Financial Data and Key Metrics Changes - In Q4 2024, sales increased by 3.9% to $437.3 million, marking the eighth consecutive quarter of positive adjusted comparable store sales [11][12] - Adjusted operating income rose to $3.2 million, while adjusted diluted earnings per share was a loss of $0.04 [13][61] - For the full year 2024, net revenue increased by 3.8% to $1.823 billion, with adjusted diluted earnings per share at $0.52, exceeding prior guidance [14][63] Business Line Data and Key Metrics Changes - Adjusted comparable store sales for Q4 were up 1.5%, driven by America's Best's growth of 2%, while Eyeglass World's comparable store sales declined by 1.7% due to Hurricane Helene [11][12] - Managed care sales comped high single digits throughout the year, contributing to approximately 40% of total revenues [14][22] Market Data and Key Metrics Changes - The company experienced a decline in cash-pay sales, which was offset by strong managed care sales [12][14] - The impact of weather and consumer sentiment was noted, particularly in February, leading to a cautious outlook for the near term [25][26] Company Strategy and Development Direction - The company is focusing on transforming its business by enhancing customer segmentation and personalizing messaging to attract higher-value customers [21][23] - A strategic shift is underway to target managed care customers, who now represent a significant portion of the customer base [22][34] - Investments in technology and operational efficiencies are being prioritized to improve customer experience and drive profitability [18][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early results from transformation initiatives, despite recent negative traffic trends [25][26] - The company is preparing for a wider range of scenarios in its guidance due to uncertainties in consumer sentiment and weather impacts [26][70] Other Important Information - The company announced a leadership change with the appointment of a new CFO, Chris Laden, effective March 31 [9][10] - The company is implementing a comprehensive review of its store fleet, with plans to take action on 43 stores through fiscal year 2026 [20] Q&A Session Summary Question: How has the company factored in resources and risks from the pivot to a more moderate middle-income consumer? - Management indicated that this segment is already a significant part of the current customer base, and efforts are focused on enhancing the customer experience for these groups [78][80] Question: Can you provide context on recent performance trends and their impact on guidance? - Management acknowledged strong performance in January but noted choppy trends in the last two weeks of February, leading to a more conservative guidance approach [86][87] Question: What is the plan for remote rollout in 2025? - The company plans to continue opening remote-enabled stores where laws allow and integrate remote capabilities as part of its ongoing operations [92][95] Question: How is managed care expected to impact top-line guidance in 2025? - Managed care is projected to grow at high single digits, contributing significantly to the overall revenue, while cash-pay consumers face more challenges [108][110] Question: Can you elaborate on the drivers of comparable store sales in 2025? - Management expects growth to come equally from traffic and average ticket increases, with positive trends observed from recent initiatives [100][102]