National Vision(US:EYE)2023-03-01 20:05Financial Data and Key Metrics Changes - Adjusted comparable store sales growth declined 2.4% compared to an increase of 1.2% in the fourth quarter of 2021, driven by lower traffic partially offset by an increase in average ticket [2] - Adjusted diluted EPS was a loss of $0.08 compared to earnings of $0.13 per share in the prior year period [3] - Net revenue for the fourth quarter decreased 1.9% compared to the prior year due to macroeconomic headwinds and constraints to exam capacity [122] - Adjusted operating income was a loss of $6.8 million compared to adjusted operating income of $16.8 million in the prior-year period [94] - For the year, net revenue decreased approximately 3.6% versus 2021, with adjusted operating income of $87.8 million and adjusted diluted EPS of $0.65 per share [69] Business Line Data and Key Metrics Changes - Managed care sales saw positive comp growth for both the quarter and the year, indicating an increase in customers with vision insurance [58] - The company opened 23 new America's Best stores, resulting in a 1.7% increase in total store count sequentially over the third quarter of 2022 [93] - Inventory per store declined 6% on a year-over-year basis, indicating effective inventory management [70] Market Data and Key Metrics Changes - The pandemic created a national shortage of optometrists, leading to increased retirements and reduced availability of doctors [22] - The company noted a significant trade down from higher-income consumers, with a shift towards more budget-conscious purchasing behavior [8][110] Company Strategy and Development Direction - The company is focusing on expanding remote care capabilities, improving doctor recruitment and retention, and enhancing omnichannel capabilities [85][90] - Plans for 2023 include opening approximately 65 to 70 new stores and continuing to invest in technology and digitalization initiatives [96] - The company aims to leverage remote care and scheduling options to address doctor capacity constraints and improve service delivery [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, particularly its impact on budget-conscious consumers [5][81] - The company anticipates a gradual return to a more normalized optical purchasing cycle and improved consumer sentiment [6][8] - Management believes that the actions taken will position the company for long-term success despite short-term margin pressures [90][128] Other Important Information - The company returned capital to stockholders with the repurchase of 2.7 million shares for $80 million, with $50 million remaining under the current share repurchase authorization [4] - The company expects adjusted operating income between $48 million and $66 million for 2023, with adjusted diluted EPS between $0.42 and $0.60 per share [96] Q&A Session Summary Question: What factors contributed to the comp shortfall in 2022? - Management attributed the comp shortfall primarily to doctor capacity challenges and macroeconomic pressures affecting consumer behavior [130] Question: How does the company plan to address the doctor shortage? - The company is implementing flexible scheduling options and enhancing variable compensation programs to improve doctor recruitment and retention [11][135] Question: What is the outlook for insured versus uninsured consumers? - Management expects the percentage of managed care consumers to continue growing, which should help offset challenges from uninsured customers [112][140] Question: How is the competitive environment evolving? - The company noted that traditional higher-cost segments are losing market share to value segments, where the company is positioned as a winner [145] Question: What are the expectations for remote care implementation in 2023? - The company plans to roll out remote care capabilities to at least 200 stores in 2023, building on the success of previous implementations [40][145]