CFO to Depart Following Transition Period
Elevates and Expands Roles of Three Key
Executives to Support Transformation Efforts
Announces Select Preliminary Fourth Quarter and
Fiscal 2024 Financial Results
National Vision Holdings, Inc. (NASDAQ: EYE) (“National Vision”
or the “Company”) today announced updates to its leadership
structure that include expanded responsibilities for three
executive team members and that Melissa Rasmussen, Chief Financial
Officer, will depart following a transition period.
The Company announced that the Chief Financial Officer, Melissa
Rasmussen, will be departing the Company to pursue an opportunity
in another industry. Ms. Rasmussen intends to continue in her role
through the release of the Company’s fourth quarter and full fiscal
year 2024 financial results which is expected to occur on February
26, 2025. The Company has commenced a search to identify her
successor and, if necessary, intends to appoint an interim Chief
Financial Officer prior to Ms. Rasmussen’s departure.
"On behalf of our entire organization, I want to thank Melissa
for her dedication and valuable contributions during her tenure at
National Vision. Melissa played an instrumental role in helping us
navigate through a rapidly evolving business landscape over the
past few years, and more recently, as we have embarked on our
transformation to position National Vision for its next chapter for
growth. We wish her the very best in her future endeavors," said
Reade Fahs, National Vision’s CEO.
"I am incredibly grateful for my time at National Vision and
proud of the talented and experienced finance and accounting teams
I have had the privilege to lead. The company is well-positioned to
continue to execute on its strategic initiatives, and I look
forward to ensuring a smooth transition for my successor," said Ms.
Rasmussen.
In addition, to support the Company’s transformation, enhance
the overall patient and customer experience and promote growth in
strategic areas, the following changes have been made to the
executive leadership team:
- Megan Molony, Chief Merchandising and Managed Care
Officer, is assuming leadership of Manufacturing and Distribution.
With this change, the Company is uniting all Managed Vision Care
functions, including strategy and revenue cycle management, under
one umbrella.
- Mark Banner has been named President of America’s Best.
In this new position, Mr. Banner’s significant retail leadership
and customer experience expertise will play a critical role in
leading the transformation of the brand’s in-store experience. In
this role, Mr. Banner will also oversee Store Design and Clinical
Services.
- Dr. Priti Patel has been named General Manager of
Eyeglass World, Fred Meyer and Military. Ms. Patel brings a breadth
of optical experience to the role, providing these brands with a
fresh leadership perspective. In this capacity, Ms. Patel will be
primarily focused on strengthening the Eyeglass World brand.
In addition, the following leader’s roles have been expanded to
align with the Company’s strategic initiatives: Joe VanDette has
been named Chief Brand & Marketing Officer, Jared Brandman has
been named Chief Legal & Strategy Officer, and Bill Clark,
Chief People Officer will now assume expanded responsibilities in
the areas of Transformation, Enterprise PMO, and Change
Management.
Alex Wilkes, National Vision’s President, commented, “These
leaders each bring extensive industry and retail experience that we
plan to leverage further with their expanded roles focused on
accelerating our transformation efforts and driving profitable
growth in our core brands.”
Select Preliminary Fourth Quarter and
Fiscal 2024 Financial Results
The Company today also announced select preliminary results for
the fourth quarter and full year fiscal 2024.
Preliminary Results for Fourth Quarter 2024
- Net revenue from continuing operations of approximately $437
million, an increase of 3.9% from the same quarter in fiscal year
2023
- Comparable store sales growth of approximately 2.6% and
Adjusted Comparable Store Sales Growth1 of approximately 1.5% from
the same quarter in fiscal year 2023
Preliminary Results for Fiscal Year 2024
- Net revenue from continuing operations of approximately $1,823
million, an increase of 3.8% from fiscal year 2023
- Comparable store sales growth of approximately 1.9% and
Adjusted Comparable Store Sales Growth1 of approximately 1.3%
compared to fiscal year 2023
- The Company now expects Adjusted Operating Income1 from
continuing operations to be slightly above the higher end of its
previously provided guidance for fiscal 2024
"We are pleased to have delivered fourth quarter adjusted
comparable store sales growth that enables us to provide select
preliminary full year results more in line with the higher end of
our prior guidance ranges,” continued Fahs. “Our fourth quarter
performance reflects initial benefits from transformation
initiatives as well as the impact from the timing of unearned
revenue. We look forward to sharing more on our results and the
progress we are making on our transformation when we report fourth
quarter earnings. We have a strong team with deep bench strength,
and with key leaders taking on expanded leadership roles, I am
confident that we will continue to execute and deliver on our
commitment to position National Vision for long-term profitable
growth."
The unaudited financial results disclosed herein are preliminary
based on the most current information available to management and
are subject to change until completion of our financial closing
procedures for the fourth quarter and full fiscal year 2024. As a
result, our actual results may change as a result of such financial
closing procedures, final adjustments, management's review of
results, and other developments that may arise between now and the
time our financial results for the fourth quarter and full fiscal
year 2024 are finalized, and our results could vary from the
preliminary results set forth above.
The Company expects to release financial results for the fourth
quarter and full fiscal year 2024 on Wednesday, February 26,
2025.
Non-GAAP Financial Measures
Adjusted Comparable Store Sales Growth: We measure
Adjusted Comparable Store Sales Growth as the increase or decrease
in sales recorded by the comparable store base in any reporting
period, compared to sales recorded by the comparable store base in
the prior reporting period, which we calculate as follows: (i)
sales are recorded on a cash basis (i.e. when the order is placed
and paid for or submitted to a managed care payor, compared to when
the order is delivered), utilizing cash basis point of sale
information from stores; (ii) stores are added to the calculation
during the 13th full fiscal month following the store’s opening;
(iii) closed stores are removed from the calculation for time
periods that are not comparable; (iv) sales from partial months of
operation are excluded when stores do not open or close on the
first day of the month; and (v) when applicable, we adjust for the
effect of the 53rd week. Quarterly, year-to-date and annual
adjusted comparable store sales are aggregated using only sales
from all whole months of operation included in both the current
reporting period and the prior reporting period. When a partial
month is excluded from the calculation, the corresponding month in
the subsequent period is also excluded from the calculation. There
may be variations in the way in which some of our competitors and
other retailers calculate comparable store sales. As a result, our
adjusted comparable store sales may not be comparable to similar
data made available by other retailers.
Adjusted Operating Income: We define Adjusted Operating
Income from continuing operations as net income (loss), minus
income (loss) from discontinued operations, net of tax, plus
interest expense (income), net and income tax provision (benefit),
further adjusted to exclude stock-based compensation expense,
(gain) loss on extinguishment of debt, asset impairment, litigation
settlement, secondary offering expenses, management realignment
expenses, long-term incentive plan expenses, Enterprise Resource
Planning (“ERP”) and Customer Relationship Management (“CRM”)
implementation expenses and certain other expenses.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”) and Section 21E of the Securities
Exchange Act of 1934. These statements include, but are not limited
to, statements related to our current beliefs and expectations
regarding the performance of our industry, the Company’s strategic
direction, market position, prospects including remote medicine and
optometrist recruiting and retention initiatives, and future
results. You can identify these forward-looking statements by the
use of words such as “outlook,” “guidance,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “should,” “could,”
“seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates” or the negative version of these words or other
comparable words. Caution should be taken not to place undue
reliance on any forward-looking statement as such statements speak
only as of the date when made. We undertake no obligation to
publicly update or review any forward-looking statement, whether as
a result of new information, future developments or otherwise,
except as required by law.
Forward-looking statements are not guarantees and are subject to
various risks and uncertainties, which may cause actual results to
differ materially from those implied in forward-looking statements.
Such factors include, but are not limited to, completion of our
financial closing procedures for the fourth quarter and full fiscal
year 2024, the termination of our partnership with Walmart,
including the transition period and other wind down activities,
will have an impact on our business, revenues, profitability and
cash flows, which impact could be material; market volatility, an
overall decline in the health of the economy and other factors
impacting consumer spending, including inflation, uncertainty in
financial markets, recessionary conditions, escalated interest
rates, the timing and issuance of tax refunds, governmental
instability, war and natural disasters, may affect consumer
purchases, which could reduce demand for our products and
materially harm our sales, profitability and financial condition;
failure to recruit and retain vision care professionals for
in-store roles or to provide remote care offerings could adversely
affect our business, financial condition and results of operations;
the optical retail industry is highly competitive, and if we do not
compete successfully, our business may be adversely impacted; if we
fail to open and operate new stores (including as a result of store
conversions) in a timely and cost-effective manner or fail to
successfully enter new markets, our financial performance could be
materially and adversely affected; if the performance of our Host
brands declines or we are unable to maintain or extend our
operating relationships with our Host partners, our business,
profitability and cash flows may be adversely affected and we may
be required to incur impairment charges; we are a low-cost provider
and our business model relies on the low-cost of inputs and factors
such as wage rate increases, inflation, cost increases, increases
in the price of raw materials and energy prices could have a
material adverse effect on our business, financial condition and
results of operations; we require significant capital to fund our
expanding business, including updating our Enterprise Resource
Planning (“ERP”) and Customer Relationship Management (“CRM”), and
other technological, systems and capabilities; our ability to
successfully implement transformation initiatives (including store
fleet optimization); our growth strategy could strain our existing
resources and cause the performance of our existing stores to
suffer; our success depends upon our marketing, advertising and
promotional efforts and if we are unable to implement them
successfully or efficiently, or if our competitors are more
effective than we are, we may experience a material adverse effect
on our business, financial condition and results of operations; we
are subject to risks associated with leasing substantial amounts of
space, including future increases in occupancy costs; certain
technological advances, greater availability of, or increased
consumer preferences for, vision correction alternatives to
prescription eyeglasses or contact lenses, or future drug
development for the correction of vision-related problems may
reduce the demand for our products and adversely impact our
business and profitability; if we fail to retain our existing
senior management team or attract qualified new personnel such
failure could have a material adverse effect on our business,
financial condition and results of operations; our profitability
and cash flows may be negatively affected if we are not successful
in managing our inventory balances and inventory shrinkage; our
operating results and inventory levels fluctuate on a seasonal
basis; our e-commerce and omni-channel business faces distinct
risks, and our failure to successfully manage those risks could
have a negative impact on our profitability; we depend on our
distribution centers and/or optical laboratories; we may incur
losses arising from our investments in technological innovators in
the optical retail industry, including artificial intelligence,
which would negatively affect our financial results; environmental,
social and governance (“ESG”) issues, including those related to
climate change, could have a material adverse effect on our
business, financial condition and results of operations; changing
climate and weather patterns leading to severe weather and
disasters may cause significant business interruptions and
expenditures; future operational success depends on our ability to
develop, maintain and extend relationships with managed vision care
companies, vision insurance providers and other third-party payors;
we face risks associated with vendors from whom our products are
sourced and are dependent on a limited number of suppliers; we rely
heavily on our information technology systems, as well as those of
our vendors, for our business to effectively operate and to
safeguard confidential information; any significant failure,
inadequacy, interruption or security breach could adversely affect
our business, financial condition and operations; we rely on
third-party coverage and reimbursement, including government
programs, for an increasing portion of our revenues, the future
reduction of which could adversely affect our results of
operations; we are subject to extensive state, local and federal
vision care and healthcare laws and regulations and failure to
adhere to such laws and regulations would adversely affect our
business; we are subject to managed vision care laws and
regulations; we are subject to rapidly changing and increasingly
stringent laws, regulations, contractual obligations, and industry
standards relating to privacy, data security and data protection
which could subject us to liabilities that adversely affect our
business, operations and financial performance; we could be
adversely affected by product liability, product recall or personal
injury issues; failure to comply with laws, regulations and
enforcement activities or changes in statutory, regulatory,
accounting and other legal requirements could potentially impact
our operating and financial results; adverse judgments or
settlements resulting from legal proceedings relating to our
business operations could materially adversely affect our business,
financial condition and results of operations; we may not be able
to adequately protect our intellectual property, which could harm
the value of our brand and adversely affect our business; we have a
significant amount of indebtedness which could adversely affect our
business and financial position, including limiting our business
flexibility and preventing us from meeting our debt obligations; a
change in interest rates may adversely affect our business; our
credit agreement contains restrictions that limit our flexibility
in operating our business; conversion of the 2025 Notes could
dilute the ownership interest of existing stockholders or may
otherwise depress the price of our common stock; and risks related
to owning our common stock, including our ability to comply with
requirements to design and implement and maintain effective
internal controls. Additional information about these and other
factors that could cause National Vision’s results to differ
materially from those described in the forward-looking statements
can be found in filings by National Vision with the Securities and
Exchange Commission (“SEC”), including our latest Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are
accessible on the SEC’s website at www.sec.gov. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in our filings with the SEC.
Non-GAAP Financial Measures
National Vision uses certain non-GAAP financial measures,
including Adjusted EBITDA, which are designed to supplement, and
not substitute, financial information presented in accordance with
generally accepted accounting principles in the United States of
America (“GAAP”) because management believes such measures are
useful to investors. Additional information about these measures
and a reconciliation to the nearest GAAP financial measures is
detailed in National Vision’s press release regarding financial
results for the third quarter of 2024, which is available at
www.nationalvision.com/investors.
About National Vision Holdings, Inc.
National Vision Holdings, Inc. (NASDAQ: EYE) is one of the
largest optical retail companies in the United States with over
1,200 stores in 38 states and Puerto Rico. With a mission of
helping people by making quality eye care and eyewear more
affordable and accessible, the company operates four retail brands:
America’s Best, Eyeglass World, and Vista Opticals inside select
Fred Meyer stores and on select military bases, and an e-commerce
website DiscountContacts.com, offering a variety of products and
services for customers’ eye care needs. For more information,
please visit www.nationalvision.com.
Reconciliation of Adjusted Comparable Store Sales Growth to
Total Comparable Store Sales Growth
Comparable store sales growth
(a)
Three Months Ended December 28,
2024
Three Months Ended December 30,
2023
Fiscal Year 2024
Fiscal Year 2023
Owned & Host segment
America’s Best
2.0 %
7.2 %
1.8 %
4.0 %
Eyeglass World
(1.7) %
1.2 %
(2.2) %
(1.0) %
Military
0.2 %
5.1 %
(0.5) %
3.0 %
Fred Meyer
(2.1) %
(0.2) %
(4.5) %
(4.6) %
Total comparable store sales growth
2.6 %
6.6 %
1.9 %
3.4 %
Adjusted Comparable Store Sales Growth
from continuing operations (b)
1.5 %
6.3 %
1.3 %
3.3 %
- Total comparable store sales from continuing operations is
calculated based on consolidated net revenue from continuing
operations excluding the impact of (i) Corporate/Other segment net
revenue, (ii) sales from stores opened less than 13 months, (iii)
stores closed in the periods presented, (iv) sales from partial
months of operation when stores do not open or close on the first
day of the month, and (v) if applicable, the impact of a 53rd week
in a fiscal year. Brand-level comparable store sales growth is
calculated based on cash basis revenues consistent with what the
CODM reviews, and consistent with reportable segment revenues
presented in Note 16. “Segment Reporting” in our consolidated
financial statements.
- Adjusted Comparable Store Sales Growth from continuing
operations includes the effect of deferred and unearned revenue as
if such revenues were earned at the point of sale, resulting in the
following changes from total comparable store sales growth based on
consolidated net revenue from continuing operations; with respect
to the Company’s 2025 Outlook, Adjusted Comparable Store Sales
Growth includes an estimated 0.5% decrease for the effect of
deferred and unearned revenue as if such revenues were earned at
the point of sale.
1 This release includes certain Non-GAAP Financial Measures that
are not recognized under generally accepted accounting principles
(“GAAP”). Please see “Non-GAAP Financial Measures for more
information.
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Investors: investor.relations@nationalvision.com National
Vision Holdings, Inc. Tamara Gonzalez
ICR, Inc. Caitlin Churchill
Media: media@nationalvision.com
National Vision Holdings, Inc. Racheal Peters
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