Revenues benefited from new store sales and higher adjusted comparable store sales revenue, partly negated by impact (-0.9%) from the timing of unearned revenue.

Adjusted comparable store sales revenue rose 1.0% Y/Y, led by higher average tickets and customer transactions. 

Adjusted operating income declined 40.8% Y/Y to $16.4 million, with margin contracting 240 basis points Y/Y to 3.1%.

Adjusted EPS fell 19.1% Y/Y to $0.17, beating the consensus of $0.15. 

Store count grew 5.1% from July 2, 2022, to July 1, 2023, with 24 new stores opening and one closed in the quarter.

As of July 1, 2023, the cash balance stood at $254.6 million and debt at $565.7 million.

Operating cash flow, YTD, was $112.2 million vs. $88.0 million a year ago.

Repurchase: Year to date through July 1, 2023, National Vision bought back shares worth $25.0 million, with no share repurchases in Q2.

The company had $25.0 million shares remaining under its current repurchase authorization.

"As we look ahead, we remain focused on better serving our customers, enhancing our market position and driving long-term growth of our America's Best and Eyeglass World brands. While we continue to navigate near-term headwinds, we believe National Vision remains well positioned to achieve our full-year 2023 guidance and deliver sustainable profitable growth over the long term," said Reade Fahs, CEO.

The company anticipates adjusted EPS to be at or above the midpoint of the guided range.

Last month, National Vision disclosed ending its partnership with Walmart Inc. (NYSE: WMT) in 2024. 

Price Action: EYE shares closed higher by 0.77% at $20.95 on Wednesday.