National Vision (EYE -6.25%), a major value-focused optical retailer, released its results for the fiscal second quarter ended June 29, 2025, on August 6, 2025. It delivered GAAP revenue and non-GAAP earnings well above Wall Street forecasts, propelled by growth in comparable store sales, expanded margins, and tight expense control. Revenue reached $486.4 million, outpacing the consensus estimate of $469.5 million, while earnings per share (Non-GAAP) of $0.18 exceeded expectations of $0.14. This quarter reflected significant progress on key initiatives and led management to raise its full-year fiscal 2025 guidance. Overall, the period showed broad-based financial improvements and increased confidence from leadership about the rest of the year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.18 | $0.14 | $0.15 | 20.0% |
| Revenue | $486.4 million | N/A | $451.7 million | 7.7% |
| Adjusted Operating Income | $23.8 million | $14.1 million | 69.1% | |
| Adjusted Operating Margin | 4.9% | 3.1% | 1.8 pp | |
| Adjusted Comparable Store Sales Growth | 5.9% | 2.4% | 3.5 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in the fiscal first quarter 2025 earnings report.
Business overview and success factors
National Vision is a retail optical chain that operates over 1,200 locations under brands including America's Best and Eyeglass World. The company focuses on offering affordable eye exams and prescription eyewear, often through bundled deals. For example, America's Best advertises two pairs of glasses plus an eye exam for $89.95, a price point designed to attract price-sensitive customers.
The business relies heavily on recurring sales from customers who regularly need new eyeglasses and contact lenses. Another focus is disciplined store expansion and optimization, with most new stores reaching profitability in their second year and returning invested capital within three to five years. The company also seeks to increase its presence in the managed care space, attracting customers who use vision benefits as a way to boost both volume and transaction size. Regulatory compliance is central, given the firm’s operations span many states and involve health data and insurance.
Quarterly highlights and financial performance
During the period, the company posted a 7.7% gain in net revenue versus the same quarter last year. This was driven mostly by higher spending per shopper -- known as average ticket growth, which increased by 4.5% -- and a meaningful increase in adjusted comparable store sales of 5.9%. This marked the tenth consecutive quarter of positive comparable store sales growth. Store-level profitability improved sharply, with adjusted operating income up 69.1% versus the prior-year period. Adjusted operating margin rose by 1.8 percentage points, reflecting increased efficiency.
Cost management stood out as a key contributor: costs rose much less quickly than revenue, allowing more of each sales dollar to reach the bottom line. Specifically, costs applicable to revenue increased by just 3.5%, and selling, general, and administrative (SG&A) expenses as a percentage of sales declined to 50.8%. The company’s shift to premium branded frames and a greater focus on managed care customers supported both higher average transaction values and a better customer mix. This transformation was particularly evident at America's Best, with a 6.3% increase in comparable store sales, and Eyeglass World had 2.8% comparable store sales growth and Military locations had 4.4% comparable store sales growth in the quarter.
The company opened eight new stores, primarily under the America’s Best banner, and closed five, bringing the total count to 1,240. Management continues to test smaller footprint stores and new retail formats, aiming to maximize returns on invested capital. Most newly opened stores were profitable by their second year, matching the company’s historic trends. Notably, managed care segments contributed significantly to growth.
The company addressed possible impacts from new tariffs and expects to offset any related cost increases with pricing moves and cost savings. Regarding staffing and regulatory risks, no material issues were reported; retention of optometrists and staff remained healthy, and less than five stores were without sufficient doctor coverage at the end of the quarter. The company also made further debt repayments, resulting in a cash balance of $48.5 million and total debt of $272.4 million.
Looking ahead: Guidance and what to watch
Leadership raised fiscal 2025 guidance following the strong quarter. The company now expects revenue between $1.934 billion and $1.970 billion, with adjusted comparable store growth of 3.0% to 5.0%. Adjusted operating income is projected between $85 million and $95 million, and adjusted diluted EPS is expected to be $0.62 to $0.70. About 32 new stores are set to open during the year, with management placing greater emphasis on disciplined capital allocation and ongoing transformation investments. Notably, management estimates a 53rd week in fiscal 2025 will add an additional $35 million in net revenue and $3 million in adjusted operating income.
Investors should monitor several areas in the coming months. Average ticket increased by 4.5% and customer transactions increased by 0.7% after prior declines. Management also flagged continued investments in technology, customer data platforms, and store redesigns. They acknowledged potential short-term headwinds from tariffs, fluctuations in consumer demand, and broader economic uncertainty. While management outlined ways to offset most new tariff costs, the guidance provided does not factor in additional impacts from further policy changes or corresponding cost mitigation efforts.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
