National Vision Holdings Reports Mixed Financial Results, Strategic Developments for Q3 2024

National Vision Holdings, Inc. reported its financial results for the three and nine months ended September 28, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 28, 2024, total net revenue increased to $451.5 million, up 2.9% from $438.8 million in the same period of 2023. Net product sales also rose by 2.4% to $363.2 million, primarily driven by a $8.4 million increase in eyeglass sales. The company experienced a comparable store sales growth of 1.4% during this period. However, total operating expenses rose to $270.4 million, leading to a loss from operations of $8.8 million, a decline from an income of $3.5 million in the prior year. Net income for the quarter was a loss of $8.5 million, an improvement from a loss of $73.8 million in the same quarter of the previous year.

For the nine months ended September 28, 2024, total net revenue reached $1.386 billion, a 3.8% increase from $1.335 billion in the prior year. Net product sales for this period also increased by 2.4% to $1.113 billion. The company reported a net income of $92,000, a significant recovery from a loss of $49.9 million in the same nine-month period of 2023.

The company’s strategic initiatives included the closure of 39 stores and the conversion of four Eyeglass World stores to America’s Best stores, as part of a broader store fleet review. This review also resulted in non-cash impairment charges of $13.7 million for the quarter, compared to $1.5 million in the prior year. Additionally, National Vision is undergoing a transformation with new executive leadership aimed at enhancing profitability and performance.

The company’s cash flow from operating activities for the nine months ended September 28, 2024, was $103.4 million, down from $153.3 million in the previous year, primarily due to changes in working capital and non-cash items. The termination of the Walmart Management & Services Agreement and the wind-down of AC Lens operations also impacted financial results.

As of September 28, 2024, National Vision operated 1,231 retail optical locations, an increase from 1,188 locations at the end of 2023. The company continues to focus on its low price/high value strategy while navigating challenges such as inflation and labor costs. The effective tax rate for the three months ended September 28, 2024, was 30.1%, compared to a negative rate of (109.1)% in the prior year, reflecting changes in statutory rates and non-deductible expenses.