EYE Q2 Deep Dive: Brand Revamp, Pricing Actions, and Managed Care Drive Results

August 12, 2025 at 03:06 AM EDT

EYE Cover Image

Optical retailer National Vision (NYSE: EYE) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 7.7% year on year to $486.4 million. The company’s full-year revenue guidance of $1.95 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $0.18 per share was 31.1% above analysts’ consensus estimates.

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National Vision (EYE) Q2 CY2025 Highlights:

Revenue: $486.4 million vs analyst estimates of $469.8 million (7.7% year-on-year growth, 3.5% beat)
Adjusted EPS: $0.18 vs analyst estimates of $0.14 (31.1% beat)
Adjusted EBITDA: $46.17 million vs analyst estimates of $40.73 million (9.5% margin, 13.4% beat)
The company slightly lifted its revenue guidance for the full year to $1.95 billion at the midpoint from $1.94 billion
Management raised its full-year Adjusted EPS guidance to $0.66 at the midpoint, a 4.8% increase
Operating Margin: 3.4%, up from 0.1% in the same quarter last year
Locations: 1,240 at quarter end, up from 1,216 in the same quarter last year
Same-Store Sales rose 5.9% year on year (2.4% in the same quarter last year)
Market Capitalization: $1.80 billion

StockStory’s Take

National Vision’s second quarter results received a negative market reaction, despite the company surpassing Wall Street expectations for revenue and non-GAAP earnings. Management attributed these results to ongoing pricing actions, improvements in product assortment, and initiatives aimed at modernizing the customer experience. CEO Alex Wilkes highlighted the “significant transformation and accelerated growth” underway, emphasizing that refreshed branding and strategic investments in digital capabilities have started to show tangible benefits, particularly in managed care and product mix.

Looking forward, the company’s updated guidance reflects confidence in ongoing digital and marketing initiatives, though management remains cautious given macroeconomic uncertainty. Wilkes noted that the launch of a new CRM system and a revitalized America’s Best brand are expected to enhance personalized marketing and customer retention. CFO Chris Laden stated that while prior pricing actions are expected to support margins, the company is not assuming additional price increases in its outlook until more data becomes available. Management believes these efforts will help sustain growth while maintaining operational discipline.

Key Insights from Management’s Remarks

Management cited higher average ticket size, strategic pricing, and a revitalized brand as primary contributors to the quarter’s outperformance versus expectations, alongside ongoing managed care momentum and cost discipline.

Managed care expansion: Growth in managed care customers was a key contributor, with the cohort showing low double-digit comp growth and higher average transaction sizes compared to cash pay customers. Management is targeting a 50% mix for managed care, viewing it as a long-term growth lever.
Product mix and premiumization: The introduction of new designer frames and an updated assortment led more customers—both managed care and cash pay—to trade up to higher-priced products. Wilkes reported that premium collections like Lam and Ted Baker are “turning at above average rates,” validating the company’s upmarket shift.
Brand and marketing transformation: The launch of refreshed branding for National Vision and America’s Best is central to the company’s strategy. Management is investing in digital marketing and a new CRM platform to drive more targeted, personalized outreach, aiming to attract higher-income demographics and improve customer retention.
Store fleet optimization: The company continued to open new locations while closing underperforming stores, focusing on profitability and alignment with strategic priorities. Laden emphasized that closures were based on profitability, doctor availability, and demographic shifts, with no significant changes expected in the pace of closures.
Eyeglass World improvements: Leadership changes and a new doctor model in Florida drove improved performance at Eyeglass World, which saw its best first-half results since 2021. Management plans further modernization and strategic investments in this banner moving forward.

Drivers of Future Performance

National Vision’s outlook is driven by expanded managed care penetration, enhanced digital marketing, and the impact of recent pricing and assortment changes, balanced by macroeconomic uncertainty.

Digital and CRM rollout: The company expects its new CRM platform and digital marketing initiatives to drive improved customer engagement and retention, particularly among higher-income and managed care segments. Management will monitor the effectiveness of these tools before incorporating further benefits into guidance.
Margin focus and cost optimization: Management is prioritizing operating margin expansion through ongoing assortment upgrades, efficiency initiatives, and partnership with Accenture on cost optimization. Guidance incorporates expected gross margin gains but remains cautious on further pricing actions until more consumer data is available.
Macroeconomic caution and consumer mix: Management is taking a prudent approach to guidance for the second half, citing ongoing macroeconomic noise and uncertainty about consumer demand. The company does not expect significant changes in traffic trends and is closely watching the evolving tariff environment, which is now expected to have a minimal impact due to regulatory changes and mitigation strategies.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the impact of the new CRM and digital marketing initiatives on customer acquisition and retention, (2) further expansion and performance of managed care and premium product segments, and (3) the pace and effectiveness of store optimization efforts, including closures and new openings. Progress on cost control initiatives and the ability to drive margin expansion will also be key markers.

National Vision currently trades at $22.79, down from $24.83 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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