National Vision Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the third quarter ended October 3, 2026, increased 4.8% year-over-year to $510.5 million.
• Net income for the quarter increased to $19.2 million from $3.4 million in the prior-year period; net income margin improved to 3.8% from 0.7%.
• Diluted EPS increased to $0.24 from $0.04; Adjusted Diluted EPS increased to $0.30 from $0.13.
• Adjusted Operating Income increased 87.4% to $37.1 million from $19.8 million; Adjusted Operating Margin expanded 320 basis points to 7.3% from 4.1%.
• Excluding a one-time benefit of $4.7 million from IEEPA tariff refunds, Adjusted Operating Income was $32.4 million with an Adjusted Operating Margin of 6.4% (up 230 basis points).
• Costs applicable to revenue increased 3.4% to $210.1 million; as a percentage of net revenue, this decreased 60 basis points to 41.1%.
• Selling, general and administrative (SG&A) expenses decreased 2.1% to $247.1 million; Adjusted SG&A decreased 0.5% to $241.2 million.
• Year-to-date 2026 net revenue increased 4.7% to $1,553.2 million.
• Year-to-date 2026 net income increased to $62.8 million from $26.3 million; net income margin increased to 4.0% from 1.8%.
• Year-to-date 2026 Adjusted Operating Income increased 46.3% to $124.2 million; Adjusted Operating Margin expanded 230 basis points to 8.0% from 5.7%.
• Cash balance was $60.0 million as of October 3, 2026.
• Total debt was $233.6 million as of October 3, 2026.
• The Company repurchased approximately 1.1 million shares for $20.0 million during the quarter.

Guidance and Future Outlook:

• Fiscal 2026 outlook (52 weeks ending January 2, 2027) updated to reflect the current consumer environment.
• New store guidance reduced from 30-35 to approximately 30.
• Adjusted Comparable Store Sales Growth guidance reduced from 3.0%-5.0% to 2.0%-3.0%.
• Net Revenue guidance reduced from $2.037 billion-$2.076 billion to $2.019 billion-$2.038 billion.
• Adjusted Operating Income guidance reduced from $119 million-$139 million to $119 million-$131 million.
• Adjusted Diluted EPS guidance adjusted to $0.95-$1.03 from $0.94-$1.09.
• Capital Expenditures guidance reduced from $72 million-$76 million to $72 million-$74 million.
• Depreciation and Amortization, Interest, and Tax Rate guidance remain unchanged at $92 million-$93 million, $11 million-$13 million, and ~30%, respectively.
• Management expects to accelerate new store openings in 2027, one year ahead of plan.
• Management expects to deliver full-year profitability in line with long-term targets through disciplined execution.

Business Segments and Product Lines:

• Comparable store sales growth was 3.6% (Adjusted Comparable Store Sales Growth of 2.8%), driven by higher average ticket and strength in the managed care cohort.
• Higher-value transactions offset industry headwinds concentrated in lower-value transactions, which represent a high single-digit share of sales.
• The Company opened eight new America's Best stores and closed three America's Best stores and one Eyeglass World store during the quarter.
• Total store count ended the quarter at 1,285, representing a 3.5% overall growth.
• Year-to-date, the Company opened 25 new America's Best stores and closed eight America's Best stores, one Military store, and one Eyeglass World store.
• The Company expanded its military channel presence by adding 20 new Military stores year-to-date.
• Strategic mix shift toward higher-value product offerings resulted in lower product margin rates but higher gross profit dollars.
• Costs applicable to revenue as a percentage of net revenue increased 40 basis points excluding the one-time tariff refund benefit, reflecting the higher-value product mix.

Market and Competitive Landscape:

• Industry headwinds are concentrated in lower-value transactions, while growth is driven by positive traffic and ticket in the managed care cohort.
• Lower-value transactions represent a high single-digit share of sales and an even smaller share of gross profit.
• The Company operates four retail brands: America's Best Contacts & Eyeglasses, Eyeglass World, Vista Opticals (inside Fred Meyer and on military bases), and DiscountContacts.com.
• The Company is one of the largest optical retail companies in the United States with over 1,200 stores in 40 states and Puerto Rico.

Risks and Challenges:

• Forward-looking statements are subject to uncertainties including dynamic market conditions, regulatory actions impacting international trade (tariffs), and geopolitical issues.
• Risks include rising fuel or energy costs, wage rate increases, inflation, and cost increases.
• Challenges include the ability to recruit and retain vision care professionals and successfully implement strategic initiatives.
• Potential risks involve the performance of Host brands, inventory shrinkage, and disruptions to distribution centers or optical laboratories.
• Dependence on third-party coverage and reimbursement, including government programs, remains a risk.
• Risks associated with indebtedness, interest rate changes, and restrictions in the credit agreement are noted.

Management Commentary and Tone:

• CEO Alex Wilkes stated that the strategy continues to deliver profitable growth through the commercial transformation of the business.
• Management highlighted that strong earnings power and cash flow generation provide flexibility to accelerate store openings and invest in long-term capabilities.
• Wilkes noted that actions taken are building a stronger, more durable business, positioning National Vision to gain share and deliver durable profitable growth.
• Management emphasized that growth in higher-value transactions is offsetting headwinds in lower-value transactions, a distinction critical to earnings strength.

Other Key Points:

• Effective November 9, 2026, the Board authorized a new share repurchase program for up to $100 million of common stock, valid until December 28, 2030.
• The new authorization replaces the previous authorization which had $10.0 million remaining capacity at the time of replacement.
• The Company has no borrowings outstanding under its $300.0 million first lien revolving credit facility, exclusive of $6.7 million in letters of credit.
• A conference call to discuss results and guidance was scheduled for November 12, 2026, at 8:30 a.m. Eastern Time.
• The Company reported a one-time benefit of $4.7 million from IEEPA tariff refunds in the third quarter.
• The net change in margin on unearned revenue negatively impacted Q3 Diluted EPS and Adjusted Diluted EPS by $0.03 each.