National Vision(EYE) ZACKS·2025-02-19 13:21Core Insights - National Vision Holdings, Inc. (EYE) is implementing leadership changes, expanding exam capacity, and pursuing strategic initiatives to strengthen its foundation and growth potential in the optical retail industry [1][3] - The company's America's Best brand is experiencing revenue growth, benefiting from the strength of managed care [1][7] - However, National Vision faces challenges with a negative solvency position and rising expenses [1][10][11] Company Performance - Over the past year, National Vision's stock has declined by 40.6%, contrasting with a 0.1% decline in the industry and a 24% rise in the S&P 500 [2] - The company has a market capitalization of 4 million [3][4] - The company has moderated new store openings to 30-35 America's Best stores in fiscal 2025, focusing on existing operations and capital deployment for revenue growth [4] Industry Trends - The U.S. optical retail industry is showing consistent growth, driven by medical and recurring eye care purchases, with 82% of respondents using some form of vision correction [5][6] - A significant whitespace opportunity exists for National Vision, with the potential to open at least 2,500 additional stores, more than double its current count [4] Revenue Drivers - America's Best is a key revenue driver, leveraging managed care strength and introducing promotions like "two pairs for 81.2 million and short-term debt of 253 million [11] - The Zacks Consensus Estimate for 2024 earnings per share has increased by 4.1% to 52 cents, while revenue estimates suggest a 13.3% decline from the previous year, projected at $1.84 billion [12]