zacks Consensus Estimate of 5 cents and up from 11 cents in the year-ago period [1] - GAAP income from continuing operations was 3 cents per share, down from 23 cents in the prior-year quarter [1] - Shares of EYE dropped 3.1% following the earnings announcement, closing at $11.82 [2] Revenue Performance - Q3 2024 net revenues from continuing operations totaled $451.5 million, missing the Zacks Consensus Estimate by 0.03% [3] - Top line rose 2.9% year-over-year, driven by new store sales, Adjusted Comparable Store Sales Growth, and unearned revenues [4] - Comparable store sales growth was 1.4% year-over-year, with adjusted comparable store sales growth at 0.9% [4] - The company opened 18 new stores, ending the quarter with 1,231 stores, a 4.9% year-over-year increase in store count [4] Margin Performance - Gross profit in Q3 2024 rose 2.6% year-over-year to $261.6 million, with gross margin expanding 110 basis points despite a 3.3% rise in cost of revenues [5] - SG&A expenses fell 1.6% year-over-year to $224 million [5] - Adjusted operating margin expanded 207 basis points year-over-year to 8.3% [5] Financial Position - Cash and cash equivalents at the end of Q3 2024 were $81.2 million, down from $179.5 million at the end of Q2 2024 [6] - Cumulative net cash flow from operating activities was $103.4 million, compared to $153.3 million a year ago [6] 2024 Outlook - Full-year net revenues for 2024 are expected to be in the range of $1.820-$1.840 billion, unchanged from previous guidance [7] - Adjusted comparable store sales are expected to grow 0.5%-1.5%, unchanged from previous guidance [7] - Adjusted EPS for 2024 is estimated to be in the range of 45-50 cents, unchanged from previous guidance [7] Portfolio Review Update - The company identified less than 5% of its total store fleet as not meeting profitability thresholds, with plans to close 39 stores by the end of fiscal 2026 and convert four Eyeglass World stores to America's Best by the end of fiscal 2024 [8] - In fiscal 2025, new store openings will be temporarily moderated to 30-35 stores, with plans to return to a more recent store opening cadence thereafter [9] Business Performance and Strategy - America's Best continued to drive sales performance, supported by strength in the managed care business [10] - Customers responded well to the Wise Buys eyeglass promotion, enhancing value offerings and attracting new customers [11] - The company is leveraging remote capabilities to expand exam capacity and provide doctors with new ways to practice [11] - Progress in transformation initiatives includes the completion of the store fleet review, implementation of new traffic-driving initiatives, expansion of exam capacity, and improved remote exam efficiency [12] Industry Comparison - Haemonetics (HAE) reported Q2 fiscal 2025 adjusted earnings of $1.12 per share, surpassing the Zacks Consensus Estimate by 2.8%, with revenues of $345.5 million beating the consensus mark by 0.7% [14] - Intuitive Surgical (ISRG) posted Q3 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%, with revenues of $2.04 billion surpassing the consensus estimate by 1.2% [15] - Boston Scientific Corporation (BSX) reported Q3 2024 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate by 8.6%, with revenues of $4.21 billion beating the consensus estimate by 4.5% [16]

Financial Data and Key Metrics Changes - Revenues increased by 2.9% to $451.5 million, driven by strong managed care results, partially offset by softness in cash pay and lower e-commerce revenue [8][40] - Adjusted operating income rose by 22.2% to $14.3 million, resulting in adjusted diluted earnings per share of $0.12 [9][49] - Adjusted comparable store sales growth was 0.9%, with America's Best at +1.2% and Eyeglass World at -0.9% [9][44] Business Line Data and Key Metrics Changes - Unit growth in America's Best and Eyeglass World increased by 5.4% on a combined basis, ending the quarter with 1,231 stores [41] - Eyeglass World was negatively impacted by Hurricane Helene, affecting approximately 30% of its stores located in Florida [9][12] - The company plans to close 39 stores by 2026, including 21 America's Best, 9 Eyeglass World, and 9 Fred Meyer stores, expecting approximately $4 million in adjusted EBITDA improvement [12][60] Market Data and Key Metrics Changes - E-commerce performance was impacted by the transition of the discountcontacts.com website, which temporarily disrupted marketing and features [42] - Remote exams represented about 11% of exams in remote-enabled states for the quarter, with remote doctors seeing more patients per day than in-store doctors for the first time [23][24] Company Strategy and Development Direction - The company is moderating new store growth in 2025, planning to open 30 to 35 new America's Best stores, focusing on enhancing patient and customer experience [15][62] - Strategic initiatives include traffic-driving promotions, new product launches, and expanding optometric capacity [17][20] - The company aims to strengthen its comparable store sales performance and operational execution while maintaining a healthy store fleet [62][63] Management's Comments on Operating Environment and Future Outlook - Management noted continued inconsistency in consumer behavior and a choppy start to the fourth quarter due to Hurricane Helene [58][102] - The company expects to see improvements in the top line from investments in the store fleet and modernization efforts [72][75] - Management remains optimistic about the potential for consumer confidence to improve following recent elections [108] Other Important Information - The company ended the quarter with a cash balance of approximately $81.2 million and total liquidity of $374.8 million [52] - Year-to-date operating cash flow was $103.4 million, with capital expenditures of $63.5 million primarily focused on new and existing stores [55] Q&A Session Summary Question: What does the stabilization phase mean for the margin profile in 2025? - Management anticipates that the 2025 margin profile will be similar to the end of 2024, considering headwinds from incentive compensation and benefits from fleet optimization [70][71] Question: How is the company approaching pricing and tariffs? - The company is committed to being a value-based brand while exploring pricing opportunities, especially in relation to managed care consumers [76][78] - Less than 10% of costs are subject to tariffs, and the company has moved 90% of its private label production out of China [80] Question: What are the future plans for promotions? - Promotions are expected to continue, particularly targeting cash pay customers, with positive learnings from previous promotional efforts [83][85] Question: What is the status of remote capabilities and exam capacity? - The company has 730 remote-enabled stores and is expanding remote capabilities, which have shown promising results in efficiency [86][90] Question: Can you provide details on the store closures and their profitability? - The closures targeted less than 5% of the fleet, focusing on unprofitable stores, with decisions based on individual store characteristics [91][92] Question: What are the expectations for capital expenditures moving forward? - The company anticipates a moderation in capital expenditures as it reallocates capital to enhance the store fleet and operational initiatives [114][116]

Exhibit 99.1 National Vision Holdings, Inc. Reports Third Quarter 2024 Financial Results Results Reflect Ongoing Strength in Managed Care with Growth in America's Best as Transformation Initiatives Progress Third quarter 2024 highlights compared to Q3 2023: • Net revenue from continuing operations of $451.5 million, an increase of 2.9% • Comparable store sales growth of 1.4% and Adjusted Comparable Store Sales Growth of 0.9% • Net loss from continuing operations of $(8.4) million, Diluted EPS from continuin ...

National Vision Holdings, Inc.'s (EYE) growth is backed by the consistent market expansion of the Owned and Host segment. The company's strategic progress in terms of expanding exam capacity, recruitment and retention efforts and remote exam initiatives is highly encouraging. However, weak solvency and an ailing capital structure are concerning. Mounting expenses due to slow economic conditions also add to the worry. In the past year, this Zacks Rank #3 (Hold) company's shares have lost 33.4% against the in ...

In an exclusive retail partnership with National Vision's America's Best brand, the launch expands awardwinning actor Millie Bobby Brown's beloved beauty, lifestyle and fashion line to the American eyewear market. The collection, developed with eyewear manufacturer Mondottica Group, features a full range of sun and optical eyewear styles designed to curate confidence in the next generation. The inclusive and intentional eyewear styles were crafted to make the wearer feel joyful and empowered through the bra ...

National Vision Holdings, Inc. (EYE) delivered an adjusted EPS (earnings per share) of 15 cents in the second quarter of 2024 compared with 17 cents in the year-ago period. The figure surpassed the Zacks Consensus Estimate of 6 cents. The GAAP loss from continuing operations was 1 cent per share compared to an EPS of 5 cents in the prioryear quarter. Revenues in Detail On Feb 23, 2024, National Vision completed the termination of the Walmart Management and Services Agreement and discontinued the former Lega ...

National Vision (EYE) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this discount optical retailer and eye care provider would post earnings of $0.28 per share when it actually produced earnings of $0.30, delivering a surprise of 7.14%. Ove ...

Exhibit 99.1 National Vision Holdings, Inc. Reports Second Quarter 2024 Financial Results Announces New Actions to Accelerate Transformation Second quarter 2024 highlights compared to Q2 2023: • Net revenue from continuing operations of $451.7 million, an increase of 4.6% • Comparable store sales growth of 2.2% and Adjusted Comparable Store Sales Growth of 2.4% • Net loss from continuing operations of $(1.0) million, Diluted EPS from continuing operations of $(0.01) • Adjusted Operating Income from continui ...