National Vision Holdings, Inc. · NASDAQ:EYE
National Vision — Q4 2024 Earnings Presentation
33 slides from National Vision's earnings presentation, Feb 26, 2025
Slide 1: Fourth Quarter 2024 Financial Results
FOURTH QUARTER 2024 FINANCIAL RESULTS FEBR UARY 26, 2025 NASDAQ: EYE 1
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements This presentation 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, sta
Slide 3: We help people see their best to live their best
WE HELP PEOPLE SEE THEIR BEST TO LIVE THEIR BEST. NATIONAL VISION'S BUSINESS HAS BEEN DRIVEN BY THIS BELIEF FOR OVER 30 YEARS. 3
Slide 4: Q4 2024 Highlights (Continuing Operations)
Q4 2024 Highlights (Continuing Operations) $437.3M +3.9% 1.5% Net Revenue Adj. Comp. Store Net Revenues Sales Growth1 Growth $3.2M $(0.04) Adj. Operating Adj. Diluted EPS1 Income1 1- Non-GAAP financial measure; see Appendix for reconciliation to GAAP financial measures 4 4
Slide 5: FY 2024 Highlights (Continuing Operations)
FY 2024 Highlights (Continuing Operations) $1.82B +3.8% 1.3% Net Revenue Adj. Comp. Store Net Revenues Sales Growth1 Growth $65.5M $0.52 1.8x Adj. Operating Net Debt/ Adj. Diluted EPS1 Income1 Adj. EBITDA1 1- Non-GAAP financial measure; see Appendix for reconciliation to GAAP financial measures 5 5
Slide 6: FY 2024 Accomplishments
FY 2024 Accomplishments Enhanced Leadership Team with Launched new selling methods and exciting new Seasoned Industry Executives product launches Re-evaluated pricing architecture Expanded Exam Capacity Retention rate in-line with historical average Recruited ~10% of graduating class Ended 2024 with
Slide 7: Financial Results
Financial Results 7
Slide 8: Q4 2024 Revenue Drivers (Continuing Operations)
Q4 2024 Revenue Drivers (Continuing Operations) NET REVENUE ($M) Net Revenue • Increased 3.9% primarily driven by growth from new store sales and Adjusted Comparable Store Sales Growth and $437 the effect of unearned revenue, partially offset by converted $421 and closed stores and lower e-commerce
Slide 9: Q4 2024 Results (Continuing Operations)
Q4 2024 Results (Continuing Operations) ADJUSTED OPERATING INCOME ($M)1 Costs applicable to revenue as percentage of net revenue decreased 150 bps to 42.3% vs. Q4 2023: • Gross margin increase of ~150 bps driven primarily by $3.2 decreased optometrist-related costs, higher eyeglass margin and mix, p
Slide 10: FY 2024 Results (Continuing Operations)
FY 2024 Results (Continuing Operations) NET REVENUE ($M) Net Revenue $1,756 $1,823 • Increased 3.8% compared with the same period of 2023 • Driven by new stores and 1.3% in Adjusted Comparable Store Sales Growth1 and the effect of unearned revenue, partially offset by converted and closed stores and
Slide 11: 2024 Capital Structure (Continuing Operations)
2024 Capital Structure (Continuing Operations) Capital Expenditures $96 million deployed, primarily focused on new store openings and investments in existing stores and technology Net Debt Reduced net debt by over $100 million In August 2024, repurchased ~$218 million aggregate principal amount of 2
Slide 12: Strategic Initiatives
Strategic Initiatives 12
Slide 13: Stabilize, Strengthen & Grow
Stabilize, Strengthen & Grow National Vision Continues to Transform for Long-Term Success Phase One Phase Two Evolve & Strengthen Foundation Evolve Value Offering Improve Exam Capacity Expand Target Demographic w/ Recruiting, Retention & Remote Expansion Implement New Pricing Architecture Enhance Sy
Slide 14: Phase Two: Evolve Value Offering
Phase Two: Evolve Value Offering Focus on Demand Generation and Cost Efficiency Expand Target Implement New Enhance Customer Optimize Cost Demographic Pricing & Patient Structure Architecture Experience Modernize marketing and Better align pricing Utilize digital tools and Make significant changes t
Slide 15: Outlook
Outlook 15
Slide 16: Multiple Drivers of Profitable Sales Growth
Multiple Drivers of Profitable Sales Growth Initiatives In Place To Drive Ticket & Traffic 2025 Net Revenue Outlook ($M) $1,901 - $1,955 Enhanced Customer Pricing Experience $1,823 Initiatives New Store Openings 53rd Week (~$35M) Store Closures 2024 Net Revenue 2025 Net Revenue Outlook 16
Slide 17: Adj. Operating Margin Expansion Drivers
Adj. Operating Margin1 Expansion Drivers Sales Growth and Cost Optimization to Offset Investments and Inflation 2025 Adj. Operating Margin1 Outlook 3.9% - 4.5% 3.6% Enhanced Cost Customer Pricing Efficiencies Experience Store 53rd Week Optimization Initiatives (~$2M) Growth Product Cost Investments
Slide 18: 2025 Capital Allocation Priorities
2025 Capital Allocation Priorities Invest in Growth Expecting capital expenditures of $90 - $95 million for investments in new store openings and technology Debt Structure Plan to take fiscally responsible actions with the outstanding convertible notes balance with May 2025 maturity Healthy balance
Slide 19: Fiscal 2025 Outlook
Fiscal 2025 Outlook The Company is providing the following outlook for the 53 weeks ending January 3, 2026. The Company estimates the 53rd week of fiscal 2025 will contribute approximately $35 million to net revenue, and approximately $3 million to adjusted operating income. Continuing Operations Fi
Slide 20: Appendix
Appendix 20
Slide 21: Quarterly Financial Historical Overview (Continuing Operations)
Quarterly Financial Historical Overview (Continuing Operations)(Unaudited) NET REVENUE ($M) ADJUSTED COMPARABLE STORE SALES GROWTH (%)1 6.3% $482.8 $464.8 4.7% $451.7 $451.5 $438.8 $437.3 $431.8 $421.0 2.4% 1.3% 1.5% 1.1% 0.9% 0.4% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q2
Slide 22: Historical Adjusted Comparable Store Sales Growth & Drivers
Historical Adjusted Comparable Store Sales Growth & Drivers (Unaudited) ADJUSTED COMPARABLE STORE SALES GROWTH Y/Y (%)1 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 6.3% 4.7% 2.4% 1.3% 1.1% 0.9% 1.5% 0.4% -2.0% -7.1% -7.8% -12.4% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24
Slide 23: Capital Structure and Cash Flow
Capital Structure and Cash Flow Q4 2024 Capital Structure ($M) Debt Less: Deferred Amounts per % of Amount Financing Costs Balance Sheet Total Coupon Maturity First Lien - Term A Loans $ 254.2 $ (1.6) $ 252.6 72 % Term SOFR + 1.75% 6/13/2028 First Lien - Revolving Credit Facility1 — — — — % Term SOF
Slide 24: Q4 and FY 2024 Consolidated Financial Results
Q4 and FY 2024 Consolidated Financial Results Three Months Ended Three Months Ended December 28, 2024 December 30, 2023 Fiscal Year 2024 Fiscal Year 2023 Dollars and shares in thousands, except Earnings (loss) Per Share (Unaudited) (Unaudited) Revenue: Net product sales $ 349,933 $ 336,330 $ 1,463,1
Slide 25: Reconciliation of Adjusted Operating Income to Net Income
Reconciliation of Adjusted Operating Income (Loss) from Continuing Operations to Net Income (Loss) (Unaudited) Three Months Ended Fiscal Year April 1, July 1, September December March 30, June 29, September December In thousands 2023 2023 30, 2023 30, 2023 2024 2024 28, 2024 28, 2024 2023 2024 Total
Slide 26: Reconciliation of Adjusted Diluted EPS to Diluted EPS
Reconciliation of Adjusted Diluted EPS to Diluted EPS (Unaudited) Three Months Ended Fiscal Year April 1, July 1, September December March 30, June 29, September December Shares in thousands, except per share amounts 2023 2023 30, 2023 30, 2023 2024 2024 28, 2024 28, 2024 2023 2024 Diluted EPS $ 0.2
Slide 27: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (loss) (Unaudited) Dollars in thousands Fiscal Year 2024 Total net revenue $ 1,823,320 Net income (loss) $ (28,499) Income (loss) from discontinued operations, net of tax (1,334) Income (loss) from continuing operations, net
Slide 28: Reconciliation of Adjusted SG&A to SG&A
Reconciliation of Adjusted SG&A from Continuing Operations to SG&A from Continuing Operations (Unaudited) Three Months Three Months Ended December Ended December Fiscal Year Fiscal Year In thousands 28, 2024 30, 2023 2024 2023 SG&A from continuing operations $ 233,052 $ 225,642 $ 938,524 $ 904,757 S
Slide 29: Reconciliation of Non-GAAP to GAAP Measures Footnotes
Reconciliation of Non-GAAP to GAAP Financial Measures Footnotes 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 the extinguishment (gain) loss related to the repurchas
Slide 30: Reconciliation of Adjusted Comparable Stores Sales Growth
Reconciliation of Adjusted Comparable Stores Sales Growth (Unaudited) Comparable store sales growth from continuing operations (a) Three Months Three Months Ended Ended December December 28, 2024 30, 2023 Fiscal Year 2024 Fiscal Year 2023 2025 Outlook (b) Owned & Host segment America’s Best 2.0 % 7.
Slide 31: Adjusted Comparable Store Sales Growth Primer
Adjusted Comparable Store Sales Growth Primer What is Adjusted Comparable Store Sales Growth? • Calculated using net revenue on a cash-basis • Excludes the impact of unearned and deferred revenue Why use Adjusted Comparable Store Sales Growth? • Provides a clear view of the Company’s current operati
Slide 32: Unearned Revenue Primer
Unearned Revenue Primer 32 32
Slide 33: Check out some of our latest commercials
Check out some of our latest commercials: National Vision Commercials Check out our video demonstrating a remote exam: Remote Care with National Vision 33
National Vision Holdings — Q4 2024 Earnings Presentation on 6ix