Executives from National Vision (NASDAQ:EYE) told investors at a Citi-hosted discussion that the company is sharpening its focus on managed vision care customers while maintaining its long-standing value positioning, citing early proof points in mix, transaction size, and customer satisfaction metrics.
Managed care mix rises as assortment and selling approach evolve
Management said National Vision built its business around value in optical and historically attracted many insured customers who sought to maximize benefits. However, executives said the company had not sufficiently tailored its assortment and in-store approach to help those managed care consumers fully use their plans.
Maintaining the value customer while redefining “value”
Asked whether the shift toward a more premium assortment risks alienating cash-pay customers, management said it remains committed to its entry-level value offer—specifically highlighting its ability to remain a destination for two pairs of eyewear for $95 including an eye exam. Executives framed the initiative as “rightsizing” the business model to the current customer portfolio rather than abandoning value.
They added that some cash-pay customers have opted into higher-priced products as premium options were introduced. As supporting indicators, the company said:
- Exam conversion (the rate at which customers purchase materials after an exam) has stayed flat even as the first price tier moved higher.
- NPS has been flat to positive during the transition.
On the cash-pay consumer environment, management noted that this customer group is more sensitive to macro headwinds and cited softness in the November–December period. Executives also pointed to a COVID-era purchase cycle disruption in 2021–2022 that pulled forward demand, which they believe is still normalizing for longer-cycle shoppers.
Share gains in exams and brand momentum at America’s Best
In discussing performance relative to the broader market, executives said the optical category was down 7% in eye exams last year, while National Vision reported +1% growth in exams. Management attributed part of that performance to a re-architected brand and communications strategy for America’s Best, saying unaided brand awareness reached the highest level in the company’s history and outpaced the category in the third and fourth quarters.
The company also said it has intentionally shifted marketing away from an “always-on” cash-pay promotional message toward more balanced communication that also targets managed care and other consumer segments, which management said contributed to some expected softness in cash-pay traffic while exams continued to outperform the category.
Eyeglass World gets dedicated focus and a brand refresh pipeline
Management reiterated support for operating two banners with distinct value propositions and said the company has refocused on Eyeglass World over the last year. Steps cited included creating a dedicated operating structure (without adding resources), improving execution through clearer ownership, and adjusting media strategy to better reflect the chain’s regional footprint by moving investment toward digital and streaming and away from linear TV.
Executives also said Eyeglass World has raised its assortment and brand profiles and transitioned roughly 50 stores from a sublease doctor arrangement to the company’s “friendly PC” doctor model to deliver a more consistent experience. Management said a new Eyeglass World brand design and go-to-market proposition is expected to be introduced in the back half of the year, leveraging the same agency partnership that supported the America’s Best work.
Remote care deployment, store growth pacing, margins, tariffs, and smart eyewear
On remote eye care (real-time exams supported by offsite doctors), management said the model has helped with doctor recruitment and coverage flexibility at stores. The company said remote care is deployed in more than 700 stores in states where the model is permitted and is now in essentially every store where the company wants it.
Regarding unit growth, executives said the company is in a deliberate period of slower openings—about 30–35 stores this year, similar to last year—versus a historical pace of 70–80, as it prioritizes investments in unified commerce. Management said it re-platformed CRM to Adobe last year and plans to move e-commerce sites onto Adobe’s platform within weeks, with the goal of enhancing unified commerce starting in the third quarter. The company said it operates in 38 states and sees additional white space, with a return to more aggressive store growth targeted for 2028.
On profitability, management said operating margin expanded 160 basis points in 2025. For 2026–2030, the company reiterated an expectation of at least 50–150 basis points of operating margin expansion, driven primarily by SG&A leverage. Executives said a review of SG&A identified $20 million of cost-out, split evenly between 2026 and 2027, and emphasized the actions are already contracted.
On tariffs, executives said guidance assumes some tariff impact but described exposure as “fairly low” as a percent of cost of goods due to supply chain diversification. They also highlighted that lens value-add is performed at four domestic U.S. labs, which they said is not subject to tariffs, and expressed confidence in navigating tariff impacts as they did last year.
Finally, management discussed smart eyewear, saying it launched Ray-Ban Meta in 50 stores in 2025 and expects availability to expand to about 1,200 locations. Executives said consumer adoption exceeded expectations and the products are among the fastest-turning SKUs in the assortment. They added that buyers often opt for more premium lens options, making these among the company’s most valuable transactions in dollar terms, while acknowledging the gross margin rate is not as high. Management said it aims to be an “agnostic destination” for smart eyewear over time and noted that training a large store workforce on the technology remains a key challenge as the category evolves.
About National Vision (NASDAQ:EYE)
National Vision Holdings, Inc is an American optical retailer specializing in accessible vision care and eyewear. The company operates under multiple retail banners, offering comprehensive eye health services and a wide range of optical products. Since its founding in the early 1990s, National Vision has focused on providing value-driven solutions, targeting underserved and price‐conscious consumer segments.
Through its primary retail brands—including America’s Best Contacts & Eyeglasses, Eyeglass World, Optical America and Vista Optical—National Vision delivers services such as comprehensive eye examinations, prescription eyewear, contact lenses, sunglasses and lens accessories.
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