National Vision’s second quarter results received a negative market reaction, despite the company surpassing Wall Street expectations for revenue and non-GAAP earnings. Management attributed these results to ongoing pricing actions, improvements in product assortment, and initiatives aimed at modernizing the customer experience. CEO Alex Wilkes highlighted the “significant transformation and accelerated growth” underway, emphasizing that refreshed branding and strategic investments in digital capabilities have started to show tangible benefits, particularly in managed care and product mix.
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National Vision (EYE) Q2 CY2025 Highlights:
- Revenue: $486.4 million vs analyst estimates of $469.8 million (7.7% year-on-year growth, 3.5% beat)
- Adjusted EPS: $0.18 vs analyst estimates of $0.14 (31.1% beat)
- Adjusted EBITDA: $46.17 million vs analyst estimates of $40.73 million (9.5% margin, 13.4% beat)
- The company slightly lifted its revenue guidance for the full year to $1.95 billion at the midpoint from $1.94 billion
- Management raised its full-year Adjusted EPS guidance to $0.66 at the midpoint, a 4.8% increase
- Operating Margin: 3.4%, up from 0.1% in the same quarter last year
- Locations: 1,240 at quarter end, up from 1,216 in the same quarter last year
- Same-Store Sales rose 5.9% year on year (2.4% in the same quarter last year)
- Market Capitalization: $1.82 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From National Vision’s Q2 Earnings Call
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Simeon Gutman (Morgan Stanley) asked about managed care penetration and plan growth. CEO Alex Wilkes reiterated targeting a 50% managed care mix but declined to provide specifics on new plan participation, emphasizing continued traction in the segment.
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Michael Lasser (UBS) questioned the drivers behind America’s Best comps and whether assortment changes impacted traffic. CFO Chris Laden explained that most gains were from price actions, but customers are also trading up into premium frames, with no evidence that assortment changes deterred cash pay customers.
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Paul Lejuez (Citi) inquired about average ticket differences and potential share loss in the cash pay segment. Wilkes clarified that managed care customers have higher ticket sizes and the company is focused on reactivating cash pay customers with marketing, while seeing no major regional performance differences.
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Adrienne Yih (Barclays) asked how the company targets higher-income customer cohorts and about doctor network capacity. Wilkes described the shift to digital and social marketing and outlined the CRM’s role in personalized outreach, while noting strong doctor recruitment and retention.
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Matthew Koranda (ROTH Capital) sought detail on the premiumization strategy and store productivity. Wilkes said there is further opportunity to expand premium assortments and that lens pricing is an area for future optimization, while Laden highlighted ongoing improvements from store closures and remote exam technology.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the impact of the new CRM and digital marketing initiatives on customer acquisition and retention, (2) further expansion and performance of managed care and premium product segments, and (3) the pace and effectiveness of store optimization efforts, including closures and new openings. Progress on cost control initiatives and the ability to drive margin expansion will also be key markers.
National Vision currently trades at $23.02, down from $24.83 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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