On February 27, 2024, National Vision Holdings Inc (EYE, Financial) released its 8-K filing, disclosing its financial results for the fourth quarter and the full fiscal year of 2023. The optical retailer, known for its brands such as America's Best and Eyeglass World, reported an 8.0% increase in net revenue for Q4 2023 compared to Q4 2022, reaching $506.4 million. However, the company faced a net loss of $(16.0) million for the quarter, attributed to expenses related to the termination of its partnership with Walmart.
Fiscal 2023 saw a 6.0% increase in net revenue to $2.13 billion, with comparable store sales growth of 3.1%. Despite the revenue growth, National Vision reported a net loss of $(65.9) million for the year, significantly impacted by non-cash impairment charges and expenses from the Walmart partnership termination. Adjusted operating income and adjusted diluted EPS also saw declines, indicating challenges in profitability.
The company's balance sheet reflects a cash balance of $149.9 million as of December 30, 2023, with total debt standing at $461.3 million. Cash flows from operating activities were notably higher at $173.0 million for fiscal 2023 compared to $119.2 million for the previous year.
CEO Reade Fahs commented on the results, highlighting the company's operational execution and managed care business strength. He also noted the cost and pricing actions expected to benefit financial performance in 2024. The company's outlook for fiscal 2024 includes new store openings and an adjusted comparable store sales growth of 2.0% to 4.0%, with net revenue projected between $1.965 to $2.005 billion.
As National Vision navigates the post-Walmart partnership landscape, it has initiated cost savings and pricing strategies to offset the profitability gap. The company's share repurchase program and the opening of new stores are part of its efforts to drive long-term growth.
Investors and analysts will be watching closely to see how these strategies unfold in the coming fiscal year, as National Vision aims to make quality eye care and eyewear more affordable and accessible.
Explore the complete 8-K earnings release (here) from National Vision Holdings Inc for further details.
