National Vision (NASDAQ:EYE) reported higher third-quarter revenue and more than doubled its adjusted earnings per share as customers spent more on eyewear, offsetting a decline in traffic. The company also accelerated its store-opening plans for 2027, even as it revised its 2026 revenue outlook to account for continued pressure on lower-value transactions.
Revenue rose 4.8% to $511 million, while adjusted comparable store sales increased 2.8%. Average ticket grew 8.9%, but customer traffic fell 5.6%. Adjusted earnings per share rose to $0.30 from $0.13 a year earlier.
Higher-value sales lift earnings
Wilkes said most of the quarter’s ticket growth came from changes in customer and product mix rather than price increases on comparable products. National Vision is seeking to sell more premium frames and lenses and attract more customers using managed care benefits.
Comparable sales among managed care customers grew at a high-single-digit rate, supported by positive traffic and higher average ticket, according to Wilkes. He said the bottom quarter of transactions by ticket value accounted for a high-single-digit percentage of total sales and an even smaller share of gross profit.
Adjusted operating income increased to $37.1 million from $19.8 million, and adjusted operating margin expanded 320 basis points to 7.3%. CFO Chris Laden said the improvement was driven primarily by leverage on selling, general and administrative expenses, including more efficient store staffing and lower variable incentive compensation.
The quarter also included a one-time $4.7 million benefit from tariff refunds. Excluding that benefit, adjusted operating margin expanded 230 basis points. Laden said gross margin, excluding the refund, declined approximately 40 basis points as the company shifted toward higher-value products, partly offset by leverage of optometrist-related costs on higher exam revenue.
Traffic pressure shapes outlook
For 2026, National Vision now expects revenue of $2.02 billion to $2.04 billion and adjusted comparable sales growth of approximately 2% to 3%. It expects adjusted operating income of $119 million to $131 million and continues to forecast adjusted diluted earnings per share of $0.95 to $1.03.
Laden said the updated revenue outlook reflects pressure on lower-value transactions and incorporates fourth-quarter trends to date. The company expects fourth-quarter adjusted operating margin to decelerate as it enters a seasonally lower sales period and continues to invest in marketing and other initiatives.
Wilkes said sales trends slowed in September and October before showing some improvement in November. He said repeat customers’ purchase cycle had extended by about three weeks in the third quarter, compared with roughly two weeks in the second quarter. Laden said the fourth-quarter outlook assumes a further small extension, particularly for lower-value, largely self-pay transactions.
In response to an analyst’s question, Laden said he believed an improvement in the purchase cycle for lower-value transactions was needed for overall traffic to turn positive, although he could not predict when that might happen.
Store growth and brand investments
National Vision plans to open approximately 50 to 55 stores in 2027, about a year earlier than previously planned. For 2026, it expects approximately 30 new America’s Best and Eyeglass World openings and net growth of 17 stores, excluding 20 military locations added in the first quarter.
Wilkes said newer stores have generated higher average tickets and benefited from a more flexible labor model. The company recently opened a new America’s Best flagship format in Alpharetta, Georgia, designed to connect in-store, clinical and digital shopping experiences.
America’s Best posted adjusted comparable sales growth of 3.4% in the third quarter, while Eyeglass World’s comparable sales fell 2.5%. Wilkes described the work at Eyeglass World as a broader reset, including new branding, changes to its lab model and an updated e-commerce experience.
The company is also expanding its smart eyewear efforts. Wilkes said a fourth-quarter merchandising partnership with Meta includes co-branded advertising, in-store support and product education. National Vision plans to introduce live demonstrations in coming quarters.
National Vision ended the quarter with 1,285 stores. It repurchased approximately 1.1 million shares for $20 million during the period, and its board authorized a new $100 million repurchase program through December 2030, replacing the previous authorization.
About National Vision (NASDAQ:EYE)
National Vision Holdings, Inc. is a U.S. optical retailer that provides eye care services and sells eyewear. Its offerings include eye exams, prescription eyeglasses, contact lenses, sunglasses and related accessories. The company operates stores under brands including America’s Best Contacts & Eyeglasses and Eyeglass World. It also operates Vista Optical locations, including stores in select host locations. Founded in 1990, National Vision serves customers across the United States through its retail locations and online channels.
