National Vision(EYE) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Results Overview The CEO discusses strong performance driven by the company's transformation program and strategic initiatives CEO Statement 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] - 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] - Future growth will be driven by modernized brand advertising, personalized marketing, merchandise mix optimization, and disciplined cost management[3] Financial Performance The company reports significant growth in revenue and profitability for both Q2 and year-to-date 2025 Second Quarter 2025 Financial Highlights 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] - 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] Year-to-Date 2025 Financial Highlights 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 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] - Total debt stood at $272.4 million, consisting of first lien term loans, revolving loans, and finance lease obligations[10] - On May 15, 2025, the company settled the remaining $84.8 million of its convertible senior notes due 2025[10] Fiscal 2025 Outlook The company raises its full-year 2025 guidance for key metrics including revenue and earnings per share Updated Fiscal 2025 Outlook 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] Financial Statements This section presents the condensed consolidated balance sheets, statements of operations, and cash flows Condensed Consolidated Balance Sheets 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 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 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 This section provides detailed reconciliations of non-GAAP metrics to their closest GAAP equivalents Reconciliation of Adjusted Operating Income and Adjusted EBITDA 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 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 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 This section includes details on upcoming company events and definitions of non-GAAP financial measures Company Announcements 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] - A conference call to discuss Q2 2025 results was scheduled for August 6, 2025, at 8:30 a.m. Eastern Time[14] Non-GAAP Financial Measures Definitions 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] - 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]