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Yahoo
30-07-2025
- Business
- Yahoo
National Vision Releases Annual Sustainability Report Highlighting 2024 Progress
DULUTH, Ga., July 30, 2025--(BUSINESS WIRE)--National Vision, Inc., one of the largest optical retail companies in the U.S., released its 2024 Sustainability Report, "A World Worth Seeing." The report focuses on the company's performance across its Social, Employees, Environment and Governance (SEE+G) framework, and reflects continued progress against the environmental, social and governance (ESG) issues that matter most to the company's business and stakeholders. "This past year, our refreshed leadership team made significant strides to accelerate our business transformation, including the implementation of new strategic initiatives to expand our customer base, enhance profitability and create long-term value for shareholders," said CEO Reade Fahs. "Alongside these advancements, we continued our mission of increasing accessibility and sustainability, never wavering in our commitment to provide essential eye care and eyewear to communities around the country and around the world." Highlights from the 2024 Sustainability Report include: Social: Impacted more than 1.1 million lives through National Vision's philanthropic activities Employees: Strengthened commitment to internal development, with more than half of new managers promoted from within National Vision Environment: Implemented waste reduction measures across National Vision's network of labs and stores, eliminating most of the need for paper and achieving considerable paper savings Governance: Advanced 3rd party risk management, including publishing a first-ever Sustainable Supply Chain Strategy The report is aligned with recognized guidelines including those developed by the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI) Standards and the United Nations' Sustainable Development Goals. The report is available online at About National Vision Holdings, Inc. National Vision Holdings, Inc. (NASDAQ: EYE) is one of the largest optical retail companies in the United States with over 1,200 stores in 38 states and Puerto Rico. With a mission of helping people by making quality eye care and eyewear more affordable and accessible, the company operates four retail brands: America's Best, Eyeglass World, and Vista Opticals inside select Fred Meyer stores and on select military bases, and an e-commerce website offering a variety of products and services for customers' eye care needs. For more information, please visit View source version on Contacts Tamara GonzalezVice President of Investor Carly SchenckDirector of Communicationsmedia@ Sign in to access your portfolio
Business Wire
30-07-2025
- Business
- Business Wire
National Vision Releases Annual Sustainability Report Highlighting 2024 Progress
DULUTH, Ga.--(BUSINESS WIRE)--National Vision, Inc., one of the largest optical retail companies in the U.S., released its 2024 Sustainability Report, 'A World Worth Seeing.' The report focuses on the company's performance across its Social, Employees, Environment and Governance (SEE+G) framework, and reflects continued progress against the environmental, social and governance (ESG) issues that matter most to the company's business and stakeholders. "This past year, our refreshed leadership team made significant strides to accelerate our business transformation, including the implementation of new strategic initiatives to expand our customer base, enhance profitability and create long-term value for shareholders,' said CEO Reade Fahs. 'Alongside these advancements, we continued our mission of increasing accessibility and sustainability, never wavering in our commitment to provide essential eye care and eyewear to communities around the country and around the world." Highlights from the 2024 Sustainability Report include: Social: Impacted more than 1.1 million lives through National Vision's philanthropic activities Impacted more than 1.1 million lives through National Vision's philanthropic activities Employees: Strengthened commitment to internal development, with more than half of new managers promoted from within National Vision Strengthened commitment to internal development, with more than half of new managers promoted from within National Vision Environment: Implemented waste reduction measures across National Vision's network of labs and stores, eliminating most of the need for paper and achieving considerable paper savings Implemented waste reduction measures across National Vision's network of labs and stores, eliminating most of the need for paper and achieving considerable paper savings Governance: Advanced 3rd party risk management, including publishing a first-ever Sustainable Supply Chain Strategy The report is aligned with recognized guidelines including those developed by the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI) Standards and the United Nations' Sustainable Development Goals. The report is available online at About National Vision Holdings, Inc. National Vision Holdings, Inc. (NASDAQ: EYE) is one of the largest optical retail companies in the United States with over 1,200 stores in 38 states and Puerto Rico. With a mission of helping people by making quality eye care and eyewear more affordable and accessible, the company operates four retail brands: America's Best, Eyeglass World, and Vista Opticals inside select Fred Meyer stores and on select military bases, and an e-commerce website offering a variety of products and services for customers' eye care needs. For more information, please visit
Yahoo
10-06-2025
- Business
- Yahoo
EYE Q1 Earnings Call: National Vision Discusses Transformation Strategy, Leadership Transition, and Tariff Impact
Optical retailer National Vision (NYSE:EYE) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 5.7% year on year to $510.3 million. The company's full-year revenue guidance of $1.94 billion at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.34 per share was 10.5% above analysts' consensus estimates. Is now the time to buy EYE? Find out in our full research report (it's free). Revenue: $510.3 million vs analyst estimates of $502.6 million (5.7% year-on-year growth, 1.5% beat) Adjusted EPS: $0.34 vs analyst estimates of $0.31 (10.5% beat) Adjusted EBITDA: $64.07 million vs analyst estimates of $60.83 million (12.6% margin, 5.3% beat) The company slightly lifted its revenue guidance for the full year to $1.94 billion at the midpoint from $1.93 billion Management raised its full-year Adjusted EPS guidance to $0.63 at the midpoint, an 8.6% increase Operating Margin: 5.1%, in line with the same quarter last year Locations: 1,237 at quarter end, up from 1,201 in the same quarter last year Same-Store Sales rose 5.5% year on year (0.4% in the same quarter last year) Market Capitalization: $1.66 billion National Vision's first quarter performance was driven by the company's ongoing transformation initiatives, including new approaches to pricing, product assortment, and targeted customer segmentation. CEO Reade Fahs credited these strategies with improving results across managed care, progressive, and outside prescription customer segments, which together saw double-digit comparable sales growth. The rollout of remote eye exam technology helped address prior challenges with optometrist shortages, stabilizing exam capacity and keeping store coverage healthy. Fahs highlighted that the company's pricing actions raised average ticket values without reducing conversion rates or customer satisfaction, indicating customer acceptance of these changes. Product mix shifts toward higher-value frames and investments in store associate training also contributed to the positive momentum, while ongoing operational discipline supported bottom line growth. The first quarter's results reinforced management's belief that National Vision's transformation is gaining traction. Looking forward, National Vision's raised full-year guidance is underpinned by continued investment in digital tools, personalized marketing, and new product offerings aimed at expanding its reach among higher-value customer segments. Incoming CEO Alex Wilkes outlined priorities to further segment and personalize the customer experience, while enhancing store capabilities and modernizing the product mix. Management emphasized the importance of cost efficiency, particularly as the company prepares for potential increases in tariffs on imported eyewear. CFO Chris Laden stated, 'We believe that we can mitigate potential higher tariff costs with pricing actions and cost reduction efforts to neutralize the tariff impact.' The leadership team acknowledged macroeconomic uncertainty and intends to balance growth investments with disciplined expense management as transformation initiatives continue to roll out during the year. Management attributed the quarter's performance to pricing actions, higher-value product launches, targeted customer segmentation, and the successful adoption of digital and remote exam capabilities. Targeted segmentation strategy: Focused efforts on managed care, progressive, and outside prescription customers led to double-digit comparable sales growth within these segments. These customers, who represent about half of National Vision's base, were identified as underdeveloped but high-value groups, helping to expand the company's addressable market. Pricing actions well-received: New pricing structures were implemented, particularly in the fourth and first quarters, resulting in higher average ticket values. Management reported no negative impact on exam-to-purchase conversion rates or Net Promoter Scores, suggesting customer acceptance of higher price points and an ability to offset inflationary pressures such as tariffs. Product mix modernization: The company began introducing more branded and higher-priced frames, including launches of L.A.M.B. and Ted Baker eyewear. Management noted that after the second quarter, the proportion of frames priced above $99 will double compared to the end of last year, aiming to attract a broader customer base and enhance the in-store experience. Digital and remote exam adoption: Approximately two-thirds of stores now offer remote eye exams, allowing more efficient use of optometrist resources and helping ensure broad store coverage. This technology is now embedded in operations, and management expects further efficiency gains over time. Leadership transition and new hires: The company announced a planned CEO succession, with Alex Wilkes set to take over from Reade Fahs. Other recent leadership additions include CFO Chris Laden and new executives with backgrounds in retail and healthcare, supporting the transformation agenda and operational execution. National Vision's outlook is shaped by continued transformation initiatives, evolving customer preferences, and the need to manage external cost pressures such as tariffs. Enhancing customer experience: Management is rolling out new digital selling tools, improving CRM systems, and personalizing marketing to better engage higher-value customer segments. These investments are intended to drive sales growth and foster customer loyalty as the market becomes more competitive. Tariff mitigation and cost control: The company is preparing for potential increases in tariffs on imported frames, with less than 10% of its cost of goods exposed to China. Management believes that pricing actions and ongoing cost reduction efforts can offset these headwinds, but notes the situation is fluid and not yet fully reflected in guidance. Store optimization and product innovation: Efforts to optimize store formats, test smaller locations, and introduce new branded products are expected to broaden the customer base and improve store economics. National Vision is also investing in associate training and evolving its assortment to support higher average ticket values and margin resilience. In the coming quarters, the StockStory team will be watching (1) the impact of ongoing product launches and pricing actions on average ticket values and customer mix, (2) execution of digital marketing and CRM enhancements to drive personalized engagement, and (3) the company's ability to manage cost pressures, particularly if tariffs on imported frames increase. Progress on store optimization and expansion will also be important signposts. National Vision currently trades at a forward P/E ratio of 34.8×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
07-05-2025
- Business
- Business Wire
National Vision Holdings, Inc. Reports First Quarter 2025 Financial Results
DULUTH, Ga.--(BUSINESS WIRE)--National Vision Holdings, Inc. (NASDAQ: EYE) ('National Vision,' 'we,' 'our,' 'us' or the 'Company') today reported its financial results for the first quarter ended March 29, 2025. 'Our first quarter results are a testament to the entire team's disciplined execution against the new strategic approach our leadership team began to implement last quarter,' said Reade Fahs, National Vision's CEO. 'We are seeing immediate impact from the initial wave of transformation actions with a return to mid-single digit comp performance and solid growth in bottom line results. The strength of these results reinforces our confidence in the long-term potential of our go-forward strategy and initiatives.' Alex Wilkes, National Vision's President added, 'The intentional, strategic shift to broaden our exposure to existing higher value customer segments coupled with our roadmap of future initiatives reinforces our confidence in our operational and financial growth, even amidst an increasingly uncertain environment. Looking ahead, we plan to continue introducing new lifestyle selling techniques, enhancing our branded frame assortment, and improving our digital experience to delight our customers and deliver the value they expect from us both in-store and online. All of this work will remain underpinned by our prudent approach to expense management, tariff mitigation efforts, and operational excellence to deliver improved profitability and sustainable value for shareholders.' This release includes certain Non-GAAP Financial Measures that are not recognized under generally accepted accounting principles ('GAAP'). Please see 'Non-GAAP Financial Measures' and 'Reconciliation of Non-GAAP to GAAP Financial Measures' below for more information. During fiscal 2024, the Company ceased its Walmart and AC Lens operations and, accordingly, the condensed consolidated financial statements reflect the results of our former Legacy segment and the substantial majority of AC Lens operations as discontinued operations for all periods presented. Unless otherwise noted, amounts and disclosures in this press release relate to the Company's continuing operations. First Quarter 2025 Summary Net revenue increased 5.7% to $510.3 million compared to the prior-year period and was primarily driven by Adjusted Comparable Store Sales Growth and growth from new store sales, partially offset by the effect of unearned revenue and the effect of closed stores. Net revenue includes a negative (1.5)% impact from the timing of unearned revenue in the current-year period compared with the prior-year period. Comparable store sales growth was 4.1% and Adjusted Comparable Store Sales Growth was 5.5%, primarily due to higher average ticket, a slight increase in customer traffic and continued strength in the Company's managed care cohort. The Company opened nine new America's Best stores, closed nine Fred Meyer stores and three America's Best stores, and ended the period with 1,237 stores. Overall, store count grew 3.0% from March 30, 2024 to March 29, 2025. Costs applicable to revenue increased 4.9% to $205.2 million. As a percentage of net revenue, costs applicable to revenue decreased 30 basis points to 40.2%, mainly due to growth and improvement in product margins of eyeglass frames and lenses, and growth from other add-on sales, partially offset by a decrease in product margins of contact lenses and higher optometrist-related costs related to revenue growth. SG&A increased 6.4% to $255.5 million. As a percentage of net revenue, SG&A increased 40 basis points to 50.1% of revenue. The primary drivers of SG&A growth were increases in stock-based compensation and cash compensation expenses related to revenue and profitability growth, partially offset by a non-recurring litigation settlement from the prior year, lower advertising investments and other expenses. Adjusted SG&A increased 4.6% to $241.1 million and represented 47.2% of net revenue, a decrease of 50 basis points driven by lower advertising investments, partially offset by higher cash compensation expenses, as discussed above. Income from continuing operations increased to $14.2 million compared to $11.8 million in the same period in 2024. Income from continuing operations margin increased to 2.8% compared to 2.4% in the same period in 2024. Diluted EPS from continuing operations was $0.18 compared to $0.15 in the same period in 2024. Adjusted Diluted EPS increased to $0.34 compared to $0.29 in the same period in 2024. The net change in margin on unearned revenue negatively impacted both Diluted EPS and Adjusted Diluted EPS by $(0.05). Adjusted Operating Income increased 21.8% to $41.3 million compared with the same period of 2024. Adjusted Operating Margin increased to 8.1% compared with 7.0% for the same period in 2024. The net change in margin on unearned revenue negatively impacted income from continuing operations by $(4.1) million and Adjusted Operating Income by $(5.5) million. Balance Sheet and Cash Flow Highlights as of March 29, 2025 National Vision's cash balance was $80.0 million as of March 29, 2025. The Company had no borrowings under its $300.0 million first lien revolving credit facility, exclusive of letters of credit of $6.4 million. Total debt was $346.1 million as of March 29, 2025, consisting of outstanding first lien term loans, 2.50% convertible senior notes due on May 15, 2025 ('2025 Notes') and finance lease obligations, net of unamortized discounts. Fiscal 2025 Outlook The Company is raising certain elements of its fiscal 2025 outlook for the 53 weeks ending January 3, 2026, as set forth below. The Company estimates the 53rd week of fiscal 2025 will contribute approximately $35 million to net revenue, and approximately $3 million to Adjusted Operating Income. The fiscal 2025 outlook information provided in this release includes Adjusted Operating Income and Adjusted Diluted EPS guidance. The Company is not able to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including taxes and non-recurring items, which would be included in GAAP results. The fiscal 2025 outlook is forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. These uncertainties include, but are not limited to, dynamic market conditions, unexpected disruptions including additional regulatory actions impacting international trade such as tariffs, and other macroeconomic risks and uncertainties. Actual results may vary and those variations may be material. As such, the Company's results may not fall within the ranges contained in its fiscal 2025 outlook. The Company uses these forward-looking measures internally to assess and benchmark its results and strategic plans. See 'Forward-Looking Statements' below. Conference Call Details The Company will host a conference call to discuss the first quarter 2025 financial results and fiscal-year 2025 guidance today, May 7, 2025, at 8:30 a.m. Eastern Time. To pre-register for the conference call and obtain a dial-in number and passcode please refer to the 'Investors' section of the Company's website at A live audio webcast of the conference call will be available on the 'Investors' section of the Company's website at where presentation materials will be posted prior to the conference call. A replay of the audio webcast will also be archived on the 'Investors' section of the Company's website. About National Vision Holdings, Inc. National Vision Holdings, Inc. (NASDAQ: EYE) is one of the largest optical retail companies in the United States with over 1,200 stores in 38 states and Puerto Rico. With a mission of helping people by making quality eye care and eyewear more affordable and accessible, the company operates four retail brands: America's Best Contacts & Eyeglasses, Eyeglass World, and Vista Opticals inside select Fred Meyer stores and on select military bases, and an e-commerce website offering a variety of products and services for customers' eye care needs. For more information, please visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements contained under 'Fiscal 2025 Outlook' as well as other statements related to our current beliefs and expectations regarding the performance of our industry, the Company's strategic direction, market position, prospects including remote medicine and optometrist recruiting and retention initiatives, and future results. You can identify these forward-looking statements by the use of words such as 'outlook,' 'guidance,' 'believes,' 'expects,' 'potential,' 'continues,' 'may,' 'will,' 'should,' 'could,' 'seeks,' 'projects,' 'predicts,' 'intends,' 'plans,' 'estimates,' 'anticipates' or variations of these words or other comparable words. Caution should be taken not to place undue reliance on any forward-looking statement as such statements speak only as of the date when made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Forward-looking statements are not guarantees and are subject to various risks and uncertainties, which may cause actual results to differ materially from those implied in forward-looking statements. Such factors include, but are not limited to, market volatility, an overall decline in the health of the economy, global macroeconomic conditions and other factors that may affect consumer spending or behavior; our ability to successfully implement our transformation initiatives, or anticipate the impact of important strategic initiatives; our ability to recruit and retain vision care professionals for in-store roles or to provide remote care offerings; our ability to compete in the highly competitive optical retail industry; the success of our marketing, advertising and promotional efforts; our ability to maintain, protect, and enhance the value of our owned brands; our ability to open and operate new stores (including as a result of store conversions) in a timely and cost-effective manner or to successfully enter new markets; our ability to increase sales in existing stores and to successfully reinvest in existing stores; our ability to successfully implement our pricing strategies; changes in the cost of inputs, and factors such as wage rate increases, inflation, cost increases, increases in the price of raw materials and energy prices; significant capital requirements to fund our expanding business including updating our Enterprise Resource Planning ('ERP') and Customer Relationship Management ('CRM'), and other technological, systems and capabilities; the potential for our growth strategy to strain our existing resources and cause the performance of our existing stores to suffer; risks associated with leasing substantial amounts of space, including future increases in occupancy costs; our ability to successfully manage the distinct risks faced by our e-commerce and omni-channel business; our ability to retain our existing senior management team or attract qualified new personnel; seasonal fluctuations in our operating results and inventory levels fluctuate; the potential impacts of catastrophic events, including changing climate and weather patterns leading to severe weather and natural disasters; the potential for certain technological advances, greater availability of, or increased consumer preferences for, vision correction alternatives to prescription eyeglasses or contact lenses, or future drug development for the correction of vision-related problems to reduce the demand for our products; our ability to successfully manage our inventory balances and inventory shrinkage; the potential for the loss of, or disruption in the operations of, one or more of our distribution centers or optical laboratories, which would impact our ability to process and fulfill customer orders and deliver our products in a timely manner, or at all, or result in quality issues; the performance of our Host brands and our ability to maintain or extend our operating relationships with our Host partners; impacts resulting from the termination of our partnership with Walmart; our investments in technological innovators in the optical retail industry, including artificial intelligence; sustainability issues, including those related to climate change; our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors; risks associated with vendors from whom our products are sourced and our dependence on a limited number of suppliers; the impact of any significant failure, inadequacy, interruption or security breach affecting our information technology systems, or those of our vendors; our reliance on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues; our ability to comply with state, local and federal vision care and healthcare laws and regulations, as well as managed vision care laws and regulations; liability stemming from rapidly changing and increasingly stringent laws, regulations, contractual obligations, and industry standards relating to privacy, data security and data protection; product liability, product recall or personal injury issues; our ability to comply with laws, regulations and enforcement activities or changes in statutory, regulatory, accounting and other legal requirements; the outcome of legal proceedings relating to our business operations; the protection and validity of our intellectual property; risks related to our indebtedness; changes in interest rates; restrictions in our credit agreement that limit our flexibility in operating our business; risks related to conversion of the 2025 Notes; and risks related to owning our common stock. Additional information about these and other factors that could cause National Vision's results to differ materially from those described in the forward-looking statements can be found in filings by National Vision with the Securities and Exchange Commission ('SEC'), including our latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are accessible on the SEC's website at These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Non-GAAP Financial Measures To supplement the Company's financial information presented in accordance with GAAP and aid understanding of the Company's business performance, the Company uses certain non-GAAP financial measures, namely 'EBITDA,' 'Adjusted Operating Income,' 'Adjusted Operating Margin,' 'Adjusted EBITDA,' 'Adjusted EBITDA Margin,' 'Adjusted Diluted EPS,' 'Adjusted Comparable Stores Sales Growth,' 'Adjusted SG&A,' and 'Adjusted SG&A Percent of Net Revenue.' We believe EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, and Adjusted SG&A Percent of Net Revenue assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses these non-GAAP financial measures to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. To supplement the Company's comparable store sales growth presented in accordance with GAAP, the Company provides 'Adjusted Comparable Store Sales Growth,' which is a non-GAAP financial measure we believe is useful because it provides timely and accurate information relating to the two core metrics of retail sales: number of transactions and value of transactions. Management uses Adjusted Comparable Store Sales Growth as the basis for key operating decisions, such as allocation of advertising to particular markets and implementation of special marketing programs. Accordingly, we believe that Adjusted Comparable Store Sales Growth provides timely and accurate information relating to the operational health and overall performance of each brand. We also believe that, for the same reasons, investors find our calculation of Adjusted Comparable Store Sales Growth to be meaningful. EBITDA: We define EBITDA from continuing operations as net income (loss), minus income (loss) from discontinued operations, net of tax, plus interest expense (income), net, income tax provision, and depreciation and amortization. Adjusted Operating Income: We define Adjusted Operating Income from continuing operations as net income (loss), minus income (loss) from discontinued operations, net of tax, plus interest expense (income), net and income tax provision, further adjusted to exclude stock-based compensation expense, (gain) loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, amortization of acquisition intangibles, Enterprise Resource Planning ('ERP') and Customer Relationship Management ('CRM') implementation expenses, shareholder activism costs, severance and employee-related costs associated with organizational restructuring and certain other expenses. Adjusted Operating Margin: We define Adjusted Operating Margin from continuing operations as Adjusted Operating Income from continuing operations as a percentage of total net revenue. Adjusted EBITDA: We define Adjusted EBITDA from continuing operations as net income (loss), minus income (loss) from discontinued operations, net of tax, plus interest expense (income), net, income tax provision and depreciation and amortization, further adjusted to exclude stock-based compensation expense, (gain) loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, ERP and CRM implementation expenses, shareholder activism, severance and employee-related costs associated with restructuring and certain other expenses. Adjusted EBITDA Margin: We define Adjusted EBITDA Margin from continuing operations as Adjusted EBITDA from continuing operations as a percentage of total net revenue. Adjusted Diluted EPS: We define Adjusted Diluted EPS from continuing operations as diluted earnings (loss) per share, minus diluted earnings (loss) per share from discontinued operations, adjusted for the per share impact of stock-based compensation expense, (gain) loss on extinguishment of debt, asset impairment, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expenses, amortization of acquisition intangibles, amortization of debt discounts and deferred financing costs of our term loan borrowings, amortization of the conversion feature and deferred financing costs related to our 2025 Notes when not required under U.S. GAAP to be added back for diluted earnings (loss) per share, derivative fair value adjustments, ERP and CRM implementation expenses, shareholder activism, severance and employee-related costs associated with restructuring and certain other expenses, and related tax effects. Adjusted SG&A: We define Adjusted SG&A from continuing operations as SG&A from continuing operations adjusted to exclude stock-based compensation expense, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expense, ERP and CRM implementation expenses, shareholder activism, severance and employee-related costs associated with restructuring and certain other expenses. Adjusted SG&A Percent of Net Revenue: We define Adjusted SG&A Percent of Net Revenue from continuing operations as Adjusted SG&A from continuing operations as a percentage of total net revenue. Adjusted Comparable Store Sales Growth: We measure Adjusted Comparable Store Sales Growth as the increase or decrease in sales recorded by the comparable store base in any reporting period, compared to sales recorded by the comparable store base in the prior reporting period, which we calculate as follows: (i) sales are recorded on a cash basis (i.e. when the order is placed and paid for or submitted to a managed care payor, compared to when the order is delivered), utilizing cash basis point of sale information from stores; (ii) stores are added to the calculation during the 13th full fiscal month following the store's opening; (iii) closed stores are removed from the calculation for time periods that are not comparable; (iv) sales from partial months of operation are excluded when stores do not open or close on the first day of the month; and (v) when applicable, we adjust for the effect of the 53rd week. Quarterly, year-to-date and annual adjusted comparable store sales are aggregated using only sales from all whole months of operation included in both the current reporting period and the prior reporting period. When a partial month is excluded from the calculation, the corresponding month in the subsequent period is also excluded from the calculation. There may be variations in the way in which some of our competitors and other retailers calculate comparable store sales. As a result, our adjusted comparable store sales may not be comparable to similar data made available by other retailers. EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, Adjusted SG&A Percent of Net Revenue and Adjusted Comparable Store Sales Growth are not recognized terms under U.S. GAAP and should not be considered as an alternative to net income or the ratio of net income to net revenue as a measure of financial performance, SG&A, the ratio of SG&A to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, comparable store sales growth as a measure of operating performance, or any other performance measure derived in accordance with U.S. GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Please see 'Reconciliation of Non-GAAP to GAAP Financial Measures' below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures. National Vision Holdings, Inc. and Subsidiaries In Thousands, Except Par Value As of As of December 28, 2024 ASSETS Current assets: Cash and cash equivalents $ 80,024 $ 73,948 Accounts receivable, net 53,169 49,938 Inventories, net 88,571 93,918 Prepaid expenses and other current assets 32,360 32,024 Total current assets 254,124 249,828 Noncurrent assets: Property and equipment, net 357,738 362,175 Goodwill 698,305 698,305 Trademarks and trade names 240,547 240,547 Other intangible assets, net 8,087 8,269 Right of use assets 402,660 408,589 Other assets 48,891 40,058 Total noncurrent assets 1,756,228 1,757,943 Total assets $ 2,010,352 $ 2,007,771 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 36,661 $ 53,643 Other payables and accrued expenses 115,070 109,036 Unearned revenue 49,953 42,002 Deferred revenue 64,331 62,507 Current maturities of long-term debt and finance lease obligations 101,473 101,392 Current operating lease obligations 100,721 99,694 Total current liabilities 468,209 468,274 Noncurrent liabilities: Long-term debt and finance lease obligations, less current portion and debt discount 244,652 248,610 Noncurrent operating lease obligations 358,267 366,335 Deferred revenue 22,565 22,082 Other liabilities 8,373 8,228 Deferred income taxes, net 72,126 77,909 Total non-current liabilities 705,983 723,164 Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value; 200,000 shares authorized; 85,847 and 85,444 shares issued as of March 29, 2025 and December 28, 2024, respectively; 79,050 and 78,775 shares outstanding as of March 29, 2025 and December 28, 2024, respectively 858 854 Additional paid-in capital 814,309 807,048 Retained earnings 240,303 226,117 Treasury stock, at cost; 6,797 and 6,669 shares as of March 29, 2025 and December 28, 2024, respectively (219,310 ) (217,686 ) Total stockholders' equity 836,160 816,333 Total liabilities and stockholders' equity $ 2,010,352 $ 2,007,771 Expand National Vision Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended In thousands, except per share amounts March 29, 2025 March 30, 2024 Revenue: Net product sales $ 412,765 $ 388,083 Net sales of services and plans 97,559 94,711 Total net revenue 510,324 482,794 Costs applicable to revenue (exclusive of depreciation and amortization): Products 116,914 113,204 Services and plans 88,276 82,342 Total costs applicable to revenue 205,190 195,546 Operating expenses: Selling, general and administrative expenses 255,532 240,128 Depreciation and amortization 22,963 23,221 Asset impairment 502 456 Other expense (income), net — 1 Total operating expenses 278,997 263,806 Income from operations 26,137 23,442 Interest expense, net 4,572 4,256 Earnings from continuing operations before income taxes 21,565 19,186 Income tax provision 7,379 7,433 Income from continuing operations 14,186 11,753 Loss from discontinued operations, net of tax — (68 ) Net income $ 14,186 $ 11,685 Basic earnings (loss) per share: Continuing operations $ 0.18 $ 0.15 Discontinued operations $ — $ (0.00 ) Total $ 0.18 $ 0.15 Diluted earnings (loss) per share: Continuing operations $ 0.18 $ 0.15 Discontinued operations $ — $ (0.00 ) Total $ 0.18 $ 0.15 Weighted average shares outstanding: Basic 78,858 78,384 Diluted 79,259 78,826 Comprehensive income: Net income $ 14,186 $ 11,685 Unrealized gain on hedge instruments — 254 Tax provision of unrealized gain on hedge instruments — 64 Comprehensive income $ 14,186 $ 11,875 Expand National Vision Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended In Thousands March 29, 2025 March 30, 2024 Cash flows from operating activities: Net income $ 14,186 $ 11,685 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 22,963 24,181 Amortization of debt discount and deferred financing costs 367 629 Amortization of cloud computing implementation costs 2,157 1,132 Asset impairment 502 456 Deferred income tax expense (benefit) (5,783 ) (7,952 ) Stock-based compensation expense 7,029 2,465 (Gains) on change in fair value of derivatives — (190 ) Inventory adjustments 1,039 1,350 Other (26 ) (303 ) Changes in operating assets and liabilities: Accounts receivable (3,341 ) 12,287 Inventories 4,309 (6 ) Operating lease right of use assets and lease liabilities (666 ) (705 ) Other assets (10,922 ) 1,401 Accounts payable (16,982 ) (6,759 ) Deferred and unearned revenue 10,258 (988 ) Other liabilities 7,149 (14,696 ) Net cash provided by operating activities 32,239 23,987 Cash flows from investing activities: Purchase of property and equipment (20,225 ) (20,014 ) Other — 1,805 Net cash used for investing activities (20,225 ) (18,209 ) Cash flows from financing activities: Repayments on long-term debt (3,313 ) (1,875 ) Proceeds from issuance of common stock 265 320 Purchase of treasury stock (1,624 ) (2,721 ) Payments on finance lease obligations (732 ) (897 ) Net cash used for financing activities (5,404 ) (5,173 ) Net change in cash, cash equivalents and restricted cash 6,610 605 Cash, cash equivalents and restricted cash, beginning of year 75,237 151,027 Cash, cash equivalents and restricted cash, end of period (i) $ 81,847 $ 151,632 (i) Cash balance includes restricted cash of $1.8 million and $1.6 million for the three months ended March 29, 2025 and March 30, 2024, respectively, that are not reflected in cash and cash equivalents shown on the Condensed Consolidated Balance Sheets. Expand National Vision Holdings, Inc. and Subsidiaries Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited) Three Months Ended In thousands March 29, 2025 March 30, 2024 Net income $ 14,186 $ 11,685 Income (loss) from discontinued operations, net of tax — (68 ) Income from continuing operations 14,186 11,753 Interest expense, net 4,572 4,256 Income tax provision 7,379 7,433 Stock-based compensation expense (a) 7,029 2,414 Asset impairment (b) 502 456 Litigation settlement (c) — 4,450 Amortization of acquisition intangibles (d) 169 381 ERP and CRM implementation expenses (g) 2,315 516 Other (h) 5,123 2,235 Adjusted Operating Income from continuing operations $ 41,275 $ 33,894 2.8 % 2.4 % Adjusted Operating Margin from continuing operations 8.1 % 7.0 % Note: Percentages reflect line item as a percentage of total net revenue, adjusted for rounding. Expand Reconciliation of EBITDA from Continuing Operations and Adjusted EBITDA from Continuing Operations to Net Income (Loss) Three Months Ended In thousands March 29, 2025 March 30, 2024 Net income $ 14,186 $ 11,685 Income (loss) from discontinued operations, net of tax — (68 ) Income from continuing operations 14,186 11,753 Interest expense, net 4,572 4,256 Income tax provision 7,379 7,433 Depreciation and amortization 22,963 23,221 EBITDA from continuing operations 49,100 46,663 Stock-based compensation expense (a) 7,029 2,414 Asset impairment (b) 502 456 Litigation settlement (c) — 4,450 ERP and CRM implementation expenses (g) 2,315 516 Other (h) 5,123 2,235 Adjusted EBITDA from continuing operations $ 64,069 $ 56,734 Income from continuing operations margin 2.8 % 2.4 % Adjusted EBITDA Margin from continuing operations 12.6 % 11.8 % Note: Percentages reflect line item as a percentage of total net revenue, adjusted for rounding. Expand Reconciliation of Adjusted Diluted EPS from Continuing Operations to Diluted EPS Three Months Ended Shares in thousands, except per share amounts March 29, 2025 March 30, 2024 Diluted EPS $ 0.18 $ 0.15 Diluted EPS from discontinued operations — (0.00 ) Diluted EPS from continuing operations $ 0.18 $ 0.15 Stock-based compensation expense (a) 0.09 0.03 Asset impairment (b) 0.01 0.01 Litigation settlement (c) — 0.06 Amortization of acquisition intangibles (d) 0.00 0.00 Amortization of debt discount and deferred financing costs (e) 0.00 0.01 Derivatives fair value adjustments (f) — 0.03 ERP and CRM implementation expenses (g) 0.03 0.01 Other (h) 0.06 0.02 Tax effects (i) (0.03 ) (0.03 ) Adjusted Diluted EPS from continuing operations $ 0.34 $ 0.29 Weighted average diluted shares outstanding 79,259 78,826 Expand Reconciliation of Adjusted SG&A from Continuing Operations to SG&A from Continuing Operations Three Months Ended In thousands March 29, 2025 March 30, 2024 SG&A from continuing operations $ 255,532 $ 240,128 Stock-based compensation expense (a) 7,029 2,414 Litigation settlement (c) — 4,450 ERP and CRM implementation expenses (g) 2,315 516 Other (h) 5,123 2,235 Adjusted SG&A from continuing operations $ 241,065 $ 230,513 SG&A from continuing operations Percent of Net Revenue 50.1 % 49.7 % Adjusted SG&A from continuing operations Percent of Net Revenue 47.2 % 47.7 % Note: Percentages reflect line item as a percentage of total net revenue. Expand (a) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and performance vesting conditions. (b) Reflects write-off related to non-cash impairment charges of long-lived assets, primarily impairment of property, equipment and lease-related assets on closed or underperforming stores. (c) Expenses associated with settlement of certain litigation. (d) Amortization of the increase in carrying values of finite-lived intangible assets resulting from the application of purchase accounting following the acquisition of the Company by affiliates of KKR & Co. Inc. (e) Amortization of deferred financing costs and other non-cash charges related to our debt. We adjust for amortization of deferred financing costs related to the 2025 Notes only when adjustment for these costs is not required in the calculation of diluted earnings per share under U.S. GAAP. (f) The adjustments for the derivative fair value (gains) and losses have the effect of adjusting the (gain) or loss for changes in the fair value of derivative instruments and amortization of AOCL for derivatives not designated as accounting hedges. This results in reflecting derivative (gains) and losses within Adjusted Diluted EPS during the period the derivative is settled. (g) Costs related to the Company's ERP and CRM implementation. (h) Other adjustments include amounts that management believes are not representative of our operating performance (amounts in brackets represent reductions in Adjusted Operating Income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted SG&A), which are primarily related to shareholder activism costs of $2.1 million and severance and employee-related costs associated with organizational restructuring of $2.1 million for the three months ended March 29, 2025, costs associated with the digitization of paper-based records of $1.8 million for the three months ended March 30, 2024, and other expenses and adjustments. Adjusted Diluted EPS is also adjusted to include debt issuance costs. (i) Represents the income tax effect of the total adjustments at our combined statutory federal and state income tax rates, including tax expense (benefit) from stock-based compensation. Expand (a) Total comparable store sales from continuing operations is calculated based on consolidated net revenue from continuing operations excluding the impact of (i) other segments revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth is calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 16. 'Segment Reporting' in our Annual Report on Form 10-K for the period ended December 28, 2024. (b) Adjusted Comparable Store Sales Growth from continuing operations includes the effect of deferred and unearned revenue as if such revenues were earned at the point of sale, resulting in the changes from total comparable store sales growth from continuing operations based on consolidated net revenue from continuing operations; with respect to the Company's 2025 Outlook, Adjusted Comparable Store Sales Growth includes an estimated 0.5% decrease for the effect of deferred and unearned revenue as if such revenues were earned at the point of sale. Expand
Yahoo
08-04-2025
- Business
- Yahoo
Specialty Retail Stocks Q4 Earnings: National Vision (NASDAQ:EYE) Firing on All Cylinders
As the Q4 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the specialty retail industry, including National Vision (NASDAQ:EYE) and its peers. Some retailers try to sell everything under the sun, while others—appropriately called Specialty Retailers—focus on selling a narrow category and aiming to be exceptional at it. Whether it's eyeglasses, sporting goods, or beauty and cosmetics, these stores win with depth of product in their category as well as in-store expertise and guidance for shoppers who need it. E-commerce competition exists and waning retail foot traffic impacts these retailers, but the magnitude of the headwinds depends on what they sell and what extra value they provide in their stores. The 4 specialty retail stocks we track reported a mixed Q4. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.3% since the latest earnings results. Operating under multiple brands, National Vision (NYSE:EYE) sells optical products such as eyeglasses and provides optical services such as eye exams. National Vision reported revenues of $437.3 million, up 3.9% year on year. This print exceeded analysts' expectations by 0.6%. Overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts' expectations and an impressive beat of analysts' EBITDA estimates. 'Fiscal 2024 was an important year for National Vision as we took decisive steps to strengthen our foundation and accelerate our transformation,' said Reade Fahs, National Vision's CEO. National Vision scored the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $11.46. Is now the time to buy National Vision? Access our full analysis of the earnings results here, it's free. Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming. Petco reported revenues of $1.55 billion, down 7.3% year on year, in line with analysts' expectations. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EPS estimates. The market seems happy with the results as the stock is up 18.4% since reporting. It currently trades at $2.90. Is now the time to buy Petco? Access our full analysis of the earnings results here, it's free. Named after founder Philip Leslie, who established the company in 1963, Leslie's (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services. Leslie's reported revenues of $175.2 million, flat year on year, exceeding analysts' expectations by 0.8%. Still, it was a slower quarter as it posted a significant miss of analysts' EBITDA estimates. As expected, the stock is down 74.2% since the results and currently trades at $0.58. Read our full analysis of Leslie's results here. Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer. Tractor Supply reported revenues of $3.77 billion, up 3.1% year on year. This print was in line with analysts' expectations. Aside from that, it was a slower quarter as it produced full-year EPS guidance missing analysts' expectations and a miss of analysts' EBITDA estimates. Tractor Supply had the weakest performance against analyst estimates among its peers. The stock is down 13.3% since reporting and currently trades at $49.41. Read our full, actionable report on Tractor Supply here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
