National Vision Holdings, Inc. Reports Third Quarter 2021 Financial Results; Updates


DULUTH, Ga.–()–National Vision Holdings, Inc. (NASDAQ: EYE) (“National Vision” or the “Company”) today reported its financial results for the third quarter ended October 2, 2021.

Given the impact of COVID-related store closures last year, consistent with our second quarter earnings release, this release includes a comparison of fiscal 2021 results to fiscal 2019 pre-COVID results, in addition to a condensed comparison to fiscal 2020. For a complete discussion of fiscal 2021 results as compared to fiscal 2020, please see our Quarterly Report on Form 10-Q for the quarter ended October 2, 2021 filed with the Securities and Exchange Commission.

“We are pleased with our third quarter results, as sales remained healthy with total sales up nearly 20% and comparable store sales up over 13% on a 2-year basis against 2019,” stated Reade Fahs, chief executive officer. “Additionally, despite Delta variant concerns and a decline from an elevated average ticket last year, we delivered a slight comp increase against 2020 on continued growth in customer transactions. All credit goes to the dedicated patient and customer care of the 2,000-plus optometrists and over 13,000 associates at National Vision who continue to successfully navigate the many challenges this environment throws our way.”

Mr. Fahs continued, “During the quarter, we opened 14 stores and continue to be excited about our long-term opportunities for expansion and market share growth. Additionally, given our strong cash flows, we made a voluntary $50 million prepayment under our credit agreement earlier this week and today announced our board approved a $50 million stock repurchase program. Looking ahead, as sales trends and customer demand continue to normalize from record levels during the COVID-19 pandemic, we believe we remain in a position of strength to continue to deliver sustainable growth.”

Adjusted Comparable Store Sales Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Diluted EPS, Adjusted Operating Margin, Adjusted EBITDA Margin, and EBITDA are not measures recognized under generally accepted accounting principles (“GAAP”). Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP to GAAP Financial Measures” below for more information.

Third Quarter 2021 Summary compared to Third Quarter 2019

  • Net revenue increased 19.9% to $518.0 million compared to the third quarter of 2019.
  • Net revenue was positively impacted by 1.5% due to the timing of unearned revenue.
  • Comparable store sales growth was 15.7% and Adjusted Comparable Store Sales Growth was 13.3%.
  • During the third quarter of 2021, the Company opened 14 new stores, closed one store, and ended the quarter with 1,262 stores. Overall, store count grew 10.2% from September 28, 2019 to October 2, 2021.
  • Costs applicable to revenue increased 10.7% to $226.5 million compared to the third quarter of 2019. As a percentage of net revenue, costs applicable to revenue decreased 360 basis points to 43.7% compared to the third quarter of 2019. This decrease as a percentage of net revenue was primarily driven by lower growth in optometrist-related costs, increased eyeglass mix and higher eyeglass margin.
  • SG&A increased 14.7% to $218.2 million compared to the third quarter of 2019. As a percentage of net revenue, SG&A decreased 200 basis points to 42.1% compared to the third quarter of 2019. This decrease as a percentage of net revenue was primarily driven by the leverage of corporate overhead and payroll expenses, lower stock compensation expense, and lower performance-based incentive compensation, partially offset by higher advertising investment.
  • Net income increased 3,339% to $41.0 million compared to the third quarter of 2019. The net change in margin on unearned revenue benefited Adjusted Diluted EPS by $0.04.
  • Diluted earnings per share increased 2,976% to $0.45 compared to the third quarter of 2019. Adjusted Diluted EPS increased 134% to $0.38 compared to the third quarter of 2019.
  • Adjusted Operating Income increased 110% to $54.7 million compared to the third quarter of 2019. Adjusted Operating Margin increased 460 basis points to 10.6% compared to the third quarter of 2019. The net change in margin on unearned revenue benefited Adjusted Operating Income by $5.1 million.

Third Quarter 2021 Summary compared to Third Quarter 2020 (condensed)

  • Net revenue increased 6.7% to $518.0 million compared to the third quarter of 2020.
  • Net revenue was positively impacted by 1.3% due to the timing of unearned revenue.
  • Comparable store sales growth was 3.4% and Adjusted Comparable Store Sales Growth was 0.2%.
  • The Company opened 14 new stores, closed one store, and ended the quarter with 1,262 stores. Overall, store count grew 5.1% from September 26, 2020 to October 2, 2021.
  • Net income increased 16.2% to $41.0 million compared to the third quarter of 2020.
  • Diluted earnings per share increased 6.7% to $0.45 compared to the third quarter of 2020. Adjusted Diluted EPS decreased 28.5% to $0.38 compared to the third quarter of 2020. The net change in margin on unearned revenue benefited Adjusted Diluted EPS by $0.04.
  • Adjusted Operating Income decreased 19.2% to $54.7 million compared to the third quarter of 2020. Adjusted Operating Margin decreased 340 basis points to 10.6% compared to the third quarter of 2020. The net change in margin on unearned revenue benefited Adjusted Operating Income by $4.9 million.

Nine-Month Period 2021 Summary compared to Nine-Month Period 2019

  • Net revenue increased 21.1% to $1.6 billion compared to the same period of 2019.
  • The impact from the timing of unearned revenue on net revenue and profitability was immaterial.
  • Comparable store sales growth was 15.5% and Adjusted Comparable Store Sales Growth was 15.6%.
  • The Company opened 59 new stores, closed two stores, and ended the period with 1,262 stores.
  • Costs applicable to revenue increased 11.0% to $687.1 million compared to the same period of 2019. As a percentage of net revenue, costs applicable to revenue decreased 390 basis points to 42.9% compared to the same period of 2019. This decrease as a percentage of net revenue was primarily driven by higher eyeglass margin, a higher mix of exam sales, and a lower growth in optometrist-related costs.
  • SG&A increased 19.3% to $676.0 million compared to the same period of 2019. As a percentage of net revenue, SG&A decreased 60 basis points at 42.2% compared to the same period of 2019. The decrease as a percentage of net revenue was primarily driven by the leverage of corporate overhead and occupancy expenses, partially offset by higher performance-based incentive compensation.
  • Net income increased 323% to $122.0 million compared to the same period of 2019.
  • Diluted earnings per share increased 279% to $1.34 compared to the same period of 2019. Adjusted Diluted EPS increased 106% to $1.35 compared to the same period of 2019.
  • Adjusted Operating Income increased 92.2% to $188.0 million compared to the same period of 2019. Adjusted Operating Margin increased 430 basis points to 11.7% compared to the same period of 2019.

Nine-Month Period 2021 Summary compared to Nine-Month Period 2020 (condensed)

  • Net revenue increased 31.8% to $1.6 billion compared to the same period of 2020.
  • Net revenue was positively impacted by 1.2% due to the timing of unearned revenue.
  • Comparable store sales growth was 30.3% and Adjusted Comparable Store Sales Growth was 31.1%.
  • Net income increased 10,086% to $122.0 million compared to the same period of 2020.
  • Diluted earnings per share increased 9,168% to $1.34 compared to the same period of 2020. Adjusted Diluted EPS increased 221% to $1.35 compared to the same period of 2020. The net change in margin on unearned revenue benefited Adjusted Diluted EPS by $0.10.
  • Adjusted Operating Income increased 163% to $188.0 millioncompared to the same period of 2020. Adjusted…



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