National Vision Q1 Earnings Call Highlights

Key Points

• National Vision’s Q1 2026 results improved as net revenue rose 6.6% to $544 million, adjusted comparable store sales increased 4.5%, and adjusted operating margin expanded to 10.2% from 8.0% a year earlier. Adjusted EPS also climbed to $0.45 from $0.34.
• Growth was driven by higher average ticket and a mix shift toward managed care, progressive lenses and premium products, while traffic remained slightly down. Management highlighted strong demand for smart glasses like Ray-Ban Meta and new premium offerings, which helped lift ticket size and margins.
• The company reaffirmed its fiscal 2026 outlook despite a temporary traffic hit from the americasbest.com replatforming in early Q2 and ongoing softness in cash-pay customers. Guidance calls for $2.03 billion to $2.09 billion in revenue and 3% to 6% comparable-store sales growth, with management still confident in its full-year plan.

National Vision NASDAQ: EYE executives said the optical retailer’s first-quarter 2026 results showed progress in its transformation plan, with higher revenue, stronger average ticket and expanded adjusted operating margin, even as management acknowledged pressure from weather, macroeconomic volatility and a website replatforming early in the second quarter.

CEO Alex Wilkes told investors the company is “building a stronger, more profitable National Vision” and said first-quarter performance provided “clear evidence” that its strategy is working. The company is focusing on four growth areas: attracting more profitable customer cohorts, improving key product categories, enhancing the customer and patient experience, expanding through stores and channels, and driving margin improvement through cost discipline.

Revenue rises as ticket growth offsets traffic pressure

For the first quarter, National Vision reported net revenue of $544 million, up 6.6% from the prior-year period. Adjusted comparable store sales increased 4.5%, which management said was in line with its mid-single-digit algorithm. CFO Chris Laden said revenue benefited from adjusted comparable store sales growth and a positive 2% impact from the timing of unearned revenue.

Adjusted operating income rose to $55.5 million from $41.3 million a year earlier, while adjusted operating margin expanded 210 basis points to 10.2%. Adjusted earnings per share increased to $0.45 from $0.34 in the prior-year quarter.

Laden said comparable sales growth was driven by a 5.1% increase in average ticket, supported by strength in managed care and the company’s pricing, merchandising and product mix initiatives. That was partly offset by a 1.2% decline in overall customer traffic. He said positive traffic from the combined managed care, progressive and outside prescription customer cohort helped offset softer traffic in the cash-pay business.

Wilkes said the company’s intentional mix shift toward progressives, managed care and outside prescription customers continued in the quarter. He added that ticket growth was not simply a function of price, but reflected higher penetration of products customers value, upgraded selling tools and improved associate training.

Premium products and smart glasses support mix shift

National Vision continued to expand its assortment during the quarter. Wilkes said the company introduced new private-label frame options, added select price points above $100, launched Stetson frames, rolled out Swarovski across emerging brands and launched Kendra Scott sunglasses in April.

Customers also continued to adopt advanced lens materials and features at a higher rate than last year, including polycarbonate, high-index lenses, anti-reflective coatings, Transitions and premium progressive options, according to Wilkes.

Smart glasses were another area of emphasis. Wilkes said Ray-Ban Meta products have seen strong early demand, with customers using managed care benefits to support purchases. National Vision expanded Ray-Ban Meta and Oakley Meta to all America’s Best and Eyeglass World stores, as well as online, in early April. Wilkes said the average transaction value for a Ray-Ban Meta customer is among the highest in the company’s portfolio, though he noted the product is more accretive to gross margin dollars than to gross margin rate.

The company is also piloting Nikon Lenswear in more than 100 locations, with plans for a broader June rollout. Wilkes said the lenses will be available for single-vision and progressive customers at America’s Best and Eyeglass World. He described the Nikon progressive lens as a top-tier design that offers sharper vision, a wider field of vision and better adaptation for wearers.

Website replatforming weighs on second-quarter traffic

Management said the company replatformed americasbest.com at the start of the second quarter, a move Wilkes characterized as a key step in National Vision’s unified commerce strategy. The transition disrupted traffic as search and social optimization reset, though Wilkes said the issue was not related to technical problems with the site.

Wilkes said the website is responsible for about half of America’s Best eye exam bookings, and the disruption primarily affected exam-related traffic. He said National Vision is reestablishing the “pipes” between the new platform and lower-funnel marketing channels, including search and social providers.

Quarter-to-date comparable sales were tracking in the low-single-digit range at the time of the call. Laden said National Vision views the impact as temporary and is seeing sequential traffic improvement as the quarter progresses. Management said the disruption does not alter its full-year outlook.

Guidance reaffirmed for fiscal 2026

National Vision reaffirmed its fiscal 2026 guidance. The company continues to expect:

• Net revenue of $2.03 billion to $2.09 billion.
• Adjusted comparable store sales growth of 3% to 6%.
• Adjusted operating income of $107 million to $133 million.
• Adjusted diluted earnings per share of $0.85 to $1.09.
• Capital expenditures of $73 million to $78 million.
• Approximately 30 to 35 new store openings and 10 to 15 store closures, excluding the military expansion completed late in the first quarter.

Laden said the midpoint of the outlook assumes adjusted operating margin expansion of about 100 basis points relative to fiscal 2025, excluding the prior year’s 53rd week. He said the expansion is expected to come primarily from SG&A leverage, supported in part by a multi-year cost savings plan that remains on track to deliver about $10 million in annualized savings this year.

The company ended the quarter with 1,274 stores. During the period, it opened eight new America’s Best stores, closed three America’s Best stores and one military store, and added 20 new military optical sites through an expanded relationship with the Army and Air Force Exchange Service. Wilkes said National Vision is now the sole optical provider in the U.S. for Army and Air Force bases. Laden said the new military stores are not included in current guidance and are not expected to materially affect the 2026 outlook.

Cash-pay softness remains a focus

During the question-and-answer session, analysts asked about traffic trends among cash-pay customers and the impact of macroeconomic factors. Wilkes said cash-pay traffic remained suppressed, consistent with recent quarters, but that cash-pay customers who do shop are adopting premium frames and lenses at a strong rate. He said the cohort is still comping positive because of higher average ticket.

Laden said National Vision no longer attributes a disproportionate first-quarter demand benefit to tax refunds, particularly as the company shifts more toward managed care customers. He also noted that gas price increases may have affected consumers’ willingness to spend during March.

Wilkes said National Vision is not seeing evidence that the company is losing share among cash-pay consumers. He said the company’s internal data suggests the softness is broad across income cohorts and age demographics, reflecting lower repurchase velocity rather than a shift to competitors.

Despite the choppier consumer environment and second-quarter digital disruption, Wilkes said management remains confident in its full-year plan. “We are absolutely sticking to our guidance for the year,” he said, citing planned initiatives including store segmentation, premium lens launches, continued momentum in smart glasses and future benefits from the new e-commerce and CRM platforms.

About National Vision NASDAQ: EYE

National Vision Holdings, Inc is an American optical retailer specializing in accessible vision care and eyewear. The company operates under multiple retail banners, offering comprehensive eye health services and a wide range of optical products. Since its founding in the early 1990s, National Vision has focused on providing value-driven solutions, targeting underserved and price‐conscious consumer segments.

Through its primary retail brands—including America's Best Contacts & Eyeglasses, Eyeglass World, Optical America and Vista Optical—National Vision delivers services such as comprehensive eye examinations, prescription eyewear, contact lenses, sunglasses and lens accessories.

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