National Vision(US:EYE)2025-11-05 11:06Financial 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]