National Vision (EYE) Jefferies 2024 Global Healthcare Conference summary

Business overview and market positioning

• Focuses on providing affordable eye care and eyewear to budget-conscious consumers, with America's Best as the largest brand among 1,200 retail locations.

• Bundles eye exams with glasses and contact lenses, offering entry prices as low as two pairs for $79 with a free exam.

• Managed care/insured business accounts for about 35% of revenue and is performing well, less affected by macroeconomic pressures.

• Maintains one of the largest employed networks of optometrists in the U.S., with over 2,000 optometrists.

• Aims to leverage technology and partnerships to expand healthcare services beyond vision care.

Impact of COVID-19 and operational adaptation

• COVID disrupted the purchase cycle and led to a shortage of optometrists, impacting business predictability.

• Customers initially spent more post-COVID but are now more financially constrained due to inflation.

• Introduced remote eye exams, now over 10% of exams in enabled states, to address doctor shortages and improve efficiency.

• Continues to adapt cost structure and operations to maintain profitability despite challenges.

Virtual eye exam strategy and technology

• Remote exams allow optometrists to conduct live, synchronous exams from home using digital equipment in stores.

• Texas recently approved remote exams, providing a significant growth opportunity as it is the state with the most stores.

• Remote exams increase exam availability, reduce downtime, and are seen as incremental revenue drivers.

• Ongoing digitization of stores and back office to improve efficiency and cost leverage.

• Remote exams expected to drive same-store growth and margin improvement as the initiative matures.