63845RAB3 Filings — National Vision Holdings, Inc. - FilingSpy
63845RAB3
National Vision Holdings, Inc.
Could not find a ticker for this position, may be a filing error
A value-priced optical retailer running more than a thousand stores under the America's Best brand, plus Eyeglass World and Vista Optical, making eye exams and budget-friendly glasses and contacts accessible across the U.S. Founded in 1990 as a small Ohio operation that grew by opening vision centers inside Walmart, it later absorbed America's Best — which itself launched in 1978 on Chicago's Magnificent Mile after federal rules allowing eyewear price advertising changed. Its stock trades under the ticker "EYE."
Comparable sales growth slowed to 2.2% as a strategic mix shift toward higher-value eyeglasses pressured product margins.
growth decelerated to 2.2%, its slowest pace in four quarters. rose 2.5% to $498.8 million and climbed 42% to $12.4 million as a 200-basis-point reduction in SG&A expenses more than offset a 60-basis-point increase in costs applicable to revenue. The company is trading near-term for a richer product mix, betting that higher-value eyeglass offerings will strengthen the top line over time.
Key takeaways
Adjusted Growth slowed to 2.2% from 5.9% a year ago and 4.5% in the prior quarter, as a higher average ticket and managed care strength were partially offset by lower customer traffic.
Costs applicable to rose 60 to 41.8% of net revenue, driven by a strategic mix shift toward higher-value eyeglass offerings and deleverage of optometrist-related costs, which compressed by 0.6 points to 58.2%.
SG&A expenses fell 200 to 48.8% of net , primarily from lower associate-related expenses and reduced advertising spend, which was the main driver of the 42% increase in to $12.4 million.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net revenue rose 2.5% to $498.8M, driven by new stores and pricing, while SG&A leverage boosted net income 42% to $12.4M.
⌄
Total net grew 2.5% to $498.8M, with net product sales up 2.2% on pricing and product mix initiatives and net sales of services and plans up 4.2% on higher eye exam revenues.
dropped 85% to $8.1 million, as higher tied to the premium product mix and other changes absorbed cash, while turned negative at -$14.1 million.
The company repurchased 1.2 million shares for $20 million under a new $50 million authorization and recorded a $2.5 million charge related to Eyeglass World lab optimization.
Variable-rate debt exposure stood at $131.0 million after accounting for a $100.0 million interest rate swap; a 1.0% rate increase would add approximately $1.3 million to annual .
What changed
Adjusted Growth of 2.2% fell short of the 4.5% reported in Q1 FY2026 and the 5.9% in Q2 FY2025, confirming the deceleration flagged as a watch item last quarter as the signature-offer price increase fully annualizes.
The 60-basis-point increase in costs applicable to reversed the improvement seen in recent quarters, as the eyeglass mix shift toward higher-value offerings—previously a margin —now pressured product margins, a risk noted in the Q1 FY2026 watch items.
SG&A of 200 accelerated from the 300-basis-point improvement in Q1 FY2026, suggesting the fleet optimization savings flagged in prior filings are beginning to materialize in lower associate-related expenses.
swung from $42.4 million a year ago to -$14.1 million, a sharp reversal from the $44.1 million generated in Q1 FY2026, driven by investments in that were not flagged in prior watch items.
What to watch
Adjusted Growth in Q3 FY2026: whether the 2.2% pace represents a trough or continues to decelerate as the company laps the 7.7% growth from Q3 FY2025.
trajectory: whether the 60-basis-point increase in costs applicable to from the strategic eyeglass mix shift is a one-quarter reset or the start of sustained margin pressure, and whether the higher-value mix eventually drives enough revenue growth to offset it.
recovery: whether the investment in premium reverses in the second half of FY2026 or signals a structural increase in inventory needs tied to the new product mix.
Eyeglass World lab optimization: the scope and cost of the lab changes behind the $2.5 million charge, and whether further charges or restructuring costs are likely as the fleet optimization plan nears its end-of-2026 target.
was 2.2%, reflecting a higher average ticket and managed care strength, partially offset by lower customer traffic; America's Best led with 2.5% growth.
Costs applicable to rose 60 to 41.8% of net revenue, driven by a strategic mix shift toward higher-value eyeglass offerings and deleverage of optometrist-related costs.
SG&A decreased 200 to 48.8% of net , primarily due to lower associate-related expenses and reduced advertising spend, contributing to a 42% increase in to $12.4M.
The company opened 9 new America's Best stores, closed 2, and recognized a $2.5M for Eyeglass World lab optimization; it also repurchased 1.2M shares for $20M under a new $50M authorization.
Liquidity remains solid with $36.0M in cash and $293.3M available under revolving loans; decreased to $69.8M due to changes, including higher for premium mix.
Quantitative and Qualitative Disclosures About Market Risk
A significant portion of our debt bears interest at variable rates. If market interest rates increase, the interest rate on our variable rate debt will increase and will create higher debt service requirements, which would adversely affect our cash flow and could adversely impac…
⌄
A significant portion of our debt bears interest at variable rates. If market interest rates increase, the interest rate on our variable rate debt will increase and will create higher debt service requirements, which would adversely affect our cash flow and could adversely impact our results of operations. In December 2025, we entered into an interest rate swap agreement to help manage interest rate exposure by economically converting a portion of our variable-rate debt to fixed-rate debt. Our interest rate swap is intended to mitigate some of the effects of increases in interest rates. See Note 5. “Interest Rate Derivatives” to our condensed consolidated financial statements for more information on our interest rate swap.
As of July 4, 2026, our total borrowing consisted of $231.0 million of term loan borrowings subject to variable interest rates with a weighted average borrowing rate of 5.2%. After inclusion of the notional amount of $100.0 million of interest rate swaps fixing a portion of the variable rate debt, $131.0 million is subject to variable rates. Assuming an increase to market rates of 1.0% as of July 4, 2026, we would incur an annual increase to interest expense of approximately $1.3 million related to debt subject to variable rates. For more information about quantitative and qualitative disclosures about market risk, please see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” in Part II. of the 2025 Annual Report on Form 10-K.
See Note 7. “Commitments and Contingencies” in our condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q for information regarding certain legal proceedings in which we are involved, which discussion is incorporated herein by reference.
⌄
See Note 7. “Commitments and Contingencies” in our condensed consolidated financial statements included in Part I. Item 1. of this Form 10-Q for information regarding certain legal proceedings in which we are involved, which discussion is incorporated herein by reference.
For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussed in Part I. Item 1A. “Risk Factors” in our 2025 Annual Report on Form 10-K. There have been no material changes to the risk f…
⌄
For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussed in Part I. Item 1A. “Risk Factors” in our 2025 Annual Report on Form 10-K. There have been no material changes to the risk factors described in our 2025 Annual Report on Form 10-K.