Companies

National Vision Raises Full-Year Adjusted Operating Income Outlook

The Tip Desk · August 12, 2026 · 4 min read

Adjusted operating income reached $31.6 million in the second quarter as the optical retailer lifted its fiscal 2026 range to $119 million to $139 million.

National Vision Holdings, Inc. (EYE) raised its fiscal 2026 adjusted operating income outlook to $119 million to $139 million from $107 million to $133 million after a second quarter in which that measure reached $31.6 million, up 32.7% from a year earlier.

The optical retailer also lifted adjusted diluted earnings guidance to $0.94 to $1.09 a share from $0.85 to $1.09, and tightened its adjusted comparable store sales growth outlook to 3.0% to 5.0% from 3.0% to 6.0%. Net revenue guidance was narrowed to $2.037 billion to $2.076 billion. Interest guidance was lowered to $11 million to $13 million.

Net revenue for the quarter ended July 4, 2026, was $498.8 million, up 2.5% from a year earlier, a slower pace than the 6.6% increase in the first quarter. The rise was driven by new store sales, a 0.8% positive impact from the timing of unearned revenue and adjusted comparable store sales growth, partially offset by closed stores.

Comparable store sales growth was 3.4% and adjusted comparable store sales growth was 2.2%, down from 4.4% and 4.5% in the prior quarter. The comparable-store result reflected higher average ticket and continued strength in the managed care cohort, partially offset by lower self-pay customer traffic.

Adjusted operating margin expanded 140 basis points to 6.3% from 4.9%. The prior quarter had seen a 34.4% increase in adjusted operating income and a 210-basis-point margin expansion. The net change in margin on unearned revenue benefited adjusted operating income by $2.9 million and net income by $2.2 million.

Costs applicable to revenue rose 4.0% to $208.4 million and 60 basis points to 41.8% of net revenue, reflecting a strategic mix shift toward higher-value product offerings. Selling, general and administrative expenses decreased 1.5% to $243.4 million and 200 basis points to 48.8% of net revenue, reversing a 0.2% increase in the prior quarter. The SG&A decline was primarily driven by lower associate-related expenses, including variable incentive compensation, and lower advertising expense, partially offset by higher occupancy expense. Adjusted SG&A fell 1.6% to $236.2 million, or 47.3% of net revenue.

Net income was $12.4 million, compared with $8.7 million a year earlier, and net income margin improved to 2.5% from 1.8%. Diluted earnings were $0.15 a share versus $0.11. Adjusted diluted earnings were $0.25 a share versus $0.18. The unearned-revenue margin change added $0.03 to both diluted and adjusted diluted EPS.

The company opened nine America’s Best stores and closed two, ending the quarter with 1,281 stores. Store count grew 3.3%. In the prior quarter it had added 20 Military stores.

Chief executive Alex Wilkes said the quarter was an important step forward, with higher-value transactions, managed care customers and ticket growth gaining momentum. He said the company remained disciplined in how it pursues growth, focusing on a shift toward a healthier customer base, improving product mix, enhancing the customer experience and maintaining cost discipline. Those actions were more than offsetting deferred purchases among the least profitable, lower-value transactions. Completing the website replatform, he said, moved the company to a unified commerce foundation.

Wilkes said confidence in the earnings power of the business continues to build, supported by new brand introductions, store segmentation and increased back-half marketing investment. The company is raising adjusted operating income guidance as it continues to drive profitable growth.

Cash was $36.0 million as of July 4, 2026. Total debt was $237.7 million. The company had no borrowings outstanding under its $300.0 million first lien revolving credit facility, exclusive of letters of credit of $6.7 million. During the three months ended July 4, 2026, it repurchased about 1.2 million shares for $20.0 million, leaving $30.0 million of remaining authorization.

For the 52 weeks ending January 2, 2027, the company still expects 30 to 35 new stores, primarily America’s Best, excluding the 20 Military store additions in April 2026. Depreciation and amortization guidance is $92 million to $93 million, and capital expenditures are $72 million to $76 million. The tax rate is assumed at about 30%. Adjusted diluted EPS assumes approximately 81 million shares.