National Vision (EYE) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 increased 5.7% year-over-year to $510.3 million, driven by comparable store sales growth and new store openings.

• Adjusted operating income was $41.3 million, and adjusted diluted EPS was $0.34, both showing improvement over Q1 2024.

• Store count grew 3.0% year-over-year, ending the quarter with 1,237 stores after opening nine and closing twelve.

• Transformation initiatives and cost reduction actions contributed to the ninth consecutive quarter of positive comparable store sales growth.

• Leadership transition announced: Alex Wilkes to succeed Reade Fahs as CEO on August 1, with Fahs becoming Executive Chair.

Financial highlights

• Adjusted comparable store sales grew 5.5% year-over-year, with America's Best at 5.9% and Eyeglass World at 3.1%.

• Gross margin improved by 30 basis points to 40.2%; adjusted operating margin rose to 8.1% from 7.0%.

• Adjusted EBITDA from continuing operations was $64.1 million, up from $56.7 million; adjusted EBITDA margin improved to 12.6%.

• Net income from continuing operations was $14.2 million, up from $11.8 million in Q1 2024; diluted EPS from continuing operations was $0.18.

• Operating cash flow was $32.2 million; capital expenditures totaled $20.2 million, mainly for technology and store investments.

Outlook and guidance

• Fiscal 2025 outlook raised: net revenue expected at $1.919–$1.955 billion, adjusted operating income at $81–$92 million, and adjusted diluted EPS at $0.59–$0.67.

• Adjusted comparable store sales growth guidance increased to 1.5%–3.5% for 2025.

• 30–35 new stores planned for 2025; 53rd week projected to add ~$35 million to net revenue.

• Capital expenditures for 2025 expected to be $90–$95 million, focused on technology and store growth.

• Guidance assumes two-thirds of comparable sales growth from average ticket increases; tariff impacts ($10–$15 million incremental costs) not included in guidance.