National Vision (EYE) investor relations material

Consumer trends and business model evolution

• Consumer base now mirrors US household income distribution, not just lower income segments.

• Managed care customers are returning to historical purchase cycles, while cash pay remains below pre-COVID levels but is improving.

• Product assortment and pricing changes have led to consumers opting for higher-end products and accelerated purchase cycles.

• Value proposition is being redefined to better serve both managed care and cash pay consumers.

• Flat traffic overall, with growth in managed care and progressive segments, signals consumer stability.

Strategic initiatives and organizational changes

• Significant management changes include a new CFO, new brand leaders, and talent from major companies.

• Launched a new campaign and brand identity for America's Best, with positive early consumer response.

• Upgraded technology stack to Adobe CRM and e-commerce to drive customer loyalty.

• Store teams are being retrained to focus on lifestyle selling and maximizing insurance benefits for customers.

• Operational changes at Eyeglass World include shifting to an employee doctor model for better alignment.

Financial performance and outlook

• Strong Q2 growth driven by higher ticket size, with ongoing initiatives to evolve pricing and assortment.

• Operating and gross margins expanded due to pricing decisions and reduced non-accretive promotions.

• Strategic partnership with Accenture to identify SG&A and indirect spend savings, with all cost areas under review.

• Inventory managed efficiently through a showroom-based model, minimizing concerns about inventory growth.

• Margin outlook is positive, with cost actions expected to offset inflationary pressures.