National Vision (EYE) Morgan Stanley Global Consumer & Retail Conference 2025 summary

Business transformation and strategic direction

• Leadership identified that the customer base is wealthier and more middle-income than previously thought, prompting changes in assortment, pricing, and brand messaging, with initial changes going live in summer 2025.

• Early mechanical changes focused on price, assortment, and brand strategy, with future phases targeting further assortment refinement, more premium lenses, and improved consumer messaging.

• The company is shifting from a one-size-fits-all approach to a segmented strategy, aiming to maximize profitability by targeting more valuable customer cohorts, such as managed care and progressive lens wearers.

• Store growth will be deliberately slowed in 2026 and 2027 to focus on reinvestment in product, customer segments, and unified experience, with plans to re-accelerate in 2028.

• A new store design is being developed to optimize real estate and customer experience, targeting smaller footprints than historically used.

Cost optimization and margin expansion

• $12 million in costs were removed in 2025, with an additional $20 million targeted for 2026-2027, through rigorous procurement and budgeting processes.

• Leadership expects to expand operating margins by 50-150 basis points annually over the next five years, aiming to return to or exceed IPO-era margins.

• SG&A leverage is a key focus, with investments in technology and infrastructure balanced against disciplined cost management.

• Every line item of spend is being justified against top initiatives, leading to both cost reductions and targeted reinvestments.

• Margin expansion confidence is based on structural cost changes, better customer targeting, and modernized product assortment.

Growth vectors and market opportunity

• Four growth vectors: underdeveloped customer segments, underdeveloped product segments, enhanced in-store and omnichannel experience, and physical store expansion.

• Significant opportunity exists to capture the "outsider X" customer, managed care segment (targeting 50% mix), and progressive lens wearers.

• Premium lens and coating penetration is well below industry averages; a 1% increase in each could add $40 million in annual revenue.

• The company holds about 3% share in a $70 billion U.S. optical market, with over 50% still controlled by independents, presenting consolidation and share gain opportunities.

• Initiatives across all growth vectors are underway, with interplay between them expected to drive both revenue and profitability.