DULUTH, Ga.—National Vision Holdings, Inc. (NASDAQ: EYE)  reported its financial results for the fourth quarter and fiscal year ended December 31, 2022, and provided its outlook for fiscal 2023. For the fourth quarter, revenue decreased 1.9 percent to $468.9 million compared to the fourth quarter of 2021. Comparable store sales growth was negative 5.7 percent for the quarter and adjusted comparable store sales growth was down 2.4 percent. For the fiscal year, the company reported net revenue decreased 3.6 percent to $2.01 billion compared to fiscal year 2021.

Comparable store sales growth was negative 7.5 percent for the year and adjusted comparable store sales growth was negative 7.6 percent. The company opened 80 new stores, closed four stores and ended the period with 1,354 stores. Overall, store count grew 5.9 percent from Jan. 1, 2022 to Dec. 31, 2022.

Reade Fahs, CEO,  stated, “We ended the year in line with our guidance expectations despite the challenging macroeconomic environment which negatively impacted the optical industry and especially our core value conscious uninsured customer base. These headwinds notwithstanding, we were encouraged by positive comps in our managed care business for both the quarter and the year as well as improvements in exam capacity in a number of areas.

"In addition, we successfully rolled out remote medicine and electronic health record capabilities in over 300 locations and delivered on our objective of opening 80 new stores in 2022.”

Fahs continued, “As we enter 2023, we are building on the progress in 2022, with our 2023 key strategic initiatives including continuing to expand exam capacity, furthering the digitization of our stores and corporate office, leveraging our omni-channel capabilities and capitalizing on our whitespace opportunity.
"As part of these initiatives, we are making significant enhancements to optometrist recruiting and retention initiatives, including increased scheduling options. We began piloting these changes in the fourth quarter and have seen early positive results."

"We plan to continue to expand our remote medicine and electronic health records capabilities to additional America’s Best stores in 2023," Fahs said. "While we expect the uncertain macro environment and increased inflationary pressures, along with the investments in these initiatives, to weigh on profitability in the near-term, we believe the actions we are taking will better position us for continued success and improved market position longer term.”

In the fourth quarter, National Vision opened 23 new stores and closed one store. Net income decreased 249 percent for the three-month period to a net loss of $9.3 million compared to the fourth quarter of 2021.

For the year, net income decreased 67.2 percent to  $42.1 million compared to fiscal year 2021.

The company’s cash balance was $229.4 million as of Dec. 31, 2022 and the company reported it had no borrowings under its $300.0 million first lien revolving credit facility, exclusive of letters of credit of $6.4 million.

Total debt was $567.5 million as of Dec. 31, 2022, consisting of outstanding first lien term loans, convertible senior notes and finance lease obligations, net of unamortized discounts. Cash flows from operating activities for 2022 were $119.2 million compared to $258.9 million for 2021.

Capital expenditures for 2022 totaled $113.5 million compared to $95.5 million for 2021.

In the fourth quarter, the company did not repurchase any shares of its common stock. The company has $50 million remaining under the current share repurchase authorization.

National Vision's fiscal 2023 outlook reflects current expected or estimated impacts related to macro-economic factors, including inflation, geopolitical instability and risks of recession, as well as constraints on exam capacity. However, the ultimate impact of these factors on the company’s financial outlook remains uncertain with dynamic market conditions and assumes no material deterioration to the company’s current business operations as a result of such factors.