Thu, May 8, 12:38 PM (11 days ago)
**National Vision Holdings, Inc. (EYE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $510.3 million, up 5.7% from $482.8 million in Q1 2024. - **Net Income:** $14.2 million, an increase from $11.7 million in Q1 2024. - **Earnings per Share (EPS):** $0.18, up from $0.15 in Q1 2024. - **Operating Income:** $26.1 million, up from $23.4 million in Q1 2024. - **Cash Flow from Operations:** $32.2 million, up from $24.0 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 59.8% (Costs applicable to revenue: $205.2 million, down from 60.3% in Q1 2024). - **Operating Margin:** 5.1% (Operating expenses: $279.0 million, up from 4.9% in Q1 2024). - **Net Margin:** 2.8% (Net income: $14.2 million, up from 2.4% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** $32.2 million, up from $24.0 million in Q1 2024. - **Investing Cash Flow:** -$20.2 million, down from -$18.2 million in Q1 2024. - **Financing Cash Flow:** -$5.4 million, up from -$5.2 million in Q1 2024. **Earnings Changes:** - **Year-over-Year (YoY) Change in Net Income:** 21.1%. - **YoY Change in EPS:** 20.0%. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by 4.1% comparable store sales growth and new store openings, partially offset by store closures and unearned revenue timing. - **Margin Improvement:** Gross margin improved due to better product mix and pricing strategies, while operating margin expanded due to cost management. - **Cash Flow:** Operating cash flow increased due to higher net income and favorable working capital changes. **Trends and Uncertainties:** - **Economic Uncertainty:** Inflation, tariffs, and consumer spending patterns pose risks. - **Store Performance:** Some stores underperformed, leading to asset impairments. - **Debt Maturity:** $84.8 million in notes due in May 2025, with sufficient liquidity to cover. **Future Operations Impact:** - **Store Growth:** Plan to open 30-35 new stores in fiscal 2025. - **Cost Management:** Focus on optimizing cost structure and enhancing customer experience. - **Debt Management:** Monitor debt levels and consider refinancing or prepayment opportunities.