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Investing.com -- National Vision Holdings, Inc. (NASDAQ:EYE) on Wednesday reported second-quarter earnings that exceeded analyst expectations, as the eyewear retailer’s transformation initiatives drove comparable store sales growth and improved profitability.
The company posted adjusted earnings per share of $0.18 for the quarter ended June 28, surpassing the analyst estimate of $0.13.
Revenue climbed 7.7% to $486.4 million, beating the consensus estimate of $469.2 million. Comparable store sales increased 6.5%, marking the 10th consecutive quarter of positive growth.
National Vision’s strong performance was driven by a higher average ticket and continued strength in the managed care segment, despite a slight decrease in customer traffic.
The company’s strategic refinements to its product assortment and pricing architecture helped boost margins, with adjusted operating income surging 69.1% to $23.8 million.
"Our strong performance this quarter reflects the continued successful execution of our transformation program and the dedicated efforts of our entire National Vision team," said CEO Alex Wilkes.
"The implementation of our lifestyle selling approach, combined with strategic refinements to our assortment and pricing architecture, has supported solid positive comparable sales growth across our brands."
The company improved its gross margin by 170 basis points to 58.8%, primarily through successful execution of pricing and product mix initiatives and better leveraging of optometrist-related costs.
Following the strong results, National Vision raised its fiscal 2025 outlook. The company now expects adjusted comparable store sales growth of 3.0% to 5.0%, up from the previous forecast of 1.5% to 3.5%.
It also raised its revenue guidance to $1.93-1.97 billion from $1.92-1.96 billion, and adjusted EPS guidance to $0.62-$0.70 from $0.59-$0.67.
National Vision operated 1,240 stores at the end of the quarter, reflecting a 2.0% increase in store count YoY. The company plans to open approximately 32 new stores in fiscal 2025.
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