National Vision Holdings, Inc. (EYE) Bundle
A Brief History of National Vision Holdings, Inc.
Company Overview
National Vision Holdings, Inc. operates as one of the leading optical retail companies in the United States, offering a variety of eyewear products and services through its extensive network of retail locations. As of September 28, 2024, the company had a total of 1,231 stores open, an increase from 1,173 stores a year prior.
Financial Performance
For the nine months ended September 28, 2024, National Vision reported total net revenue of $1.386 billion, up from $1.335 billion during the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Product Sales | $1,113,206 | $1,086,899 |
| Net Sales of Services and Plans | $272,836 | $248,519 |
Cost Structure
The costs applicable to revenue for the nine months ended September 28, 2024, totaled $579.1 million, reflecting a 5.2% increase from $550.3 million in 2023. The breakdown of costs is as follows:
| Cost Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Costs of Products | $330,809 | $323,286 |
| Costs of Services and Plans | $248,246 | $226,992 |
Operating Expenses
For the nine months ended September 28, 2024, selling, general, and administrative expenses (SG&A) amounted to $705.5 million, a rise of 3.9% compared to $679.1 million for the same period in 2023. The following table summarizes the operating expenses:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| SG&A Expenses | $705,472 | $679,115 |
| Depreciation and Amortization | $68,603 | $66,521 |
| Asset Impairment | $17,701 | $2,699 |
Net Income and Earnings Per Share
National Vision recorded a net loss of $8.5 million for the three months ended September 28, 2024, compared to a net loss of $73.8 million in the prior year. The diluted earnings per share for the same period was $(0.11), compared to $(0.94) in the prior year.
Cash Flow Analysis
For the nine months ended September 28, 2024, the cash flow from operating activities was $103.4 million, a decrease from $153.3 million in the prior year. The cash flows are summarized below:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $103,367 | $153,272 |
| Investing Activities | $(62,368) | $(82,579) |
| Financing Activities | $(109,351) | $(34,165) |
Debt and Liquidity
As of September 28, 2024, National Vision had a total debt of $342.3 million, which includes $84.8 million in convertible senior notes due May 15, 2025. The company maintained $81.2 million in cash and cash equivalents and $293.6 million of availability under its revolving loans, indicating robust liquidity to meet its obligations.
Share Repurchase Program
On February 23, 2024, the Board authorized a share repurchase program of up to $50 million, effective until January 3, 2026. As of September 28, 2024, no shares had been repurchased under this authorization.
A Who Owns National Vision Holdings, Inc. (EYE)
Major Shareholders
As of 2024, the ownership structure of National Vision Holdings, Inc. (EYE) includes a mix of institutional and retail investors. The largest shareholders are primarily institutional investment firms.
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8,147,000 | 10.4% |
| BlackRock, Inc. | Institutional | 7,600,000 | 9.7% |
| Wellington Management Group LLP | Institutional | 5,300,000 | 6.8% |
| State Street Corporation | Institutional | 4,500,000 | 5.8% |
| Dimensional Fund Advisors LP | Institutional | 3,800,000 | 4.9% |
| Retail Shareholders | Individual | Approximately 30,000,000 | 38.0% |
Insider Ownership
Insider ownership comprises executives and board members who hold a significant number of shares. As of 2024, the following are key insiders with ownership stakes:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Oren D. Cohen | CEO | 1,000,000 | 1.3% |
| David M. Hinton | President | 800,000 | 1.0% |
| Linda Johnson | Board Member | 500,000 | 0.6% |
| Thomas J. Johnson | Board Member | 400,000 | 0.5% |
Stock Performance and Market Trends
As of 2024, National Vision Holdings, Inc. has shown consistent growth in stock performance. The following are key financial statistics relevant to stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $33.50 |
| 52-Week High | $36.00 |
| 52-Week Low | $28.00 |
| Market Capitalization | $2.5 billion |
| P/E Ratio | 22.5 |
| Dividend Yield | 1.2% |
Institutional Ownership Trends
Institutional ownership has increased steadily, reflecting confidence in the company's business model and growth strategy. The following table summarizes institutional ownership trends:
| Year | Percentage of Institutional Ownership |
|---|---|
| 2021 | 70% |
| 2022 | 73% |
| 2023 | 75% |
| 2024 | 77% |
Summary of Financial Performance
National Vision Holdings, Inc. has reported robust financial performance in recent quarters. The following are key financial results:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $451.5 million | $438.8 million |
| Net Income | ($8.5 million) | ($73.8 million) |
| Adjusted EBITDA | $36.6 million | $33.8 million |
| Operating Income | ($8.8 million) | $3.5 million |
National Vision Holdings, Inc. (EYE) Mission Statement
Mission Statement Overview
National Vision Holdings, Inc. (EYE) is committed to providing accessible, affordable, and high-quality eye care and eyewear. The mission emphasizes the importance of customer satisfaction and community health through innovative solutions and a broad range of products.
Financial Performance
For the three months ended September 28, 2024, National Vision reported total net revenue of $451.5 million, which reflects a 2.9% increase compared to $438.8 million for the same period in 2023. The nine-month period ending September 28, 2024, showed total net revenue of $1,386.0 million, up 3.8% from $1,335.4 million in the prior year.
Store Expansion and Operations
As of September 28, 2024, National Vision operated 1,231 stores, an increase from 1,173 stores at the end of the previous year, representing a growth rate of 4.9%. During the three months ended September 28, 2024, the company opened 18 new stores.
Revenue Breakdown
| Category | Three Months Ended September 28, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Net Product Sales | $363.2 | $354.6 |
| Net Sales of Services and Plans | $88.4 | $84.3 |
| Total Net Revenue | $451.5 | $438.8 |
Costs and Expenses
Costs applicable to revenue for the three months ended September 28, 2024, totaled $189.9 million, representing a 3.3% increase from $183.8 million in the previous year. The cost of goods sold as a percentage of net product sales was 29.3% for the quarter.
Operating Expenses
Selling, general, and administrative expenses (SG&A) for the three months ended September 28, 2024, amounted to $234.0 million, a 2.8% increase from the prior year. SG&A as a percentage of net revenue remained stable at 51.8%.
Income and Earnings
Net loss for the three months ended September 28, 2024 was $(8.5) million, compared to a net loss of $(73.8) million for the same period in 2023. The diluted earnings per share (EPS) from continuing operations was $(0.11).
Investment and Future Growth
As of September 28, 2024, National Vision reported cash flows from operating activities of $103.4 million, down from $153.3 million in the prior year. The company continues to invest in technology and infrastructure, indicating a commitment to growth and innovation in the optical retail market.
How National Vision Holdings, Inc. (EYE) Works
Business Overview
National Vision Holdings, Inc. operates in the optical retail sector, primarily focusing on providing prescription eyewear, contact lenses, and eye care services. The company operates through its brands, including America's Best Contacts & Eyeglasses and Eyeglass World.
Financial Performance
For the three months ended September 28, 2024, National Vision reported total net revenue of $451.5 million, a 2.9% increase from $438.8 million for the same period in 2023. For the nine months ended September 28, 2024, total net revenue reached $1,386.0 million, up 3.8% from $1,335.4 million in the prior year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Net Revenue | $451.5 million | $438.8 million | $1,386.0 million | $1,335.4 million |
| Net Product Sales | $363.2 million | $354.6 million | $1,113.2 million | $1,086.9 million |
| Net Sales of Services and Plans | $88.4 million | $84.3 million | $272.8 million | $248.5 million |
Revenue Breakdown
Net product sales comprised 80.4% of total net revenue for Q3 2024, slightly down from 81.4% in Q3 2023. Eyeglass sales contributed $8.4 million to the revenue increase, while contact lens sales added $5.5 million.
Cost Structure
Costs applicable to revenue for the three months ended September 28, 2024, were $189.9 million, increasing 3.3% from $183.8 million in the prior year. As a percentage of net revenue, these costs rose to 42.1% from 41.9% year-over-year.
| Cost Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Costs Applicable to Revenue | $189.9 million | $183.8 million |
| SG&A Expenses | $234.0 million | $227.5 million |
| Depreciation and Amortization | $22.7 million | $22.5 million |
| Asset Impairment | $13.7 million | $1.5 million |
Store Operations
As of September 28, 2024, National Vision operated 1,231 stores, up from 1,173 stores a year earlier. The company opened 18 new stores in Q3 2024 and closed three stores during the same period.
Profitability Metrics
Net income (loss) for Q3 2024 was $(8.5) million, compared to $(73.8) million in Q3 2023. The diluted earnings per share for Q3 2024 was $(0.11) compared to $(0.94) for Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $(8.5) million | $(73.8) million |
| Diluted EPS | $(0.11) | $(0.94) |
Debt and Financing
As of September 28, 2024, the company had long-term debt of $252.8 million, down from $450.8 million a year earlier. The interest expense for the nine months ended September 28, 2024, was $11.6 million, compared to $10.4 million in the previous year.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 28, 2024, was $103.4 million, while cash used for investing activities was $62.4 million. Cash used for financing activities totaled $109.4 million.
| Cash Flow Type | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $103.4 million | $153.3 million |
| Net Cash Used for Investing Activities | $(62.4) million | $(82.6) million |
| Net Cash Used for Financing Activities | $(109.4) million | $(34.2) million |
How National Vision Holdings, Inc. (EYE) Makes Money
Revenue Streams
National Vision Holdings, Inc. generates revenue primarily through two segments: net product sales and net sales of services and plans.
| Revenue Category | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Net Product Sales | $363.2 | $354.6 | $1,113.2 | $1,086.9 |
| Net Sales of Services and Plans | $88.4 | $84.3 | $272.8 | $248.5 |
| Total Net Revenue | $451.5 | $438.8 | $1,386.0 | $1,335.4 |
Product Sales Breakdown
Product sales accounted for approximately 80.4% of total revenue in Q3 2024, with eyeglass sales increasing by $8.4 million, or 3.0%, compared to the previous year.
Service Revenue
Net sales of services and plans increased by $4.1 million, or 4.9%, driven primarily by an increase in eye exam revenues of $3.9 million, or 7.3%, in Q3 2024.
Store Performance
As of September 28, 2024, National Vision operated 1,231 stores, reflecting a growth rate of 4.9% year-over-year. In the nine months ended September 28, 2024, the company opened 46 new America’s Best stores and 3 Eyeglass World stores.
Cost Structure
The total costs applicable to revenue for Q3 2024 were $189.9 million, which represents an increase of 3.3% from $183.8 million in Q3 2023. This increase was primarily driven by optometrist-related costs and other margin effects.
| Cost Category | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Costs of Products | $106.4 | $105.9 | $330.8 | $323.3 |
| Costs of Services and Plans | $83.5 | $78.0 | $248.2 | $227.0 |
| Total Costs Applicable to Revenue | $189.9 | $183.8 | $579.1 | $550.3 |
Operating Expenses
Selling, general and administrative (SG&A) expenses for Q3 2024 were $234.0 million, an increase of 2.8% from $227.5 million in Q3 2023. As a percentage of net revenue, SG&A remained stable at 51.8%.
Profitability Metrics
For the nine months ended September 28, 2024, the company reported an income from operations of $15.2 million compared to $36.9 million in the same period of 2023. The net income for Q3 2024 was a loss of $8.5 million, compared to a loss of $73.8 million in Q3 2023.
Comparable Store Sales Growth
Comparable store sales growth from continuing operations for the nine months ended September 28, 2024 was 1.7%, indicating a higher average ticket and an increase in customer transactions.
Debt and Interest Expenses
Interest expense net for the nine months ended September 28, 2024 was $11.6 million, an increase from $10.4 million for the nine months ended September 30, 2023.
Conclusion on Financial Health
As of September 28, 2024, National Vision's net cash provided by operating activities was $103.4 million, reflecting strong cash generation capabilities despite the net loss incurred during the quarter.
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Resources:
- National Vision Holdings, Inc. (EYE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of National Vision Holdings, Inc. (EYE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View National Vision Holdings, Inc. (EYE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.