National Vision(US:EYE) ZACKSยท2025-09-25 14:36Core 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]