What changed in this filing

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Item 1. Business

2025-02-26 compared with 2024-02-27 · 108 added, 122 removed, 341 unchanged (40% of the section changed)

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(“NVI”), and NVI’s subsidiaries.

Our website is www.nationalvision.com .

Investors can obtain copies free of charge of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments to these reports, as soon as reasonably practicable after we electronically file such material with, or furnish such material to, the SEC.

You may access these documents on the “Investors” section of our website.

The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at the following address:

http:// www.sec.gov.

We also make available free of charge on our website our Corporate Governance Guidelines, our Code of Conduct and the charters of our Audit Committee, our Compensation Committee and our Nominating and Corporate Governance Committee.

The information posted to our website is not incorporated into this Form 10-K or any other report we file with the SEC.

We had one reportable segment as of December 28, 2024:

our Owned & Host segment.

Our Owned & Host segment includes our two owned brands, America’s Best Contacts and Eyeglasses (“America’s Best”) and Eyeglass World, as well as our Host brands, Vista Optical locations within select Fred Meyer stores and Vista Optical locations on select military bases.

“Segment Reporting” for more information.

We are one of the largest optical retailers in the United States (“U.S.”) and a leader in the attractive value segment of the U.S.

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Our mission is to make quality eye care and eyewear affordable and accessible to all Americans.

We achieve this by providing eye exams, eyeglasses and contact lenses to value seeking and lower income consumers.

We deliver exceptional value and convenience to our customers, with an opening price point that strives to be among the lowest in the industry.

We reach our customers through a diverse portfolio of 1,413 retail stores across five brands and 13 consumer websites as of December 30, 2023, our 2023 fiscal year end.

Our Corporate History

Through our corporate predecessors, we commenced operations in 1990.

In 2005, private equity funds managed by Berkshire Partners LLC (“Berkshire”) acquired us as well as the entity that owned America’s Best Contacts and Eyeglasses (“America’s Best”) stores, merging our operations.

We acquired the Eyeglass World store chain in 2009 and, after a multi-year partnership, we acquired Arlington Contact Lens Service, Inc.

(“AC Lens”) in 2011 to bolster our e-commerce platform.

In March 2014, we were acquired (the “KKR Acquisition”) by affiliates of KKR & Co.

In October 2017, we completed the initial public offering of our common stock (the “IPO”).

By August 2019, each of KKR and Berkshire had sold their remaining holdings of our common stock.

We achieve this by providing eye exams, eyeglasses and contact lenses to value-seeking consumers.

We deliver exceptional value and convenience to our customers, with attractive price points that provide value for a range of consumers.

We reach our customers through a diverse portfolio of 1,240 retail stores across four brands and multiple consumer websites as of December 28, 2024, our 2024 fiscal year end.

Our Business Model

Our history of profitable growth is founded on a commitment to providing exceptional value and convenience to customers.

Our disciplined approach to new store openings, combined with our attractive store economics, has led to strong returns on investment.

The following chart depicts our new store growth:

Represents stores in operations across all five company retail brands at the end of each fiscal year.

The fundamentals of our model are described below:

• Differentiated and Defensible Value Proposition .

We believe our success is driven by our value-based offerings, convenient locations, broad assortment of branded and private label merchandise and the high levels of in-store service provided by our well-trained and passionate store associates and vision care professionals.

Key characteristics of our model are described below:

• Broad-based and Differentiated Value Proposition .

We believe our success is primarily driven by our value-based offerings, convenient locations, broad assortment of branded and private label merchandise and the high levels of in-store service provided by our well-trained and passionate store associates and vision care professionals.

We believe our bundled offers, including two pairs of eyeglasses plus an eye exam for $89.95 at America’s Best and two-pairs of eyeglasses for $99 at Eyeglass World, are among the lowest price offerings of any national chain.

At the same time, we have found that our value proposition appeals to a broad group of value-seeking consumers and, as such, we have an opportunity to target consumers across a wide range of income demographics.

Our ability to utilize national advertising for America’s Best allows us to communicate this value proposition to a meaningfully greater number of current and potential customers.

We believe that our value proposition will continue to drive comparable store sales growth as we attract new customers and increase loyalty with existing customers.

We believe that our value proposition will continue to drive comparable store sales growth as we expand our target market, attract new customers and increase loyalty with existing customers.

• Recurring Revenue Characteristics .

Eye care purchases are predominantly a medical necessity and are therefore considered non-discretionary in nature.

While there are ranges of customer behaviors based on demographics and other factors, it is estimated that optical consumers typically replace their eyeglasses every two to three years and their contact lenses every six to 12 months, reflecting the predictability of these recurring purchase behaviors.

While there are ranges of customer behaviors based on demographics and other factors, we estimate that our customers typically replace their eyeglasses every two to three years and their contact lenses every six to 12 months, reflecting the predictability of these recurring purchase behaviors.

This is further demonstrated by the customer mix of our mature stores, with existing customers representing 67% of total customers in 2024 and new customers representing the remaining 33% of total customers in 2024.

• Attractive Store Economics .

Since 2006, we have opened 1,000 stores in the aggregate, including 970 stores under our America’s Best and Eyeglass World retail brands.

• Target Attractive Store Economics .

Since 2006, we have opened over 1,000 stores in the aggregate, including 1,039 stores under our America’s Best and Eyeglass World retail brands.

Our store economics are based on low capital investment, steady ramping of sales in new locations, low operating costs and consistent sales volume and earnings growth in mature stores, which result in attractive returns on capital.

By consistently replicating the key characteristics of our store model, we execute a formula-based approach to opening new stores and managing existing stores, which has delivered predictable store performance across vintages, diverse geographies, and new and existing markets.

Our new store model targets a store size between 3,500 to 4,500 square feet and an average new store cash investment of approximately $0.4 million to $0.6 million, in furniture, fixtures, leaseholds and equipment for new stores, net of tenant incentives.

By consistently replicating the key characteristics of our store model, we have executed a formula-based approach to opening new stores and managing existing stores, which has historically delivered predictable store performance across vintages, diverse geographies, and new and existing markets.

Our new store model generally targets a store size between 2,500 to 4,500 square feet and an average new store cash investment of approximately $0.4 million to $0.6 million, in furniture, fixtures, leaseholds and equipment for new stores, net of tenant incentives.

Our new store model targets sales in the fifth year of operation in the range of $1.5 million to $1.7 million, with at least 55% of year five sales targeted in the first full year of operation.

Our new store model targets vary for America’s Best and Eyeglass World stores to reflect differences by brand, markets and geography.

Our new store model targets vary for America’s Best and Eyeglass World stores to reflect

differences by brand, markets and geography.

The majority of our owned stores have achieved profitability during the second year of operation and have paid back invested capital in three to five years.

During fiscal 2024, we undertook a comprehensive review of our store portfolio and announced plans to take action on 43 stores, including closing 39 stores by the end of fiscal 2026 and converting four Eyeglass World stores to America’s Best by the end of fiscal 2024.

At that time, we also announced plans to temporarily moderate new store openings in 2025 to 30-35 new stores, after which time we expect to return to our more recent store opening cadence as strategic initiatives begin to take hold.

We believe that the combination of these actions can be expected to provide us with increased flexibility to invest in existing operations and deploy capital to initiatives that will drive increased revenue and improved profitability, and allow us to increase investments in enhancing the overall patient and customer experience in our existing stores.

• Grow Our Store Base.

We believe that we continue to have significant expansion opportunities in the U.S.

We have adopted a disciplined expansion strategy designed to leverage the strengths of our compelling and distinct value proposition and recognized America’s Best and Eyeglass World brand names to develop new stores successfully in an array of markets that are primed for growth, including new, existing, small and large markets.

We believe that we continue to have significant whitespace opportunity for continued growth.

We have an established partnership with a third-party real estate data analytics firm to evaluate potential new America’s Best and Eyeglass World stores.

The analysis suggests that we can grow America’s Best to at least 1,300 stores and Eyeglass World to at least 850 stores, inclusive of those already open.

We believe that these two brands can accordingly grow from 1,105 stores as of December 30, 2023 to a total of at least 2,150 stores in the long-term.

The following table provides an overview of our portfolio of brands, excluding the Legacy segment stores and websites that we operated as of December 30, 2023 but no longer operate or will cease to operate in 2024 (see “Our Partner Brands” below for more information):

Overview of Our Brands and Omni-channel & E-commerce Platform

The analysis, as updated in early 2024, shows that our total whitespace opportunity is believed to be at least 2,500 stores, more than double the existing store count across our brands.

Our disciplined approach to new store openings, combined with our attractive store economics, has led to strong returns on investment and we believe that our decision to temporarily moderate the pace of new store openings will allow us to continue this trend over the long term.

The following chart depicts our store count over time:

Effective as of February 23, 2024, we completed the transition of 229 Walmart Vision Center stores in connection with the termination of our Walmart partnership.

The table above presents stores in operations across all retail brands at the end of each fiscal year, excluding Walmart Vision Center stores.

The following table provides an overview of our portfolio of brands (see “Our Host Brands” below for more information):

Overview of Our Brands and Omni-channel & E-commerce Platforms

Owned & Host Brands

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Eyeglass World locations offer eye exams, primarily from independent optometrists and optometrists employed by independent professional corporations or similar entities and have on-site laboratories that enable stores to quickly fulfill customer orders and make repairs on site.

Lens orders that are not completed in store are

completed by our centralized laboratory network.

Lens orders that are not completed in store are completed by our centralized laboratory network.

These stores are primarily located in freestanding or in-line locations near high-foot-traffic shopping centers.

Our Partner Brands.

We have two continuing partner brands consisting of 54 Vista Optical locations on military bases and 29 Vista Optical locations within select Fred Meyer stores as of December 30, 2023.

Our partner brands all compete within the value segment of the U.S.

Our Host Brands.

We have two Host brands consisting of 53 Vista Optical locations on military bases and 29 Vista Optical locations within select Fred Meyer stores as of December 28, 2024.

Our Host brands compete within the value segment of the U.S.

optical retail industry.

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These brands also utilize our centralized laboratories and provide eye exams principally by independent optometrists in nearly all locations.

As of December 30, 2023, our partner brands also included the operation of 225 Vision Centers in select Walmart stores through the Management & Services Agreement by and between NVI and Walmart Inc.

(“Walmart”), dated as of May 1, 2012 (as amended, supplemented or otherwise modified from time to time, the “Walmart MSA”).

On July 20, 2023, we received a notice of non-renewal from Walmart of the Walmart MSA (the “MSA Termination”).

In accordance with the terms of the Walmart MSA and the notice, the agreement terminated on February 23, 2024 and we no longer operate Vision Centers for Walmart.

Our Omni-Channel and E-Commerce Platforms.

We offer our customers an engaging digital shopping experience through an established platform of omni-channel store websites, and dedicated e-commerce consumer websites.

We offer our customers an engaging digital shopping experience through an established platform of omni-channel store websites, and our dedicated e-commerce consumer website,

DiscountContacts.com.

Our omni-channel store websites augment our America’s Best, Eyeglass World and Vista Optical in military brands and provide a customer experience that extends across our in-store, mobile and e-commerce channels.

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Our omni-channel offerings work in concert with these brands to enhance the overall quality of the customer experience.

As of December 30, 2023, our dedicated e-commerce websites were managed by our subsidiary, AC Lens.

AC Lens has historically operated proprietary, branded websites and operated and provided support services for third-party websites owned by other companies, including Walmart and Sam’s Club.

Following the receipt of the MSA Termination, AC Lens delivered notices of non-renewal of the agreements it has with Walmart and Sam’s Club regarding wholesale contact lenses distribution and related services, such that these agreements will terminate as of June 30, 2024, unless an earlier date is agreed by the parties and the Company will wind down its remaining AC Lens operations, including the closure of its Ohio distribution center, which largely supported the wholesale distribution and e-commerce contact lens services that the Company provided to Walmart and Sam’s Club.

Our e-commerce platform related to websites associated with our store brands will continue to operate, as will certain websites historically managed by AC Lens.

We are planning to transition the order fulfillment functions currently handled by AC Lens to a third-party vendor.

In the aggregate, sales from our omni-channel and e-commerce platforms, which include “buy-in-store and ship-to-home” transactions, represented approximately 7.3% and 10.1% of net revenue in fiscal year 2024 and 2023, respectively.

Reportable segments:

We had two reportable segments as of December 30, 2023:

our Owned & Host segment and our Legacy segment.

Our Owned & Host segment includes our two owned brands, America’s Best and Eyeglass World, as well as our partner brands, Vista Optical locations within select Fred Meyer stores and Vista Optical locations on select military bases.

Our Legacy segment consisted of our partnership with Walmart to operate Vision Centers in select Walmart stores that ended on February 23, 2024.

“Segment Reporting” for more information.

Other operations not classified in reportable segments include:

• Our wholly-owned subsidiary, FirstSight Vision Services, Inc.

(“FirstSight”), which is licensed as a single-service health plan under California law, issues individual vision plans in connection with our America’s Best operations in California.

Until February 23, 2024, it also arranged for the provision of optometric services at optometric offices next to certain Walmart stores throughout California.

• Our e-commerce platform, which is managed by our wholly-owned subsidiary, AC Lens, serves our proprietary e-commerce websites and the e-commerce websites of third parties, including Walmart, Sam’s Club and Giant Eagle.

AC Lens handles site management, customer relationship management (“CRM”) and order fulfillment and also sells a wide variety of contact lenses, eyeglasses and eye care accessories.

Refer to “Our Omni-Channel and E-Commerce Platforms.” above for more information about the wind down of AC Lens operations.

Our Industry 1

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According to the Vision Council, approximately 117 million eye exams were performed in the U.S.

• Increased Usage of Computer and Mobile Screens .

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population has experienced a dramatic increase in the amount of time spent viewing electronic screens.

According to The Vision Council, about 90% of American adults reported using digital devices for more than three hours per day with approximately 80% reporting experiencing symptoms of digital eye strain.

According to the most recent data reported by The Vision Council in 2022, about 90% of American adults reported using digital devices for more than three hours per day with approximately 80% reporting experiencing symptoms of digital eye strain.

This is anticipated to result in a larger percentage of the population suffering from screen-related vision problems, driving incremental sales of vision correction devices, such as traditional eyeglasses and contact lenses, as well as higher margin products designed specifically to counteract the effect of looking at screens for prolonged stretches of time.

Additionally, we believe that remote working and learning arrangements that were necessitated by the COVID-19 pandemic have led to increased use of electronic screens.

• Growing Focus on Health and Wellness .

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Additionally, rising healthcare costs are driving a growing emphasis on preventative healthcare.

Eye exams can detect a host of physical ailments, such as hypertension or diabetes, and are one of the most inexpensive and effective forms of detection for many of these conditions.

Eye exams can detect a host of

1 In recent years, The Vision Council has made multiple updates to its methodology for estimating the size of the optical retail industry including the use of new and updated sources for such data that had not been previously utilized for past industry estimates.

As such, more recent estimates may not be comparable to estimates that the Company had disclosed in previous annual reports on Form 10-K, which, prior to 2023, were formulated using the prior methodology.

The Company continues to evaluate the updated methodology and the new market estimate of a $68.3 billion optical retail industry in 2024, as compared to the $65.6 billion estimate in 2023.

physical ailments, such as hypertension or diabetes, and are one of the most inexpensive and effective forms of detection for many of these conditions.

As consumers continue to develop greater awareness of health and wellness issues, there is an opportunity for retailers that are able to offer personalized, inexpensive, health-oriented products and services that can increase quality of life and reduce an individual’s overall level of healthcare expenditures.

Furthermore, this increased focus on health means that people are living longer, which increases the overall demand for vision care and the frequency with which people visit their eye care practitioners for vision care products and services.

1 In recent years, the Vision Council has made multiple updates to its methodology for estimating the size of the optical retail industry including the use of new and updated sources for such data that had not been previously utilized for past industry estimates.

As more recent estimates are not comparable to estimates that the Company had disclosed in previous annual reports on Form 10-K, the Company continues to evaluate the updated methodology and the new market estimate of a $65.6 billion optical retail industry in 2023 under such revised methodology at this time.

Our Products and Services

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As a result, a significant number of America’s Best customers and Eyeglass World customers who purchase eyeglasses choose upgraded lenses and/or frames instead of each brand’s signature or opening offer.

We also offer in our America’s Best and Eyeglass World stores accessories and contact lenses from all major contact lens manufacturers, including our own private label brands (Sofmed and Natural Eyes HydraWear, made by CooperVision).

In our America’s Best and Eyeglass World stores, we also offer accessories and contact lenses from all major contact lens manufacturers, including our own private label brands (Sofmed and Natural Eyes HydraWear, made by CooperVision).

Collectively, our broad product offerings deliver consistent financial results and reduce our reliance on any individual product, style or trend.

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We believe remote medicine not only helps provide quality, accessible eye care to more patients, but also helps address constraints in exam capacity from optometrist availability in store.

As part of the rollout, we have also invested in the transition to an electronic health record (“EHR”) platform.

We anticipate continuing to invest in these capabilities, including implementing the EHR platform in all America’s Best locations by the end of 2024.

Within our Owned & Host segment, America’s Best offers its Eyecare Club programs primarily to its contact lens customers.

As part of the rollout, we have also invested in the transition to an electronic health record (“EHR”) platform in all America’s Best locations.

America’s Best offers its Eyecare Club programs primarily to its contact lens customers.

As of December 28, 2024, the Eyecare Club had approximately 1.4 million active members.

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For a prescription to be current, customers generally need to have an eye exam every one or two years, depending on the state in which they reside.

The multiyear nature of these memberships, which customers pay in full at the time they join, facilitates repeat traffic to America’s Best stores for exams and contact lens purchases and builds customer loyalty.

“Revenue from Contracts with Customers” in our audited consolidated financial statements included in Part II.

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Our Customers

Our customers need to see their best to perform their jobs, care for their families and contribute to their communities.

We believe that everyone deserves to see their best in order to live their best.

Our customers are savvy shoppers who define value in multiple ways but are unified by getting the products and care they need, at a great price without compromising what they want.

Purchasing decisions are based on value, quality of service, fashion, location and eye health, among other factors.

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Convenience encompasses multiple vectors:

(i) retail locations near where our customers work and shop, with easy, convenient parking, (ii) store hours that fit their lifestyles, (iii) product selection that achieves aesthetic and/or fashion goals, (iv) availability of on-site eye exams and (v) acceptance of certain vision insurance benefits.

retail locations near where our customers work and shop, with easy, convenient parking, (ii) store hours that fit their lifestyles, (iii) product selection that achieves aesthetic and/or fashion goals, (iv) availability of on-site eye exams and (v) acceptance of certain vision insurance benefits.

Our Sales and Marketing

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We then develop and execute highly targeted local marketing campaigns within stores to create awareness of our service and product offerings.

Our CRM system is used to collect customer demographic data.

Our Customer Relationship Management (“CRM”) system is used to collect customer demographic data.

With this information and the third-party data that we use to supplement the customer information, we enhance our customer relationships with communications based on their individual vision needs and interests to help improve existing customer retention.

We are also in the early stages of an upgrade to our CRM capabilities.

In fiscal 2025, we expect to launch a new customer experience platform to centrally manage all customer data, communications and analytics, which would replace our previous CRM system.

We expect this new technology will allow us to build dynamic, omnichannel customer journeys based on individual behaviors and preferences in order to maximize customer engagement and increase customer retention through personalized experiences across our brands.

In addition to our CRM program, digital advertising is a critical component of our media mix, as we believe both of these programs generate a high rate of return.

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We purchase our frame merchandise from a wide variety of vendors, with a limited number of vendors supplying the majority of our eyeglass lenses and contact lenses.

We are a large customer for all of our suppliers and we strive to form meaningful, long-lasting and mutually beneficial relationships with our vendors.

We are a large customer for most of our suppliers and we strive to form meaningful, long-lasting and mutually beneficial relationships with our vendors.

We have long-term contracts with certain of our key suppliers, including Essilor and CooperVision.

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Our Optical Laboratories and Distribution Network

We use a highly efficient mix of four domestic, company-operated processing facilities and have two outsourcing relationships with international, third-party facilities.

We use a highly efficient mix of four domestic, company-operated processing facilities and have an outsourcing relationship with an international, third-party facility.

We have state-of-the-art lens processing capabilities in our geographically diverse, company-operated production facilities in Lawrenceville, Georgia;

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Our centralized optical laboratories handle all aspects of customizing eyeglass lenses, and have digital capabilities for grinding, coating and edging to customer prescription and eyeglass frame specifications.

We have developed a high-volume, low-cost lens processing model to provide seven-day turnaround service through our domestic owned laboratories and our international partner laboratories.

We have developed a high-volume, low-cost lens processing model to provide approximately seven- to 10-day turnaround service through our domestic owned laboratories and our international partner laboratories.

This network was created through significant investment by us and is leveraged across our portfolio of brands to provide efficiency and scale.

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All lens orders that are not processed or completed in store are processed or completed by our centralized laboratory network.

As of December 30, 2023, we had a 118,000 square foot distribution center in Lawrenceville, Georgia and a 52,000 square foot distribution center in Columbus, Ohio, the latter of which is expected to be closed in 2024 as part of the

aforementioned wind down of AC Lens operations.

We utilize third-party carriers to transport products from these centers to customers and store locations.

As of December 28, 2024, we have a 118,000 square foot distribution center in Lawrenceville, Georgia.

We utilize third-party carriers to transport products from the distribution center to customers and store locations.

We have transitioned the contact lens fulfillment and distribution previously handled by AC Lens to a third-party vendor.

We are subleasing the warehouse in Columbus, Ohio that was previously used in our AC Lens operations.

Our Mission and Philanthropic Efforts

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Our philanthropic culture instills a sense of purpose and engagement in our associates, from in-store team members to senior management.

Our associates feel pride in the positive work they are doing, which allows us to attract and retain both store associates and vision care professionals, thus improving the customer experience in our stores.

Our associates feel pride in the positive work they are doing, which helps us to attract and retain both store associates and vision care professionals, thus improving the customer experience in our stores.

In addition, our mission has been essential to the recruitment and retention of our management team, whose extensive experience is a key component of our business success.

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As of December 28, 2024, we had 13,411 full-time and part-time associates, including 636 directly employed optometrists.

As of December 30, 2023, our network of optometrists included 2,645 optometrists, which consists of the 582 directly employed optometrists, 1,621 optometrists employed by professional corporations or similar entities with which we contract, and 442 optometrists who sublease in our store locations.

As of December 31, 2022, we had 13,975 full-time and part-time associates, including 471 directly employed optometrists.

As of December 31, 2022, our network of optometrists included 2,312 optometrists, which consists of the 471 directly employed optometrists, 1,337 optometrists employed by professional corporations or similar entities with which we contract, and 504 optometrists who sublease in our store locations.

As of December 28, 2024, our network of optometrists included 2,393 optometrists, of which 636 were directly employed by us, 1,478 were employed by professional corporations or similar entities with which we contract, and 279 who sublease in our store locations.

Our network of optometrists includes a mix of full-time and part-time optometrists, and this mix can change over time.

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Our Board of Directors (the “Board”) through its committees oversees human capital matters with regular updates and discussion on organizational structure, hiring and retention, compensation and benefits, health and safety matters, employee training and development, succession planning, and associate survey results.

Value and Culture

Values and Culture

We aim to maintain a strong and resonating culture guided by our Vision, Mission and Values.

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Our human capital initiatives are focused on attracting highly qualified individuals and providing them with continued opportunities for growth and development.

We were named one of Newsweek’s America’s Most Responsible Companies for 2024 in recognition of our corporate responsibility and citizenship.

Talent Acquisition

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We continue to refine our technology to improve both the candidate and hiring manager experience.

In 2024, National Vision launched Eyes on Talent Training, specifically designed for hiring managers to enhance talent selection skills.

The training focused on both the candidate experience and interviewing skills.

More than 1,500 managers completed this course.

In addition, we have established critical partnerships with outside vendors that provide us with additional resources to drive candidate flow for key roles.

We are continuing our multi-year sponsorship of the Association of Schools and Colleges of Optometry campaign “Optometry Gives Me Life” targeted at high school and college students, and ensuring that graduating optometrists are educated on the variety of career options available to them.

We are continuing our multi-year sponsorship of the Association of Schools and Colleges of Optometry campaign “Optometry Gives Me Life” targeted at high school and college

students, and ensuring that graduating optometrists are educated on the variety of career options available to them.

Additionally, we support our associates’ interest in attending Optometry school through our internal National Vision Doctor of Optometry Tuition Reimbursement program, which provides for the reimbursement of education expenses to associates attending optometry school.

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Talent Development

We have a proven record of opening new stores with high-quality training support.

We have adapted our new store training approach by introducing and enhancing virtual instructor-led training classes, allowing for high-touch training in a remote setting to prepare stores to open safely and effectively.

We have also increased ongoing training in recent years, especially in the areas of safety protocol procedures and customer interactions.

We provide associates and optometrists with several opportunities and mechanisms through which they can provide feedback and that allows us to continue developing programs for training and growth.

We have invested in supporting our store managers through a Training Store Manager program, which provides training during their critical first steps as new managers.

The program offers high-performing store managers the opportunity to certify as Training Store Managers through a five-week certification process focused on coaching, self-awareness, giving and receiving feedback, and time management.

Once participants are certified as Training Store Managers, they provide onboarding and training support to store managers across their district.

In addition to providing valuable support to new managers and new store teams, the program provides our associates with a new avenue for leadership opportunities and professional development.

We are committed to high-quality training support for our associates.

We have increased ongoing training in recent years, especially in the areas of safety protocol procedures and customer interactions, and have enhanced virtual, instructor-led training classes, allowing for high-touch training in a remote setting.

We provide associates and optometrists with several opportunities and mechanisms through which they can provide feedback, and this allows us to continue developing programs for training and growth.

In 2024, we designed and piloted two new-hire and onboarding programs.

The first is focused on store-based associates and managers and extends the length of the new associate training experience, ensuring associates and managers who are new to their roles have adequate time to learn our culture and the skills needed to be successful.

The second is focused on district managers, and is designed with both new and existing district managers in mind.

For new district managers, it provides a longer and more formal onboarding experience.

For existing, tenured district managers, the program also provides extended career path and growth opportunities to utilize consistent training skills with new district managers.

We have also invested in supporting our new-to-role store managers through the Training Store Manager Program, which provides training during their critical first weeks in their new store.

The program offers high-performing store managers the opportunity to become certified Training Store Managers for their district.

They complete a five-week certification process focused on coaching, self-awareness, giving and receiving feedback, evaluating their business, and time management.

Once participants are certified as Training Store Managers, they are ready to provide onboarding and training support to new store managers in their district.

In addition to providing valuable support to new managers and new store teams, the program provides a new avenue for leadership opportunities and professional development for our associates.

We continued to grow and invest in the Training Store Manager Program in 2024, building on our culture of developing and promoting our associates.

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Since its creation, the fund has provided over $1.9 million to associates for assistance.

Diversity, Equity and Inclusion

We are committed to promoting an inclusive culture and in 2020, we formed a Diversity, Equity and Inclusion department within the Company.

We remain focused on advancing diversity in our recruitment, training, career mentorship and development, employment, branding and community service.

We were named one of Newsweek’s America’s Most Responsible Companies for 2023 for our corporate responsibility and citizenship.

Health and Safety

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At each of our labs and distribution centers, there are specific leaders responsible for the management of associate safety.

For example, lab directors organize and run safety trainings for local associates, some of which are conducted through our Learning Management System and others through in-person instruction.

For example, lab directors organize and run

safety trainings for local associates, some of which are conducted through our Learning Management System and others through in-person instruction.

In our retail locations, we support managers and field leaders in understanding and complying with applicable laws and regulations.

The COVID-19 pandemic presented unique challenges for our associates, doctors, customers and patients.

We prioritized the safety of our associates, optometrists, customers and patients by voluntarily closing our stores to the public for a temporary period of time in 2020 to implement enhanced safety and cleaning protocols in order to serve our customers and patients with everyone’s health and safety in mind.

Health and safety remain at the forefront for us.

Managed Vision Care

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While our managed care business has continued to grow, we are underpenetrated in the managed care market relative to the broader optical retail industry, and we believe that this continues to represent a growth opportunity.

Through our point-of-sale system and our back-office electronic data interchange, or EDI, capabilities, we attempt to create a seamless transactional experience for our managed care customers.

From time to time, vision care insurance payors may make changes to their EDI claim systems.

Such changes may require us to update our processes and could impact our ability to submit claims or to timely receive reimbursements from our managed care partners.

As such, when asked, we have assisted a number of our larger vision care insurance payors to either implement or improve claims transmission processes via application programming interfaces.

Through our point-of-sale system and our back-office electronic data interchange (“EDI”) capabilities, we attempt to create a seamless transactional experience for our managed care customers and have increased training for our store associates with this goal in mind.

From time to time, vision care insurance payors may make changes to their EDI claim systems or experience system outages.

Such changes or outages may require us to update our processes and could impact our ability to submit claims or to timely receive reimbursements from our managed care partners.

As such, when asked, we have assisted a number of our larger vision care insurance payors to either implement or improve claims transmission processes via application programming interfaces (“APIs”).

By the end of fiscal 2025, we expect that such APIs will be implemented with our three largest payors, which we anticipate to improve the customer experience and reduce claim errors that would otherwise result in rejections and potential write-offs.

The optical retail industry is highly competitive.

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The first half seasonality is attributable primarily to the timing of our customers’ income tax refunds and annual health insurance program start/reset periods.

We believe that many customers in our target market are value seeking and lower income consumers who rely on tax refunds to pay for eyewear and eye care.

We believe that many customers in our target market are value-seeking consumers who rely on tax refunds to pay for eyewear and eye care.

A delay in the issuance of tax refunds can accordingly have a timing impact on our quarterly financial results in the first half of the year.

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With respect to our fourth quarter results, compared to other retailers, our products and services are less likely to be included in consumers’ holiday spending budgets, therefore reducing spending on personal vision correction during the weeks preceding December 25th of each year.

Additionally, although the period between December 25th and the end of our fiscal year is typically a high-volume period, the net revenue associated with substantially all orders of prescription eyeglasses and contact lenses during that period is deferred until January due to our policy of recognizing revenue only after the product has been accepted by the customer, further contributing to higher revenue results in the first half of the year.

recognizing revenue only after the product has been accepted by the customer, further contributing to higher revenue results in the first half of the year.

Our quarterly results may also be affected by the timing of new store openings and store closings, the amount of sales contributed by new and existing stores, the timing of certain holidays, and the timing of weather-related store closures.

Changes in consumer behavior driven by lingering effects of the COVID-19 pandemic have resulted in a departure from seasonal norms we have experienced in recent years and may continue to disrupt the historical quarterly cadence of our results of operations for an unknown period of time.

Furthermore, changes in consumer behavior in recent years have suggested a departure from the seasonal norms we have experienced in the past and may continue to disrupt the historical quarterly cadence of our results of operations for an unknown period of time.

Information Technology

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We believe our current systems allow us to identify and respond to operating trends in our business.

Areas in which we have invested and continue to invest in include, among others, software systems to enhance the growth of omni-channel, customer engagement efforts, CRM, remote medicine and EHR platforms rollout, cybersecurity programs, our overall security posture, point-of-sale systems and enterprise resource planning (“ERP”).

Areas in which we have invested and continue to invest in include, among others, software systems to enhance the growth of enterprise resource planning (“ERP”), CRM, omni-channel, customer engagement efforts, remote medicine and EHR platforms, cybersecurity programs, our overall security posture, and point-of-sale systems.

We believe these investments, along with maintenance of our existing information technology capabilities, will provide the flexibility and capacity to accommodate our future growth plans.

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Further, many states interpret these or similar rules broadly to prohibit employment of eye care practitioners by corporations like us and to prohibit various financial arrangements, such as fee-splitting, between eye care practitioners and other entities.

Many states also

regulate certain business practices as well as landlord-tenant arrangements between optical companies and optometrists.

Many states also regulate certain business practices as well as landlord-tenant arrangements between optical companies and optometrists.

For example, some states prohibit a common entrance to a retail optical location and an optometric office.

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Additionally, state legislators and regulators may be reluctant to accept telehealth and remote medicine as a way to provide access to quality patient care.

Recently, there has been an increase in legislative and rulemaking activity that creates disparity across jurisdictions in how telehealth is regulated and how we are able to implement our remote medicine solution.

There is a disparity across jurisdictions in how telehealth is regulated and how we are able to implement our remote medicine solution.

Our ability to launch our remote medicine solution in certain jurisdictions at all or in the most cost-efficient manner is highly dependent on the evolution of these state-by-state requirements and restrictions.

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These state laws apply to breaches of specified elements of PII.

In addition, California and a number of other states have adopted comprehensive consumer privacy laws, and additional states may amend or adopt new laws or regulations regarding data privacy that may be applicable to us, including additional consumer privacy laws.

In addition, more than a dozen states, including California, have adopted comprehensive consumer privacy laws, and additional states may amend or adopt new laws or regulations regarding data privacy that may be applicable to us, including additional consumer privacy laws.

Laws Related to Reimbursement by Government Programs

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The federal Anti-Kickback Statute prohibits, among other things, persons from knowingly and willfully soliciting, offering, paying, receiving or providing remuneration, directly or indirectly, to induce, or in exchange for, the referral of an individual or purchasing, furnishing, recommending or arranging for a good or service for which payment may be made under a federal healthcare program, such as Medicare or Medicaid.

The definition of “remuneration” has been broadly interpreted to include anything of value, including, for example, gifts, certain discounts, the furnishing of free supplies, equipment, office space or services, credit arrangements, payment of cash and waivers of payments.

The definition of “remuneration” has been broadly interpreted to include anything of value, including, for example, gifts,

certain discounts, the furnishing of free supplies, equipment, office space or services, credit arrangements, payment of cash and waivers of payments.

Healthcare providers that have financial relationships may structure their arrangements to meet certain voluntary safe harbors under the federal Anti-Kickback Statute so that such financial relationships and business practices are not treated as offenses under the statute.

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Insurance and Risk Management

We use a combination of purchased insurance and self-insurance for workers’ compensation, general liability, property, director and officers’ liability, and vehicle liability, and associate health-care benefits, among others.

We use a combination of purchased insurance and self-insurance for workers’ compensation, general liability, property, director and officers’ liability, vehicle liability, and associate health-care benefits, among others.

Liabilities associated with the risks that are retained by us are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions.

Where we have retained risk through self-insurance or similar arrangements, we utilize third-party firms to assist management in assessing the financial impact of risk retention.

Our Website and Availability of SEC Reports and Other Information

Our website is www.nationalvision.com .

You may access these documents on the “Investors” section of our website.

The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at the following address:

http:// www.sec.gov.

The information posted to our website is not incorporated into this Form 10-K or any other report we file with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business