National Vision Holdings, Inc. Reports First Quarter 2026 Financial Results
DULUTH, Ga.--( BUSINESS WIRE)--National Vision Holdings, Inc. (NASDAQ: EYE) (“National Vision,” “we,” “our,” “us” or the “Company”) today reported its financial results for the first quarter ended April 4, 2026.
Alex Wilkes, National Vision’s CEO, said, “We delivered a solid first quarter, reinforcing that the transformation we laid out at Investor Day is translating into higher-quality growth and improved profitability. Customers continued to opt into better products, we expanded our managed care business, and we meaningfully grew operating margins through disciplined expense management. We believe our advancements across merchandising and store experience are strengthening our position as the destination for value in the optical category – delivering great branded products and leading eye exams without compromise, for every customer.”
Mr. Wilkes continued, “We have the right team and the right strategy in place to continue driving our transformation. Building on our first-quarter achievements, we are confidently moving forward with activating our store segmentation initiative and executing our premium lens strategy. Importantly, we are leveraging data and consumer insights more than ever before, enabling us to be a more agile and customer-centric organization. As we move through 2026, we remain focused on executing with discipline and delivering sustainable value for our customers and shareholders.”
This release includes certain Non-GAAP Financial Measures that are not recognized under generally accepted accounting principles (“GAAP”), including Adjusted Comparable Store Sales Growth, Adjusted Operating Income, Adjusted Operating Margin and Adjusted Diluted EPS. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP to GAAP Financial Measures” below for more information.
First Quarter 2026 Summary
Balance Sheet and Cash Flow Highlights as of April 4, 2026
Expands Relationship with Army and Air Force Exchange Service (AAFES)
The Company announced an expanded relationship with the Army and Air Force Exchange Service (AAFES), designating National Vision as the sole optical retail partner on AAFES bases in the U.S. The agreement, effective April 1, 2026, adds 20 Military stores and expands the Company’s presence into two additional states, and represents an important step in broadening its reach through the Emerging Brands portfolio.
Fiscal 2026 Outlook
The Company is reiterating its fiscal 2026 outlook for the 52 weeks ending January 2, 2027, as set forth below.
Fiscal 2026 Outlook
(As of May 13, 2026)
New Stores (1)
30-35
Adjusted Comparable Store Sales Growth (2)
3.0% - 6.0%
Net Revenue
$2.033 billion - $2.091 billion
Adjusted Operating Income (2)
$107 million - $133 million
Adjusted Diluted EPS (2)(3)
$0.85 - $1.09
Depreciation and Amortization (4)
$88 million - $92 million
Interest (5)
$14 million - $16 million
Tax Rate (6)
28%
Capital Expenditures
$73 million - $78 million
1 Assumes primarily America's Best new stores, does not include 20 Military store additions in April 2026.
2 Refer to “Non-GAAP Financial Measures” below for more information.
3 Assumes approximately 82 million shares.
4 Includes amortization of acquisition intangibles of approximately $0.7 million, which is excluded in the definition of Adjusted Operating Income.
5 Before the impact of gains or losses on change in fair value of derivatives and charges related to debt discounts and deferred financing costs.
6 Excluding the impact of vesting of restricted stock units and stock option exercises.
The fiscal 2026 outlook information provided in this release includes Adjusted Operating Income and Adjusted Diluted EPS guidance. The Company is not able to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including taxes and non-recurring items, which would be included in GAAP results.
The fiscal 2026 outlook is forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. These uncertainties include, but are not limited to, dynamic market conditions, unexpected disruptions including additional regulatory actions impacting international trade such as tariffs, issues relating to the implementation of our transformation initiatives, geopolitical issues, higher transportation or other costs due to rising fuel or energy costs, and other macroeconomic risks and uncertainties. Actual results may vary and those variations may be material. As such, the Company’s results may not fall within the ranges contained in its fiscal 2026 outlook. The Company uses these forward-looking measures internally to assess and benchmark its results and strategic plans. See “Forward-Looking Statements” below.
Conference Call Details
The Company will host a conference call to discuss the first quarter 2026 financial results and fiscal-year 2026 guidance today, May 13, 2026, at 8:30 a.m. Eastern Time. To pre-register for the conference call and obtain a dial-in number and passcode, please refer to the “Investors” section of the Company’s website at www.ir.nationalvision.com. A live audio webcast of the conference call will be available on the “Investors” section of the Company’s website at www.ir.nationalvision.com, where presentation materials will be posted prior to the conference call. A replay of the audio webcast will also be archived on the “Investors” section of the Company’s website.
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 40 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 Contacts & Eyeglasses, 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.
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 contained under “Fiscal 2026 Outlook,” as well as other 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 variations 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, market volatility, an overall decline in the health of the economy, global macroeconomic conditions and other factors that may affect consumer spending or behavior; our ability to successfully implement our strategic initiatives, or anticipate the impact of important strategic initiatives; our ability to recruit and retain vision care professionals for in-store roles or to provide remote care offerings; our ability to compete in the highly competitive optical retail industry; our ability to maintain, protect, and enhance the value of our owned brands; the success of our marketing, advertising and promotional efforts; our ability to open and operate new stores (including as a result of store conversions) in a timely and cost-effective manner or to successfully enter new markets; our ability to increase sales in existing stores and to successfully reinvest in existing stores; our ability to successfully implement our pricing strategies; changes in the cost of inputs, and factors such as wage rate increases, inflation, cost increases, tariffs and related measures, increases in the price of raw materials and energy prices; significant capital requirements to fund our expanding business including updating our Enterprise Resource Planning (“ERP”) and Customer Relationship Management (“CRM”), and other technological, systems and capabilities; the potential for our growth strategies to strain our existing resources and cause the performance of our existing stores to suffer; risks associated with leasing substantial amounts of space, including future increases in occupancy costs; our ability to successfully manage the distinct risks faced by our e-commerce and omni-channel business; our ability to retain our existing senior management team, attract qualified new personnel or successfully implement our succession plans; seasonal fluctuations in our operating results and inventory levels; the potential impacts of catastrophic events, including changing climate and weather patterns leading to severe weather and natural disasters; the potential for 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 to reduce the demand for our products; our ability to successfully manage our inventory balances and inventory shrinkage; the potential for the loss of, or disruption in the operations of, one or more of our distribution centers or optical laboratories, which would impact our ability to process and fulfill customer orders and deliver our products in a timely manner, or at all, or result in quality issues; the performance of our Host brands and our ability to maintain or extend our operating relationships with our Host partners; sustainability issues, including those related to climate change; our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors; our reliance on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues; risks associated with vendors from whom our products and certain services are sourced and our dependence on a limited number of suppliers; changes in U.S. or international laws, including tariffs, affecting our ability to source merchandise and services internationally; the impact of any significant failure, inadequacy, interruption or security breach affecting our information technology systems, or those of our vendors; our ability to comply with state, local and federal vision care and healthcare laws and regulations, as well as managed vision care laws and regulations; liability stemming from rapidly changing and increasingly stringent laws, regulations, contractual obligations, and industry standards relating to privacy, data security and data protection; product liability, product recall or personal injury issues; our ability to comply with laws, regulations and enforcement activities or changes in statutory, regulatory, accounting and other legal requirements; the outcome of legal proceedings relating to our business operations; the protection and validity of our intellectual property; risks related to our indebtedness; changes in interest rates; restrictions in our credit agreement that limit our flexibility in operating our business; and risks related to owning our common stock. 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
To supplement the Company’s financial information presented in accordance with GAAP and aid understanding of the Company’s business performance, the Company uses certain non-GAAP financial measures, namely “EBITDA,” “Adjusted Operating Income,” “Adjusted Operating Margin,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Adjusted Diluted EPS,” “Adjusted Comparable Stores Sales Growth,” “Adjusted SG&A,” and “Adjusted SG&A Percent of Net Revenue.” We believe EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, and Adjusted SG&A Percent of Net Revenue assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses these non-GAAP financial measures to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.
To supplement the Company’s comparable store sales growth presented in accordance with GAAP, the Company provides “Adjusted Comparable Store Sales Growth,” which is a non-GAAP financial measure we believe is useful because it provides timely and accurate information relating to the two core metrics of retail sales: number of transactions and value of transactions. Management uses Adjusted Comparable Store Sales Growth as the basis for key operating decisions, such as allocation of advertising to particular markets and implementation of special marketing programs. Accordingly, we believe that Adjusted Comparable Store Sales Growth provides timely and accurate information relating to the operational health and overall performance of each brand. We also believe that, for the same reasons, investors find our calculation of Adjusted Comparable Store Sales Growth to be meaningful.
EBITDA: We define EBITDA as net income (loss), plus interest expense (income), net, income tax provision (benefit) and depreciation and amortization.
Adjusted Operating Income: We define Adjusted Operating Income as net income (loss), 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, amortization of acquisition intangibles, Enterprise Resource Planning (“ERP”) and Customer Relationship Management (“CRM”) implementation expenses, shareholder activism costs, severance and associate-related costs associated with organizational restructuring and certain other expenses.
Adjusted Operating Margin: We define Adjusted Operating Margin as Adjusted Operating Income as a percentage of net revenue.
Adjusted EBITDA: We define Adjusted EBITDA as net income (loss), plus interest expense (income), net, income tax provision (benefit) and depreciation and amortization, 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, ERP and CRM implementation expenses, shareholder activism costs, severance and associate-related costs associated with organizational restructuring and certain other expenses.
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net revenue.
Adjusted Diluted EPS: We define Adjusted Diluted EPS as diluted earnings (loss) per share, adjusted for the per share impact of 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, amortization of debt discounts and deferred financing costs of our term loan borrowings, amortization of the conversion feature and deferred financing costs related to our 2.50% convertible senior notes due on May 15, 2025 ("2025 Notes") when not required under U.S. GAAP to be added back for diluted earnings (loss) per share, derivative fair value adjustments, ERP and CRM implementation expenses, shareholder activism, severance and associate-related costs associated with restructuring and certain other expenses, less the tax effect of these adjustments, including tax expense (benefit) from stock-based compensation.
Adjusted SG&A: We define Adjusted SG&A as SG&A adjusted to exclude stock-based compensation expense, litigation settlement, secondary offering expenses, management realignment expenses, long-term incentive plan expense, ERP and CRM implementation expenses, shareholder activism, severance and employee-related costs associated with restructuring and certain other expenses.
Adjusted SG&A Percent of Net Revenue: We define Adjusted SG&A Percent of Net Revenue as Adjusted SG&A as a percentage of total net revenue.
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 at the point of sale (ii) sales are adjusted for managed care insurance collection estimates (iii) stores are added to the calculation during the 13th full fiscal month following the store’s opening; (iv) closed stores are removed from the calculation for time periods that are not comparable; (v) sales from partial months of operation are excluded when stores do not open or close on the first day of the month; and (vi) when applicable, we adjust for the effect of the 53rd week; (vii) in fiscal years following a 53-week fiscal year, there is a one week calendar shift to the comparable prior year period. For the calculation of the adjusted comparable store sales growth in the first quarter of 2026, we compared weeks 1 through 13 in fiscal 2026 against weeks 2 through 14 in fiscal 2025. 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.
EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, Adjusted SG&A Percent of Net Revenue and Adjusted Comparable Store Sales Growth are not recognized terms under U.S. GAAP and should not be considered as an alternative to net income or income from operations as a measure of financial performance, SG&A, the ratio of SG&A to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, comparable store sales growth as a measure of operating performance, or any other performance measure derived in accordance with U.S. GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management’s discretionary use as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
Please see “Reconciliation of Non-GAAP to GAAP Financial Measures” below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures.
National Vision Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
In thousands, except share data
As of
April 4, 2026
As of
January 3, 2026
ASSETS
Current assets:
Cash and cash equivalents
$
67,898
$
38,708
Accounts receivable, net
43,990
57,322
Inventories, net
107,706
89,318
Prepaid expenses and other current assets
41,029
40,374
Total current assets
260,623
225,722
Noncurrent assets:
Property and equipment, net
342,103
344,619
Goodwill
700,976
700,642
Trademarks and trade names
240,547
240,547
Other intangible assets, net
7,385
7,554
Right of use assets
397,365
394,896
Other assets
71,484
69,698
Total noncurrent assets
1,759,860
1,757,956
Total assets
$
2,020,483
$
1,983,678
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
87,182
$
78,999
Other payables and accrued expenses
106,626
109,674
Unearned revenue
50,427
52,279
Deferred revenue
66,309
64,560
Current maturities of long-term debt and finance lease obligations
16,588
16,583
Current operating lease obligations
91,356
90,313
Total current liabilities
418,488
412,408
Noncurrent liabilities:
Long-term debt and finance lease obligations, less current portion and debt discount
225,246
229,327
Noncurrent operating lease obligations
358,937
358,377
Deferred revenue
22,835
22,517
Other liabilities
8,966
8,944
Deferred income taxes, net
88,005
82,572
Total non-current liabilities
703,989
701,737
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 87,366,539 and 86,278,538 shares issued as of April 4, 2026 and January 3, 2026, respectively; 80,114,673 and 79,416,050 shares outstanding as of April 4, 2026 and January 3, 2026, respectively
873
862
Additional paid-in capital
841,485
834,000
Accumulated other comprehensive income (loss)
194
(121
)
Retained earnings
286,898
255,717
Treasury stock, at cost; 7,251,866 and 6,862,488 shares as of April 4, 2026 and January 3, 2026, respectively
(231,444
)
(220,925
)
Total stockholders’ equity
898,006
869,533
Total liabilities and stockholders’ equity
$
2,020,483
$
1,983,678
National Vision Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
Three Months Ended
In thousands, except per share amounts
April 4, 2026
March 29, 2025
Revenue:
Net product sales
$
439,500
$
412,765
Net sales of services and plans
104,380
97,559
Total net revenue
543,880
510,324
Costs applicable to revenue (exclusive of depreciation and amortization):
Products
126,817
116,914
Services and plans
92,319
88,276
Total costs applicable to revenue
219,136
205,190
Operating expenses:
Selling, general and administrative expenses
256,092
255,532
Depreciation and amortization
23,442
22,963
Asset impairment
—
502
Other expense (income), net
(29
)
—
Total operating expenses
279,505
278,997
Income from operations
45,239
26,137
Interest expense, net
2,848
4,572
Earnings before income taxes
42,391
21,565
Income tax provision
11,210
7,379
Net income
$
31,181
$
14,186
Earnings per share:
Basic
$
0.39
$
0.18
Diluted
$
0.38
$
0.18
Weighted average shares outstanding:
Basic
79,655
78,858
Diluted
81,492
79,259
Comprehensive income:
Net income
$
31,181
$
14,186
Unrealized gain on hedge instruments
420
—
Tax provision of unrealized gain on hedge instruments
105
—
Comprehensive income
$
31,496
$
14,186
National Vision Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended
In Thousands
April 4, 2026
March 29, 2025
Cash flows from operating activities:
Net income
$
31,181
$
14,186
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
23,442
22,963
Amortization of debt discount and deferred financing costs
267
367
Amortization of cloud computing implementation costs
2,402
2,157
Asset impairment
—
502
Deferred income tax expense (benefit)
5,433
(5,783
)
Stock-based compensation expense
7,022
7,029
Inventory adjustments
1,224
1,039
Other
(248
)
(26
)
Changes in operating assets and liabilities:
Accounts receivable
13,222
(3,341
)
Inventories
(19,612
)
4,309
Operating lease right of use assets and lease liabilities
(403
)
(666
)
Other assets
(4,608
)
(10,922
)
Accounts payable
8,183
(16,982
)
Deferred and unearned revenue
215
10,258
Other liabilities
(6,015
)
7,149
Net cash provided by operating activities
61,705
32,239
Cash flows from investing activities:
Purchase of property and equipment
(17,569
)
(20,225
)
Other
(703
)
—
Net cash used for investing activities
(18,272
)
(20,225
)
Cash flows from financing activities:
Repayments on long-term debt
(3,313
)
(3,313
)
Payments on finance lease obligations
(813
)
(732
)
Proceeds from issuance of common stock
501
265
Purchase of treasury stock
(10,519
)
(1,624
)
Net cash used for financing activities
(14,144
)
(5,404
)
Net change in cash, cash equivalents and restricted cash
29,289
6,610
Cash, cash equivalents and restricted cash, beginning of year
40,302
75,237
Cash, cash equivalents and restricted cash, end of period (i)
$
69,591
$
81,847
(i) Cash balance includes restricted cash of $1.7 million and $1.8 million for the three months ended April 4, 2026 and March 29, 2025, respectively, that are not reflected in cash and cash equivalents shown on the Condensed Consolidated Balance Sheets.
National Vision Holdings, Inc. and Subsidiaries
Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited)
Reconciliation of Adjusted Operating Income to Net Income
Three Months Ended
In thousands
April 4, 2026
March 29, 2025
Net income
$
31,181
$
14,186
Interest expense, net
2,848
4,572
Income tax provision
11,210
7,379
Stock-based compensation expense (a)
7,022
7,029
Asset impairment (b)
—
502
Amortization of acquisition intangibles (c)
169
169
ERP and CRM implementation expenses (d)
372
2,315
Other (e)
2,658
5,123
Adjusted Operating Income
$
55,460
$
41,275
Net income margin
5.7
%
2.8
%
Adjusted Operating Margin
10.2
%
8.1
%
Note: Percentages reflect line item as a percentage of total net revenue, adjusted for rounding.
Reconciliation of EBITDA and Adjusted EBITDA to Net Income
Three Months Ended
In thousands
April 4, 2026
March 29, 2025
Net income
$
31,181
$
14,186
Interest expense, net
2,848
4,572
Income tax provision
11,210
7,379
Depreciation and amortization
23,442
22,963
EBITDA
68,681
49,100
Stock-based compensation expense (a)
7,022
7,029
Asset impairment (b)
—
502
ERP and CRM implementation expenses (d)
372
2,315
Other (e)
2,658
5,123
Adjusted EBITDA
$
78,733
$
64,069
Net income margin
5.7
%
2.8
%
Adjusted EBITDA Margin
14.5
%
12.6
%
Note: Percentages reflect line item as a percentage of total net revenue, adjusted for rounding.
Reconciliation of Adjusted Diluted EPS to Diluted EPS
Three Months Ended
Shares in thousands, except per share amounts
April 4, 2026
March 29, 2025
Diluted EPS
$
0.38
$
0.18
Stock-based compensation expense (a)
0.09
0.09
Asset impairment (b)
—
0.01
ERP and CRM implementation expenses (d)
—
0.03
Other (e)
0.04
0.06
Tax effects (f)
(0.06
)
(0.03
)
Adjusted Diluted EPS
$
0.45
$
0.34
Weighted average diluted shares outstanding
81,492
79,259
Reconciliation of Adjusted SG&A to SG&A
Three Months Ended
In thousands
April 4, 2026
March 29, 2025
SG&A
$
256,092
$
255,532
Stock-based compensation expense (a)
7,022
7,029
ERP and CRM implementation expenses (d)
372
2,315
Other (e)
2,658
5,123
Adjusted SG&A
$
246,040
$
241,065
SG&A Percent of Net Revenue
47.1
%
50.1
%
Adjusted SG&A Percent of Net Revenue
45.2
%
47.2
%
Note: Percentages reflect line item as a percentage of total net revenue.
(a)
Non-cash charges related to stock-based compensation programs, which may vary from period to period depending on the timing of awards and performance vesting conditions.
(b)
Reflects write-off related to non-cash impairment charges of long-lived assets, primarily impairment of property, equipment and lease-related assets on closed or underperforming stores.
(c)
Amortization of the increase in carrying values of finite-lived intangible assets resulting from the application of purchase accounting following the acquisition of the Company by affiliates of KKR & Co. Inc.
(d)
Costs related to the Company’s ERP and CRM implementation.
(e)
Other adjustments include amounts that management believes are not representative of our operating performance (amounts in brackets represent reductions in Adjusted Operating Income, Adjusted Diluted EPS, Adjusted EBITDA and Adjusted SG&A), which are primarily related to shareholder activism costs of $2.1 million for the three months ended March 29, 2025, severance and associate-related costs associated with organizational restructuring of $2.1 million and $2.1 million for the three months ended April 4, 2026 and March 29, 2025, respectively, and other expenses and adjustments.
(f)
Represents the income tax effect of the total adjustments at our combined statutory federal and state income tax rates, including tax expense (benefit) from stock-based compensation.
Reconciliation of Adjusted Comparable Store Sales Growth to Total Comparable Store Sales Growth
Comparable store sales growth (a)
Three Months Ended April 4, 2026
Three Months Ended March 29, 2025
2026 Outlook (b)
Owned & Host segment
America’s Best
4.4
%
5.9
%
Eyeglass World
5.2
%
3.1
%
Military
2.2
%
1.7
%
Fred Meyer
4.7
%
1.6
%
Total comparable store sales growth
4.4
%
4.1
%
2.8% - 5.8%
Adjustments for effects of: (b)
Unearned & deferred revenue
0.1
%
1.4
%
0.2%
Adjusted Comparable Store Sales Growth
4.5
%
5.5
%
3.0% - 6.0%
(a)
We calculate total comparable store sales based on consolidated net revenue excluding the impact of (i) Corporate and other 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; (vi) in fiscal years following a 53-week fiscal year, there is a one week calendar shift to the comparable prior-year period. For the calculation of the adjusted comparable store sales growth in the first quarter of 2026, we compared weeks 1 through 13 in fiscal 2026 against weeks 2 through 14 in fiscal 2025. Brand-level comparable store sales growth is calculated based on point of sale revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 15. “Segment Reporting” in our Annual Report on Form 10-K for the period ended January 3, 2026.
(b)
Adjusted Comparable Store Sales Growth includes the effect of deferred and unearned revenue as if such revenues were earned at the point of sale, resulting in the changes from total comparable store sales growth based on consolidated net revenue.