National Vision Cuts Fiscal 2026 Sales Outlook After Margin Gain

The Tip Desk · November 12, 2026 · 3 min read

Adjusted operating income reached $37.1 million in the third quarter as the optical retailer lowered full-year adjusted comparable sales growth to 2.0%–3.0%.

National Vision Holdings, Inc. (EYE) reported adjusted operating income of $37.1 million for the third quarter ended October 3, 2026, up 87.4% from $19.8 million a year earlier, as adjusted operating margin expanded 320 basis points to 7.3% from 4.1%.

The optical retailer said the margin gain came with a slower sales trajectory than it had forecast three months earlier. It cut its fiscal 2026 outlook for the 52 weeks ending January 2, 2027, lowering adjusted comparable store sales growth to 2.0%–3.0% from 3.0%–5.0%, net revenue to $2.019 billion–$2.038 billion from $2.037 billion–$2.076 billion, adjusted operating income to $119 million–$131 million from $119 million–$139 million, and adjusted diluted EPS to $0.95–$1.03 from $0.94–$1.09. New-store openings were trimmed to about 30 from 30–35.

Net revenue rose 4.8% to $510.5 million, accelerating from 2.5% growth in the second quarter. Comparable store sales growth was 3.6% and adjusted comparable store sales growth was 2.8%, up from 3.4% and 2.2% in the prior quarter. The company said the lift came from higher average ticket, primarily a mix shift toward higher-value products, and strength in the managed care cohort, partially offset by lower self-pay customer traffic.

Chief Executive Alex Wilkes said comparable sales were bolstered by positive traffic and ticket in the managed care cohort and that growth in higher-value transactions offset industry headwinds concentrated in lower-value transactions, which he said represent a high single-digit share of sales and an even smaller share of gross profit.

Excluding a one-time $4.7 million IEEPA tariff refund, adjusted operating income was $32.4 million and adjusted operating margin was 6.4%, still 230 basis points above the year-ago 4.1%. Costs applicable to revenue increased 3.4% to $210.1 million and fell 60 basis points to 41.1% of net revenue, reflecting the tariff refund and leverage of optometrist-related costs on higher exam revenue, partially offset by a lower product margin rate from the mix shift. Excluding the refund, those costs as a percentage of revenue increased 40 basis points.

Selling, general and administrative expenses decreased 2.1% to $247.1 million and fell 340 basis points to 48.4% of net revenue, which the company attributed to improved store labor efficiency, lower variable incentive compensation and continued cost optimization. Adjusted SG&A decreased 0.5% to $241.2 million, or 47.2% of net revenue.

Net income was $19.2 million, or $0.24 a share, compared with $3.4 million, or $0.04 a share, a year earlier. Net income margin improved to 3.8% from 0.7%. Adjusted diluted EPS increased to $0.30 from $0.13. The net change in margin on unearned revenue reduced net income by $2.2 million and adjusted operating income by $2.9 million, and cut both diluted and adjusted diluted EPS by $0.03.

The company opened eight new America’s Best stores and closed three America’s Best stores and one Eyeglass World store, ending the quarter with 1,285 stores. Store count grew 3.5%.

Wilkes said the company is updating its outlook to reflect the current consumer environment and that, through continued execution, it expects to deliver full-year profitability in line with its long-term algorithm. He said new store growth is expected to accelerate in 2027, one year ahead of plan.

Cash was $60.0 million as of October 3, 2026, with no borrowings outstanding under the $300.0 million first-lien revolving credit facility, exclusive of $6.7 million of letters of credit. Total debt was $233.6 million. During the quarter the company repurchased about 1.1 million shares for $20.0 million. Effective November 9, 2026, the board authorized a new $100 million share-repurchase program through December 28, 2030, replacing a prior authorization that had $10.0 million remaining.