National Vision profit doubles as managed care growth offsets traffic dips

National Vision Holdings (NASDAQ:EYE) delivered a sharp increase in profitability for the first quarter of 2026, as successful pricing initiatives and a shift toward managed care customers bolstered the company’s bottom line.

Net revenue for the period ended April 4, 2026, rose 6.6% to $543.9 million, supported by a 4.5% increase in adjusted comparable store sales.

The growth was primarily attributed to a higher average ticket—reflecting improved pricing power—and continued momentum within the managed care cohort, which helped mitigate a decline in traffic from self-pay customers.

The company’s earnings performance was particularly robust, with net income rising to $31.2 million, more than double the $14.2 million reported in the same quarter last year.

This resulted in a diluted earnings per share (EPS) of $0.38, up from $0.18.

Adjusted operating income climbed 34.4% to $55.5 million, while adjusted operating margins expanded to 10.2%, driven by disciplined cost management and a 300-basis-point reduction in selling, general, and administrative (SG&A) expenses as a percentage of revenue.

National Vision continued to refine its physical footprint during the quarter, opening eight new America’s Best locations while closing three.

Most notably, the company significantly deepened its reach in the military channel by adding 20 new Military stores, bringing its total store count to 1,274.

This expansion represents a 3% year-over-year increase in the company’s total retail network.

On the cost side, the company successfully leveraged optometrist-related expenses and executed pricing adjustments that largely offset a 10-basis-point increase in cost of goods sold.

SG&A expenses remained nearly flat at $256.1 million, as the company realized savings in payroll and advertising.

The firm’s balance sheet remained stable, ending the quarter with $67.9 million in cash and a total debt of $241.8 million.

With no borrowings under its $300 million revolving credit facility, National Vision maintains significant liquidity to fund its ongoing store expansion and technology investments.