National Vision (EYE) The 44th Annual William Blair Growth Stock Conference summary

Business overview and market positioning

• Operates 1,200 stores, primarily under America's Best Contacts and Eyeglasses, serving budget-conscious consumers.

• Achieved $2 billion in sales and $165 million in adjusted EBITDA, making it the second largest eyeglass provider in the U.S.

• Pre-COVID, delivered 72 consecutive quarters of positive comparable store sales, averaging 5% growth.

• Managed care (insurance) segment, about a third of business, has grown steadily and is less impacted by inflation.

• Recently opened the 1,000th America's Best store, with plans to expand to 1,850 locations.

Impact of COVID-19 and market disruptions

• COVID disrupted the predictable purchase cycle, as consumers delayed purchases after buying premium products in 2021.

• Inflation has disproportionately affected low-income customers, impacting demand.

• Industry-wide shortage of optometrists due to retirements and reduced work schedules post-COVID.

• Purchase cycle normalization is expected, driven by the biological need for vision correction.

Strategic adaptations and innovation

• Introduced remote practice, allowing doctors to conduct exams from home, addressing provider shortages.

• Remote care now in 550 stores, targeting 700 by year-end, with higher efficiency and potential for higher margins.

• Flexible work packages for optometrists have improved retention and recruitment, including hiring over 10% of the latest graduating class.

• Ongoing cost structure improvements following the end of the Walmart partnership.