National Vision(US:EYE)2021-11-10 19:07Financial Data and Key Metrics Changes - Net revenue increased nearly 20% compared to Q3 2019, with adjusted comparable store sales growth of 13.3% over the same period [7][19] - Adjusted operating income rose 110% to $54.7 million, and adjusted EPS increased 134% to $0.38 [25][26] - Year-to-date net revenue increased 21% versus 2019, totaling $1.6 billion, with adjusted diluted EPS more than doubling to $1.35 [26][27] Business Line Data and Key Metrics Changes - The growth brands, America's Best and Eyeglass World, led the top-line strength, with unit growth of nearly 7% over the last 12 months [20][13] - 14 new stores were opened during the quarter, bringing the total to 1,262 locations [7][20] Market Data and Key Metrics Changes - The optical industry remains highly fragmented, presenting significant opportunities for market share growth [10] - The company experienced slightly positive comparable performance versus 2020, despite challenges from COVID-19 variants and a muted back-to-school season [10][11] Company Strategy and Development Direction - The company plans to continue opening new stores, with a target of about 75 stores in 2021 and a solid pipeline for next year [13][84] - Marketing investments are being increased to drive customer traffic, with a focus on digital and omnichannel initiatives [15][17] - The company aims to maintain a strong relationship with optometrists and invest in programs to enhance retention and exam capacity [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience and ability to navigate the evolving environment, despite uncertainties related to COVID-19 [32][42] - The outlook for fiscal 2021 projects net revenue between $2.04 billion and $2.06 billion, with adjusted comparable store sales growth of 21% to 22% [33][34] Other Important Information - The company released its first corporate responsibility report, highlighting its ESG efforts [8][44] - A $50 million share repurchase program was announced, alongside a $50 million debt repayment [8][30] Q&A Session Summary Question: Comments on back-to-school season and fourth-quarter profitability - Management noted a muted back-to-school season and explained that while sales are expected to grow over 2019, profitability may decline due to increased marketing and wage investments [49][56] Question: Optical market growth expectations - Management indicated that the optical market remains unpredictable due to COVID-19, but they expect continued growth driven by customer transactions [61][62] Question: Share gains and marketing investments - Management believes they are still gaining market share and plans to increase marketing investments to support growth [69][70] Question: Customer purchasing patterns in high gas price environments - Management acknowledged that customers operate on tight budgets, which can affect purchasing patterns, but they remain resilient in both good and bad economic times [89][90] Question: Store pipeline for 2022 - Management confirmed a strong store pipeline for 2022, with no issues finding good locations and a target of 75 new stores [84][85]