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National Vision Holdings Inc NASDAQ: EYE-Q

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National Vision Holdings, Inc. Reports Second Quarter 2021 Financial Results; Raises Fiscal 2021 Outlook

Business Wire - Thu Aug 12, 5:00AM CDT

National Vision Holdings, Inc. (NASDAQ:EYE) ("National Vision" or the "Company") today reported its financial results for the second quarter ended July 3, 2021.

Given the lack of comparability to the second quarter of fiscal 2020 when the Company temporarily closed all of its retail locations to the public through early June due to COVID-19, this release includes a comparison of fiscal 2021 results to fiscal 2019 pre-COVID results, in addition to a condensed comparison to fiscal 2020. For a complete discussion of fiscal 2021 results as compared to fiscal 2020, please see our Quarterly Report on Form 10-Q for the quarter ended July 3, 2021 filed with the Securities and Exchange Commission.

"The National Vision team delivered exceptionally strong results for the second quarter," stated Reade Fahs, chief executive officer. "We believe our continued operating momentum further demonstrates the benefit from the hastening of industry trends that favor our low price model and strong store-level execution to meet heightened demand for affordable eyewear and eye care. I would like to thank the 2,000-plus optometrists and over 13,000 associates at National Vision for their continued resilience and commitment to serve our patients and customers."

Mr. Fahs continued, "During the quarter, we opened 20 stores and achieved another major milestone, as our trailing twelve month net revenue surpassed $2 billion. Also, we were pleased by the positive trend in customer transactions throughout the quarter, especially in June when we lapped record re-opening results last year. Looking ahead, we continue to be excited about our long-term opportunities for expansion and market share growth. Given our consistent performance since re-opening last year and our safety first approach, we are confident in our ability to navigate the challenging and dynamic environment and remain in a position of strength to drive long-term value for our stakeholders."

Adjusted Comparable Store Sales Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Diluted EPS, Adjusted Operating Margin, Adjusted EBITDA Margin, and EBITDA are not measures recognized under generally accepted accounting principles ("GAAP"). Please see "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP to GAAP Financial Measures" below for more information.

Second Quarter 2021 Summary compared to Second Quarter 2019

Net revenue increased 28.0% to $549.5 million compared to the second quarter of 2019.The impact from the timing of unearned revenue on net revenue and profitability was immaterial.Comparable store sales growth was 22.5% and Adjusted Comparable Store Sales Growth was 23.5%.During the second quarter of 2021, the Company opened 20 new stores, closed one store, and ended the quarter with 1,249 stores. Overall, store count grew 10.7% from June 29, 2019 to July 3, 2021.Costs applicable to revenue increased 16.5% to $235.9 million compared to the second quarter of 2019. As a percentage of net revenue, costs applicable to revenue decreased 430 basis points to 42.9% compared to the second quarter of 2019. This decrease as a percentage of net revenue was primarily driven by lower growth in optometrist costs, increased eyeglass mix and higher eyeglass margin.SG&A increased 28.5% to $234.2 million compared to the second quarter of 2019. As a percentage of net revenue, SG&A increased 20 basis points to 42.6% compared to the second quarter of 2019. This increase as a percentage of net revenue was primarily driven by higher stock compensation expense, higher performance-based incentive compensation and higher advertising investment, partially offset by leverage of corporate overhead and occupancy expenses.Net income increased 267% to $37.6 million compared to the second quarter of 2019.Diluted earnings per share increased 230% to $0.42 compared to the second quarter of 2019. Adjusted Diluted EPS increased 163% to $0.48 compared to the second quarter of 2019.Adjusted Operating Income increased 125% to $65.6 million compared to the second quarter of 2019. Adjusted Operating Margin increased 510 basis points to 11.9% compared to the second quarter of 2019.

Second Quarter 2021 Summary compared to Second Quarter 2020 (condensed)

Net revenue increased 111% to $549.5 million compared to the second quarter of 2020.Net revenue was positively impacted by 16.5% due to the timing of unearned revenue.Comparable store sales growth was 99.1% and Adjusted Comparable Store Sales Growth was 76.7%.The Company opened 20 new stores, closed one store, and ended the quarter with 1,249 stores. Overall, store count grew 5.5% from June 27, 2020 to July 3, 2021.Net income increased 186% to $37.6 million compared to the second quarter of 2020.Diluted earnings (loss) per share increased 176% to $0.42 compared to the second quarter of 2020. Adjusted Diluted EPS (loss) increased 217% to $0.48 compared to the second quarter of 2020. The net change in margin on unearned revenue positively impacted Adjusted Diluted EPS by $0.29.Adjusted Operating Income increased 290% to $65.6 million compared to the second quarter of 2020. Adjusted Operating Margin increased 2,510 basis points to 11.9% compared to the second quarter of 2020. The net change in margin on unearned revenue positively impacted Adjusted Operating Income by $32.5 million.

Six-Month Period 2021 Summary compared to Six-Month Period 2019

Net revenue increased 21.7% to $1.1 billion compared to the same period of 2019.Net revenue was negatively impacted by 0.8% due to the timing of unearned revenue.Comparable store sales growth was 15.5% and Adjusted Comparable Store Sales Growth was 16.7%.The Company opened 45 new stores, closed one store, and ended the period with 1,249 stores.Costs applicable to revenue increased 11.1% to $460.6 million compared to the same period of 2019. As a percentage of net revenue, costs applicable to revenue decreased 400 basis points to 42.5% compared to the same period of 2019. This decrease as a percentage of net revenue was primarily driven by higher eyeglass margin, a higher mix of exam sales, and a lower growth in optometrist costs.SG&A increased 21.7% to $457.8 million compared to the same period of 2019. As a percentage of net revenue, SG&A was unchanged at 42.2% compared to the same period of 2019. As a percentage of net revenue, the leverage of corporate overhead, occupancy and advertising expenses was offset by higher performance-based incentive compensation and higher stock compensation expense.Net income increased 193% to $81.0 million compared to the same period of 2019.Diluted earnings per share increased 163% to $0.89 compared to the same period of 2019. Adjusted Diluted EPS increased 96.3% to $0.97 compared to the same period of 2019. The net change in margin on unearned revenue negatively impacted Adjusted Diluted EPS by $0.04.Adjusted Operating Income increased 85.7% to $133.2 million compared to the same period of 2019. Adjusted Operating Margin increased 420 basis points to 12.3% compared to the same period of 2019. The net change in margin on unearned revenue negatively impacted Adjusted Operating Income by $5.8 million.

Six-Month Period 2021 Summary compared to Six-Month Period 2020 (condensed)

Net revenue increased 48.5% to $1.1 billion compared to the same period of 2020.Net revenue was positively impacted by 1.1% due to the timing of unearned revenue.Comparable store sales growth was 48.9% and Adjusted Comparable Store Sales Growth was 53.3%.Net income increased 338% to $81.0 million compared to the same period of 2020.Diluted earnings (loss) per share increased 310% to $0.89 compared to the same period of 2020. Adjusted Diluted EPS (loss) increased 855% to $0.97 compared to the same period of 2020. The net change in margin on unearned revenue positively impacted Adjusted Diluted EPS by $0.07.Adjusted Operating Income increased to $133.2 million compared to the same period of 2020. Adjusted Operating Margin increased 1,180 basis points to 12.3% compared to the same period of 2020. The net change in margin on unearned revenue positively impacted Adjusted Operating Income by $6.1 million.

Balance Sheet and Cash Flow Highlights as of July 3, 2021

The Company's cash balance was $408.3 million as of July 3, 2021. The Company 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 $620.4 million as of July 3, 2021, consisting of outstanding first lien term loans, convertible senior notes and finance lease obligations, net of unamortized discounts.In June 2021, the Company voluntarily prepaid $117.4 million in existing Term A loans. In addition, the Company amended its credit agreement to reduce the applicable margin for interest rate calculations and modify certain financial covenants back to pre-COVID terms.Cash flows from operating activities for the first six-months of 2021 were $189.8 million compared to $71.4 million for the same period of 2020 and $119.3 million for the same period of 2019.Capital expenditures for the first six-months of 2021 totaled $38.8 million compared to $25.8 million for the same period of 2020 and $52.1 million for the same period of 2019.

Fiscal 2021 Outlook

The Company's updated fiscal 2021 outlook reflects the currently expected impacts related to COVID-19, however, the ultimate impacts of COVID-19 on the Company's financial outlook remain uncertain. The outlook shown below assumes no material deterioration to the Company's current business operations as a result of COVID-19 and its variants, governmental actions and regulations. Given the uncertainties, dynamic nature, variants, and unknown duration of the pandemic, the Company is continuing to evaluate additional measures that may be taken to respond to the impact of COVID-19 on its business.

The Company is providing the following updated outlook for the 52 weeks ending January 1, 2022:

Updated Fiscal 2021 Outlook Prior Fiscal 2021 Outlook
New Stores                                              75                         75
Adjusted Comparable Store Sales Growth(1)           19% - 22%                  16% - 19%
Net Revenue                                   $2.01 - $2.06 billion     $1.975 - $2.025 billion
Adjusted Operating Income                      $180 - $187 million        $155 - $162 million
Adjusted Diluted EPS(2)                           $1.28 - $1.33              $1.07 - $1.12
Depreciation and Amortization(3)                   $98 million             $97 - $98 million
Interest(4)                                        $25 million                $28 million
Tax Rate(5)                                            26%                        26%
Capital Expenditures                           $100 - $105 million        $100 - $105 million

The fiscal 2021 outlook information provided above includes Adjusted Operating Income and Adjusted Diluted EPS guidance, which are non-GAAP financial measures management uses in measuring performance. The Company is not able to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including taxes and non-recurring items, which would be included in GAAP results. The impact of such items and unanticipated events could be potentially significant.

The fiscal 2021 outlook is forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and those variations may be material. As such, the Company's results may not fall within the ranges contained in its fiscal 2021 outlook. The Company uses these forward looking measures internally to assess and benchmark its results and strategic plans.

Conference Call Details

A conference call to discuss the second quarter 2021 financial results is scheduled for today, August 12, 2021, at 10:00 a.m. Eastern Time. The U.S. toll free dial-in for the conference call is 866-754-6931 and the international dial-in is 636-812-6625. The conference passcode is 5298057. A live audio webcast of the conference call will be available on the "Investors" section of the Company's website www.nationalvision.com/investors, where presentation materials will be posted prior to the conference call.

A telephone replay will be available shortly after the broadcast through Thursday, August 19, 2021, by dialing 855-859-2056 from the U.S. or 404-537-3406 from international locations, and entering conference passcode 5298057. A replay of the audio webcast will also be archived on the "Investors" section of the Company's website.

About National Vision Holdings, Inc.

National Vision Holdings, Inc. is the second largest optical retail company in the United States (by sales) with more than 1,200 retail stores in 44 states plus the District of Columbia and Puerto Rico. With a mission of helping people by making quality eye care and eyewear more affordable and accessible, the Company operates five retail brands: America's Best Contacts & Eyeglasses, Eyeglass World, Vision Centers inside select Walmart stores, and Vista Opticals inside select Fred Meyer stores and on select military bases, and several e-commerce websites, offering a variety of products and services for customers' eye care needs.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements contained under "Fiscal 2021 Outlook" as well as other statements related to our current beliefs and expectations regarding the performance of our industry, the Company's strategic direction, market position, prospects and future results. You can identify these forward-looking statements by the use of words such as "outlook," "guidance," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Caution should be taken not to place undue reliance on any forward-looking statement as such statements speak only as of the date when made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Forward-looking statements are not guarantees and are subject to various risks and uncertainties, which may cause actual results to differ materially from those implied in forward-looking statements. Such factors include, but are not limited to, the COVID-19 pandemic and its resurgence and variants, and the impact of evolving federal, state, and local governmental actions in response thereto; customer behavior in response to the continuing pandemic and its more recent outbreaks of variants; our ability to keep our reopened stores open in a safe and cost-effective manner, or at all, in light of the continuing COVID-19 pandemic and its resurgence and variants; our ability to recruit and retain vision care professionals for our stores in general and in light of the pandemic; our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors; our ability to maintain the performance of our host and legacy brands and our current operating relationships with our host and legacy partners; our ability to adhere to extensive state, local and federal vision care and healthcare laws and regulations; our compliance with managed vision care laws and regulations; our ability to maintain sufficient levels of cash flow from our operations to execute or sustain our growth strategy or obtain additional financing at satisfactory terms or at all; the loss of, or disruption in the operations of, one or more of our distribution centers and/or optical laboratories, resulting in the inability to fulfill customer orders and deliver our products in a timely manner; risks associated with vendors from whom our products are sourced, including our dependence on a limited number of suppliers; our ability to compete successfully; our ability to effectively operate our information technology systems and prevent interruption or security breach; our growth strategy straining our existing resources and causing the performance of our existing stores to suffer; the impact of wage rate increases, inflation, cost increases and increases in raw material prices and energy prices; our ability to successfully implement our marketing, advertising and promotional efforts; risks associated with leasing substantial amounts of space, including future increases in occupancy costs; the impact of certain technological advances, and the greater availability of, or increased consumer preferences for, vision correction alternatives to prescription eyeglasses or contact lenses, and future drug development for the correction of vision-related problems; our ability to retain our existing senior management team and attract qualified new personnel; overall decline in the health of the economy and other factors impacting consumer spending; our ability to manage our inventory; seasonal fluctuations in our operating results and inventory levels; our reliance on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues; risks associated with our e-commerce and omni-channel business; product liability, product recall or personal injury issues; our failure to comply with, or changes in, laws, regulations, enforcement activities and other requirements; the impact of any adverse litigation judgments or settlements resulting from legal proceedings relating to our business operations; risk of losses arising from our investments in technological innovators in the optical retail industry; our ability to adequately protect our intellectual property; our significant amount of indebtedness and our ability to generate sufficient cash flow to satisfy our debt obligations; a change in interest rates as well as changes in benchmark rates and uncertainty related to the foregoing; restrictions in our credit agreement that limits our flexibility in operating our business; potential dilution to existing stockholders upon the conversion of our convertible notes; and risks related to owning our common stock, including our ability to comply with requirements to design and implement and maintain effective internal controls. Additional information about these and other factors that could cause National Vision's results to differ materially from those described in the forward-looking statements can be found in filings by National Vision with the Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K and subsequently filed reports, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC.

Non-GAAP Financial Measures

To supplement the Company's financial information presented in accordance with GAAP and aid understanding of the Company's business performance, the Company uses certain non-GAAP financial measures, namely "EBITDA," "Adjusted Operating Income," "Adjusted Operating Margin," "Adjusted EBITDA," "Adjusted EBITDA Margin," "Adjusted Diluted EPS," "Adjusted Comparable Stores Sales Growth," "Adjusted SG&A," and "Adjusted SG&A Percent of Net Revenue." We believe EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A and Adjusted SG&A Percent of Net Revenue assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses these non-GAAP financial measures to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.

To supplement the Company's comparable store sales growth presented in accordance with GAAP, the Company provides "Adjusted Comparable Store Sales Growth," which is a non-GAAP financial measure we believe is useful because it provides timely and accurate information relating to the two core metrics of retail sales: number of transactions and value of transactions. Management uses Adjusted Comparable Store Sales Growth as the basis for key operating decisions, such as allocation of advertising to particular markets and implementation of special marketing programs. Accordingly, we believe that Adjusted Comparable Store Sales Growth provides timely and accurate information relating to the operational health and overall performance of each brand. We also believe that, for the same reasons, investors find our calculation of Adjusted Comparable Store Sales Growth to be meaningful.

EBITDA: We define EBITDA as net income (loss), plus interest expense, income tax provision (benefit) and depreciation and amortization.

Adjusted Operating Income: We define Adjusted Operating Income as net income (loss), plus interest expense and income tax provision (benefit), further adjusted to exclude stock compensation expense, asset impairment, litigation settlement, management realignment expenses, long-term incentive plan expense, amortization of acquisition intangibles, and other expenses.

Adjusted Operating Margin: We define Adjusted Operating Margin as Adjusted Operating Income as a percentage of net revenue.

Adjusted EBITDA: We define Adjusted EBITDA as net income, plus interest expense, income tax provision (benefit) and depreciation and amortization, further adjusted to exclude stock compensation expense, asset impairment, litigation settlement, management realignment expenses, long-term incentive plan expense, and other expenses.

Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net revenue.

Adjusted Diluted EPS: We define Adjusted Diluted EPS as diluted earnings (loss) per share, adjusted for the per share impact of stock compensation expense, asset impairment, litigation settlement, management realignment expenses, long-term incentive plan expense, amortization of acquisition intangibles, amortization of debt discount and deferred financing costs of our term loan borrowings, amortization of costs related to our 2025 Notes, losses (gains) on change in fair value of derivatives, other expenses, and tax benefit of stock option exercises, less the tax effect of these adjustments. We adjust for amortization of costs related to the 2025 Notes only when adjustment for these costs is not required in the calculation of diluted earnings per share according to U.S. GAAP.

Adjusted SG&A: We define Adjusted SG&A as SG&A, adjusted to exclude stock compensation expense, management realignment expenses, long-term incentive plan expense, and other expenses.

Adjusted SG&A Percent of Net Revenue: We define Adjusted SG&A Percent of Net Revenue as Adjusted SG&A as a percentage of net revenue.

Adjusted Comparable Store Sales Growth: We measure Adjusted Comparable Store Sales Growth as the increase or decrease in sales recorded by the comparable store base in any reporting period, compared to sales recorded by the comparable store base in the prior reporting period, which we calculate as follows: (i) sales are recorded on a cash basis (i.e., when the order is placed and paid for or submitted to a managed care payor, compared to when the order is delivered), utilizing cash basis point of sale information from stores; (ii) stores are added to the calculation during the 13th full fiscal month following the store's opening; (iii) closed stores are removed from the calculation for time periods that are not comparable; (iv) sales from partial months of operation are excluded when stores do not open or close on the first day of the month; and (v) when applicable, we adjust for the effect of the 53rd week. Quarterly, year-to-date and annual adjusted comparable store sales are aggregated using only sales from all whole months of operation included in both the current reporting period and the prior reporting period. When a partial month is excluded from the calculation, the corresponding month in the subsequent period is also excluded from the calculation. There may be variations in the way in which some of our competitors and other retailers calculate comparable store sales. As a result, our adjusted comparable store sales may not be comparable to similar data made available by other retailers. We did not adjust our calculation of Adjusted Comparable Store Sales Growth for the temporary closure of our stores to the public in 2020 as a result of the COVID-19 pandemic.

EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Diluted EPS, Adjusted SG&A, Adjusted SG&A Percent of Net Revenue, and Adjusted Comparable Store Sales Growth are not recognized terms under GAAP and should not be considered as an alternative to net income or the ratio of net income to net revenue as a measure of financial performance, SG&A, the ratio of SG&A to net revenue as a measure of financial performance, cash flows provided by operating activities as a measure of liquidity, comparable store sales growth as a measure of operating performance, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use as they do not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

Please see "Reconciliation of Non-GAAP to GAAP Financial Measures" below for reconciliations of non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures.

National Vision Holdings, Inc. and Subsidiaries
                                                                                                                                                                Condensed Consolidated Balance Sheets
                                                                                                                                                               As of July 3, 2021 and January 2, 2021
                                                                                                                                                                   In Thousands, Except Par Value
                                                                                                                                                                             (Unaudited)
                                                                                                                                                                                                                                                   
ASSETS                                                                                                                                                                                                                                             As of                         As of                                   As of
                                                                                                                                                                                                                                         July 3, 2021                  July 3, 2021                                              January 2, 2021
                                                                                                                                                                                                                                     -------------------- -----------------------------------                        -----------------------------------
Current assets:                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                         $                    $        408,301     $        373,903  
    Cash and cash equivalents
                                                                                                                                                                                                                                                       54,733           54,733               57,989  
    Accounts receivable, net
                                                                                                                                                                                                                                                      120,863          120,863              111,274  
    Inventories
                                                                                                                                                                                                                                                       24,466           24,466               23,484  
    Prepaid expenses and other current assets
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
                                                                                                                                                                                                                                                          608,363          608,363              566,650  
        Total current assets
                                                                                                                                                                                                                                                   
Property and equipment, net                                                                                                                                                                                                                                335,504          335,504              341,293  
Other assets:                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                      777,613          777,613              777,613  
    Goodwill
                                                                                                                                                                                                                                                      240,547          240,547              240,547  
    Trademarks and trade names
                                                                                                                                                                                                                                                       45,766           45,766               49,511  
    Other intangible assets, net
                                                                                                                                                                                                                                                      343,708          343,708              340,141  
    Right of use assets
                                                                                                                                                                                                                                                       17,715           17,715               17,743  
    Other assets
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
Total non-current assets                                                                                                                                                                                                                                 1,760,853        1,760,853            1,766,848  
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
Total assets                                                                                                                                                                                                                                  $                    $      2,369,216     $      2,333,498  
                                                                                                                                                                                                                                     ==================== ====== ========= ====================                      ====== ========= ====================
LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                       
Current liabilities:                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                         $                    $         77,677     $         64,861  
    Accounts payable
                                                                                                                                                                                                                                                      116,508          116,508              110,309  
    Other payables and accrued expenses
                                                                                                                                                                                                                                                       39,071           39,071               32,657  
    Unearned revenue
                                                                                                                                                                                                                                                       68,612           68,612               58,899  
    Deferred revenue
                                                                                                                                                                                                                                                        4,285            4,285                3,598  
    Current maturities of long-term debt and finance lease obligations
                                                                                                                                                                                                                                                       64,330           64,330               58,356  
    Current operating lease obligations
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
                                                                                                                                                                                                                                                          370,483          370,483              328,680  
        Total current liabilities
                                                                                                                                                                                                                                                   
Long-term debt and finance lease obligations, less current portion and debt discount                                                                                                                                                                       616,160          616,160              651,763  
Non-current operating lease obligations                                                                                                                                                                                                                    326,478          326,478              327,371  
Other non-current liabilities:                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                       23,483           23,483               20,828  
    Deferred revenue
                                                                                                                                                                                                                                                       14,272           14,272               17,415  
    Other liabilities
                                                                                                                                                                                                                                                       80,003           80,003               80,939  
    Deferred income taxes, net
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
                                                                                                                                                                                                                                                          117,758          117,758              119,182  
        Total other non-current liabilities
Commitments and contingencies                                                                                                                                                                                                                                         
Stockholders' equity:                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                          828              828                  821  
    Common stock, $0.01 par value; 200,000 shares authorized; 82,828 and 82,183 shares issued as of July 3, 2021 and January 2, 2021, respectively; 81,855 and 81,239 shares outstanding as of July 3, 2021 and January 2, 2021, respectively
                                                                                                                                                                                                                                                      739,380          739,380              795,697  
    Additional paid-in capital
                                                                                                                                                                                                                                                       (3,093           (3,093 )                                (4,400 )
    Accumulated other comprehensive loss
                                                                                                                                                                                                                                                      231,184          231,184              142,880  
    Retained earnings
                                                                                                                                                                                                                                                      (29,962          (29,962 )                               (28,496 )
    Treasury stock, at cost; 973 and 944 shares as of July 3, 2021 and January 2, 2021, respectively
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
                                                                                                                                                                                                                                                          938,337          938,337              906,502  
        Total stockholders' equity
                                                                                                                                                                                                                                     -------------------- ---------------  --------------------                      ---------------  --------------------
National Vision Holdings, Inc. and Subsidiaries
                                                                                                                                                                               Condensed Consolidated Statements of Operations and Comprehensive Income
                                                                                                                                                                           For the Three and Six Months Ended July 3, 2021, June 27, 2020 and June 29, 2019
                                                                                                                                                                                                In Thousands, Except Earnings Per Share
                                                                                                                                                                                                              (Unaudited)
                                                                                                                                                                                                   
                                                         Three Months Ended                                                                     Three Months Ended                                                                                                                                          Six Months Ended
                                                                           -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                                ---------------------------------------------------------------------------------------------------------------------------------------------
                                                            July 3, 2021                 July 3, 2021                           June 27, 2020                          June 29, 2019                          July 3, 2021                           June 27, 2020                         June 29, 2019
                                                                           -------------------- ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ---------------------------------                        ----------------------------------
Revenue:                                                                                                                                                                         
                                                                           $                    $       458,206     $       209,707     $       357,533     $       901,273     $      602,548     $       740,693  
    Net product sales
                                                                                         91,283          91,283              50,300              71,918             182,396            127,163             149,973  
    Net sales of services and plans
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------
                                                                                        549,489         549,489             260,007             429,451           1,083,669            729,711             890,666  
      Total net revenue
Costs applicable to revenue (exclusive of depreciation and amortization):                                                                                                        
                                                                                        167,028         167,028              97,635             145,654             326,719            254,005             299,658  
    Products
                                                                                         68,918          68,918              43,145              56,852             133,917            105,329             114,817  
    Services and plans
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------
                                                                                        235,946         235,946             140,780             202,506             460,636            359,334             414,475  
      Total costs applicable to revenue
Operating expenses:                                                                                                                                                              
                                                                                        234,235         234,235             136,582             182,278             457,828            330,323             376,154  
    Selling, general and administrative expenses
                                                                                         24,025          24,025              21,924              20,819              47,580             46,734              41,234  
    Depreciation and amortization
                                                                                            519             519               2,411               1,790               1,478             13,766               3,872  
    Asset impairment
                                                                                 --  --      --      --      --              4,395      --  
    Litigation settlement
                                                                                            (65             (65 )                                  (92 )                                  356                (130 )                                (158 )                                  829  
    Other expense (income), net
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------
                                                                                        258,714         258,714             160,825             205,243             506,756            395,060             422,089  
      Total operating expenses
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Income (loss) from operations                                                            54,829          54,829             (41,598 )                               21,702             116,277            (24,683 )                               54,102  
                                                                                         10,096          10,096              15,502               8,968              16,426             22,957              18,029  
    Interest expense, net
                                                                                             92              92                 136      --                  92                136      --  
    Debt issuance costs
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Earnings (loss) before income taxes                                                      44,641          44,641             (57,236 )                               12,734              99,759            (47,776 )                               36,073  
Income tax provision (benefit)                                                            7,040           7,040             (13,403 )                                2,477              18,726            (13,685 )                                8,387  
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Net income (loss)                                                          $                    $        37,601     $       (43,833 )                      $        10,257     $        81,033     $      (34,091 )                      $        27,686  
                                                                           ==================== ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ======= ====================                      ======= ======= ====================
                                                                                                                                                              
Earnings (loss) per share:                                                                                                                                                       
                                                                           $                    $          0.46     $         (0.55 )                      $          0.13     $          0.99     $        (0.42 )                      $          0.35  
    Basic
                                                                           $                    $          0.42     $         (0.55 )                      $          0.13     $          0.89     $        (0.42 )                      $          0.34  
    Diluted
Weighted average shares outstanding:                                                                                                                                             
                                                                                         81,601          81,601              80,325              78,318              81,457             80,226              78,262  
    Basic
                                                                                         96,082          96,082              80,325              81,424              96,044             80,226              81,437  
    Diluted
                                                                                                                                                              
Comprehensive income (loss):                                                                                                                                                     
                                                                           $                    $        37,601     $       (43,833 )                      $        10,257     $        81,033     $      (34,091 )                      $        27,686  
    Net income (loss)
                                                                                          2,959           2,959               4,111              (2,246 )                                4,609             (4,747 )                               (3,519 )
    Unrealized gain (loss) on hedge instruments
                                                                                            756             756               1,050                (576 )                                3,302             (1,206 )                                 (902 )
    Tax provision (benefit) of unrealized gain (loss) on hedge instruments
                                                                           -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------                      --------------  --------------------

Note: The three and six-months ended July 3, 2021 diluted EPS is calculated using the if-converted method for the 2025 Notes adding back $2.4 million and $4.7 million of interest expense (after tax) related to the 2025 Notes, respectively, and assuming conversion of the 2025 Notes at the beginning of 2021.

National Vision Holdings, Inc. and Subsidiaries
                                                                                                        Condensed Consolidated Statements of Cash Flows
                                                                                            For the Six Months Ended July 3, 2021, June 27, 2020 and June 29, 2019
                                                                                                                         In Thousands
                                                                                                                          (Unaudited)
                                                                  
                                                                 Six Months Ended                                                                       Six Months Ended
                                                                                  -------------------- ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                   July 3, 2021                 July 3, 2021                           June 27, 2020                         June 29, 2019
                                                                                  -------------------- ----------------------------------                        ---------------------------------                        ----------------------------------
Cash flows from operating activities:                                                                                       
Net income (loss)                                                                 $                    $        81,033     $      (34,091 )                      $        27,686  
Adjustments to reconcile net income to net cash provided by operating activities:                                           
                                                                                                47,580          47,580             46,734              41,234  
    Depreciation and amortization
                                                                                                 2,268           2,268              2,717                 892  
    Amortization of debt discount and deferred financing costs
                                                                                                 1,478           1,478             13,766               3,872  
    Asset impairment
                                                                                                14,582          14,582            (13,686 )                                8,239  
    Deferred income tax expense (benefit)
                                                                                                10,201          10,201              5,445               4,717  
    Stock based compensation expense
                                                                                                   125             125              4,871      --  
    Losses (gains) on change in fair value of derivatives
                                                                                                   619             619              2,883               2,043  
    Inventory adjustments
                                                                                                 1,253           1,253              3,328               6,759  
    Other
Changes in operating assets and liabilities:                                                                                
                                                                                                 2,393           2,393            (14,408 )                               (8,662 )
    Accounts receivable
                                                                                               (10,208         (10,208 )                               6,814               8,319  
    Inventories
                                                                                                   149             149              1,174               1,948  
    Operating lease right of use assets and lease liabilities
                                                                                                (1,148          (1,148 )                               2,047               6,137  
    Other assets
                                                                                                12,816          12,816             11,630               3,458  
    Accounts payable
                                                                                                18,782          18,782              8,025               5,006  
    Deferred and unearned revenue
                                                                                                 7,885           7,885             24,171               7,631  
    Other liabilities
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Net cash provided by operating activities                                                      189,808         189,808             71,420             119,279  
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Cash flows from investing activities:                                                                                       
                                                                                               (38,812         (38,812 )                             (25,796 )                              (52,103 )
    Purchase of property and equipment
                                                                                                    22              22                265                 315  
    Other
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Net cash used for investing activities                                                         (38,790         (38,790 )                             (25,531 )                              (51,788 )
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Cash flows from financing activities:                                                                                       
                                                                                        --  --            548,769      --  
    Borrowings on long-term debt, net of discounts
                                                                                              (117,375        (117,375 )                            (369,269 )                               (2,500 )
    Repayments on long-term debt
                                                                                                 5,738           5,738              5,998               2,066  
    Proceeds from exercise of stock options
                                                                                                (1,466          (1,466 )                                 (74 )                       --  
    Purchase of treasury stock
                                                                                                  (900            (900 )                             (12,400 )                       --  
    Payments of debt issuance costs
                                                                                                (2,526          (2,526 )                              (1,587 )                               (1,190 )
    Payments on finance lease obligations
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Net cash provided by (used for) financing activities                                          (116,529        (116,529 )                             171,437              (1,624 )
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Net change in cash, cash equivalents and restricted cash                                        34,489          34,489            217,326              65,867  
Cash, cash equivalents and restricted cash, beginning of year                                  375,159         375,159             40,307              17,998  
                                                                                  -------------------- --------------  --------------------                      -------------  --------------------                      --------------  --------------------
Cash, cash equivalents and restricted cash, end of period                         $                    $       409,648     $      257,633     $        83,865  
                                                                                  ==================== ======= ======= ====================                      ====== ======= ====================                      ======= ======= ====================
                                                                                                         
Supplemental cash flow disclosure information:                                                                              
Cash paid for interest                                                            $                    $        14,640     $       13,810     $        17,438  
Cash paid (received) for taxes                                                    $                    $         6,995     $       (1,452 )                      $           513
National Vision Holdings, Inc. and Subsidiaries
                                                                                                                                                                          Reconciliation of Non-GAAP to GAAP Financial Measures
                                                                                                                                                            For the Three and Six Months Ended July 3, 2021, June 27, 2020 and June 29, 2019
                                                                                                                                                                               In Thousands, Except Per Share Information
                                                                                                                                                                                               (Unaudited)
 
Reconciliation of Adjusted Operating Income to Net Income
                          Three Months Ended                                                                     Three Months Ended                                                                                                                                          Six Months Ended
                                            -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                                ----------------------------------------------------------------------------------------------------------------------------------------------
In thousands                                    July 3, 2021                 July 3, 2021                           June 27, 2020                          June 29, 2019                          July 3, 2021                           June 27, 2020                          June 29, 2019
                                            -------------------- ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------
Net income (loss)                           $                    $        37,601     $       (43,833 )                      $        10,257     $        81,033     $       (34,091 )                      $        27,686  
Interest expense                                          10,096          10,096              15,502               8,968              16,426              22,957              18,029  
Income tax provision (benefit)                             7,040           7,040             (13,403 )                                2,477              18,726             (13,685 )                                8,387  
Stock compensation expense (a)                             7,213           7,213               3,352               1,741              10,201               5,445               4,717  
Asset impairment (b)                                         519             519               2,411               1,790               1,478              13,766               3,872  
Litigation settlement (c)                         --  --      --      --      --               4,395      --  
Management realignment expenses (d)               --  --      --      --      --      --               2,155  
Long-term incentive plan (e)                      --  --      --                 781      --      --                 722  
Amortization of acquisition intangibles (f)                1,871           1,871               1,851               1,851               3,744               3,702               3,702  
Other (i)                                                  1,241           1,241                (307 )                                1,223               1,641               1,149               2,467  
                                            -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                            $                    $        65,581     $       (34,427 )                      $        29,088     $       133,249     $         3,638     $        71,737  
  Adjusted Operating Income
                                            ==================== ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                
                                                             6.8             6.8 %                                (16.9 )%                                 2.4 %                                  7.5 %                                 (4.7 )%                                 3.1 %
  Net income (loss) margin
                                                            11.9            11.9 %                                (13.2 )%                                 6.8 %                                 12.3 %                                  0.5 %                                  8.1 %
  Adjusted Operating Margin
Reconciliation of EBITDA and Adjusted EBITDA to Net Income
                  Three Months Ended                                                                     Three Months Ended                                                                                                                                          Six Months Ended
                                    -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                                ----------------------------------------------------------------------------------------------------------------------------------------------
In thousands                            July 3, 2021                 July 3, 2021                           June 27, 2020                          June 29, 2019                          July 3, 2021                           June 27, 2020                          June 29, 2019
                                    -------------------- ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------
Net income (loss)                   $                    $        37,601     $       (43,833 )                      $        10,257     $        81,033     $       (34,091 )                      $        27,686  
Interest expense                                  10,096          10,096              15,502               8,968              16,426              22,957              18,029  
Income tax provision (benefit)                     7,040           7,040             (13,403 )                                2,477              18,726             (13,685 )                                8,387  
Depreciation and amortization                     24,025          24,025              21,924              20,819              47,580              46,734              41,234  
                                    -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                                  78,762          78,762             (19,810 )                               42,521             163,765              21,915              95,336  
  EBITDA
                                                                                                                        
Stock compensation expense (a)                     7,213           7,213               3,352               1,741              10,201               5,445               4,717  
Asset impairment (b)                                 519             519               2,411               1,790               1,478              13,766               3,872  
Litigation settlement (c)                 --  --      --      --      --               4,395      --  
Management realignment expenses (d)       --  --      --      --      --      --               2,155  
Long-term incentive plan (e)              --  --      --                 781      --      --                 722  
Other (i)                                          1,241           1,241                (307 )                                1,223               1,641               1,149               2,467  
                                    -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                    $                    $        87,735     $       (14,354 )                      $        48,056     $       177,085     $        46,670     $       109,269  
  Adjusted EBITDA
                                    ==================== ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                        
                                                     6.8             6.8 %                                (16.9 )%                                 2.4 %                                  7.5 %                                 (4.7 )%                                 3.1 %
  Net income (loss) margin
                                                    16.0            16.0 %                                 (5.5 )%                                11.2 %                                 16.3 %                                  6.4 %                                 12.3 %
  Adjusted EBITDA Margin
Reconciliation of Adjusted Diluted EPS to Diluted EPS
                                             Three Months Ended                                                                     Three Months Ended                                                                                                                                          Six Months Ended
                                                               -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                                ----------------------------------------------------------------------------------------------------------------------------------------------
In thousands, except per share amounts                             July 3, 2021                 July 3, 2021                           June 27, 2020                          June 29, 2019                          July 3, 2021                           June 27, 2020                          June 29, 2019
                                                               -------------------- ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------
Diluted EPS                                                    $                    $          0.42     $         (0.55 )                      $          0.13     $          0.89     $         (0.42 )                      $          0.34  
Stock compensation expense (a)                                                 0.08            0.08                0.04                0.02                0.11                0.07                0.06  
Asset impairment (b)                                                           0.01            0.01                0.03                0.02                0.02                0.17                0.05  
Litigation settlement (c)                                            --  --      --      --      --                0.05      --  
Management realignment expenses (d)                                  --  --      --      --      --      --                0.03  
Long-term incentive plan (e)                                         --  --      --                0.01      --      --                0.01  
Amortization of acquisition intangibles (f)                                    0.02            0.02                0.02                0.02                0.04                0.05                0.05  
Amortization of debt discount and deferred financing costs (g)                 0.01            0.01                0.03                0.01                0.01                0.03                0.01  
Losses (gains) on change in fair value of derivatives (h)                      0.02            0.02                0.06      --      --                0.06      --  
Other (m)                                                                      0.01            0.01      --                0.02               (0.01 )                                 0.01                0.03  
Tax benefit of stock option exercises (j)                                     (0.04           (0.04 )                       --               (0.01 )                                (0.05 )                                (0.04 )                                (0.02 )
Tax effect of total adjustments (k)                                           (0.04           (0.04 )                                (0.05 )                                (0.02 )                                (0.05 )                                (0.12 )                                (0.06 )
                                                               -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
                                                               $                    $          0.48     $         (0.41 )                      $          0.18     $          0.97     $         (0.13 )                      $          0.49  
  Adjusted Diluted EPS
                                                               ==================== ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                   
Weighted average diluted shares outstanding                                  96,082          96,082              80,325              81,424              96,044              80,226              81,437
Reconciliation of Adjusted SG&A and Adjusted SG&A Percent of Net Revenue to SG&A
                     Three Months Ended                                                                     Three Months Ended                                                                                                                                          Six Months Ended
                                       -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                                ---------------------------------------------------------------------------------------------------------------------------------------------
In thousands                               July 3, 2021                 July 3, 2021                           June 27, 2020                          June 29, 2019                          July 3, 2021                           June 27, 2020                          June 29, 2019
                                       -------------------- ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------                        ---------------------------------
SG&A                                   $                    $       234,235     $       136,582     $       182,278     $       457,828     $       330,323     $      376,154  
Stock compensation expense (a)                        7,213           7,213               3,352               1,741              10,201               5,445              4,717  
Management realignment expenses (d)          --  --      --      --      --      --              2,155  
Long-term incentive plan (e)                 --  --      --                 781      --      --                722  
Other (l)                                             1,241           1,241                (307 )                                  776               1,641               1,149              1,460  
                                       -------------------- --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------------  --------------------
                                       $                    $       225,781     $       133,537     $       178,980     $       445,986     $       323,729     $      367,100  
  Adjusted SG&A
                                       ==================== ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ======= ====================
                                                                                                                           
                                                       42.6            42.6 %                                 52.5 %                                 42.4 %                                 42.2 %                                 45.3 %                                42.2 %
  SG&A Percent of Net Revenue
                                                       41.1            41.1 %                                 51.4 %                                 41.7 %                                 41.2 %                                 44.4 %                                41.2 %
  Adjusted SG&A Percent of Net Revenue
(a) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and performance vesting conditions.                                                                                                                                                                                                                                     Non-cash charges related to stock-based compensation programs, which vary from period to period depending on the timing of awards and performance vesting conditions.
(b) Reflects write-off of property, equipment and lease related assets on closed or underperforming stores.                                                                                                                                                                                                                                     Reflects write-off of property, equipment and lease related assets on closed or underperforming stores.
(c) Expenses associated with settlement of litigation.                                                                                                                                                                                                                                     Expenses associated with settlement of litigation.
(d) Expenses related to a non-recurring management realignment described in the Current Report on Form 8-K filed with the SEC on January 10, 2019.                                                                                                                                                                                                                                     Expenses related to a non-recurring management realignment described in the Current Report on Form 8-K filed with the SEC on January 10, 2019.
(e) Expenses pursuant to a long-term incentive plan for non-executive employees who were not participants in the management equity plan for fiscal year 2019. This plan was effective in 2014 following the acquisition of the Company by affiliates of KKR & Co. Inc. (the "KKR Acquisition").                                                                                                                                                                                                                                     Expenses pursuant to a long-term incentive plan for non-executive employees who were not participants in the management equity plan for fiscal year 2019. This plan was effective in 2014 following the acquisition of the Company by affiliates of KKR & Co. Inc. (the "KKR Acquisition").
(f) Amortization of the increase in carrying values of finite-lived intangible assets resulting from the application of purchase accounting to the KKR Acquisition.                                                                                                                                                                                                                                     Amortization of the increase in carrying values of finite-lived intangible assets resulting from the application of purchase accounting to the KKR Acquisition.
(g) Amortization of deferred financing costs and other non-cash charges related to our long-term debt. We adjust for amortization of costs related to the 2025 Notes only when adjustment for these costs is not required in the calculation of diluted earnings per share according to U.S. GAAP. Amortization of debt discount and deferred financing costs in aggregate total $1.0 million, $2.5 million and $0.5 million for the three months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively, and $1.2 million, $2.7 million and $0.9 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively.                                                                                                                                                                                                                                     Amortization of deferred financing costs and other non-cash charges related to our long-term debt. We adjust for amortization of costs related to the 2025 Notes only when adjustment for these costs is not required in the calculation of diluted earnings per share according to U.S. GAAP. Amortization of debt discount and deferred financing costs in aggregate total $1.0 million, $2.5 million and $0.5 million for the three months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively, and $1.2 million, $2.7 million and $0.9 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively.
(h) Reflects losses (gains) recognized in interest expense on change in fair value of de-designated hedges of $2.4 million and $4.9 million for the three months ended July 3, 2021 and June 27, 2020, respectively, and $0.1 million and $4.9 million for the six months ended July 3, 2021 and June 27, 2020, respectively.                                                                                                                                                                                                                                     Reflects losses (gains) recognized in interest expense on change in fair value of de-designated hedges of $2.4 million and $4.9 million for the three months ended July 3, 2021 and June 27, 2020, respectively, and $0.1 million and $4.9 million for the six months ended July 3, 2021 and June 27, 2020, respectively.
(i) Other adjustments include amounts that management believes are not representative of our operating performance (amounts in brackets represent reductions in Adjusted Operating Income, Adjusted Diluted EPS and Adjusted EBITDA), including our share of losses on equity method investments of $0.4 million for the three months ended June 29, 2019 and $1.0 million for the six months ended June 29, 2019; the amortization impact of adjustments related to the KKR Acquisition, (e.g., fair value of leasehold interests) of $0.1 million for each of the three months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively, and $0.2 million for each of the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively; costs of severance and relocation of $0.7 million, $0.2 million and $0.6 million for the three months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively, and $0.8 million, $0.5 million and $0.8 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively; excess payroll taxes related to stock option exercises of $0.2 million and $0.1 million for the three months ended July 3, 2021 and June 29, 2019, respectively, and $0.3 million, $0.3 million and $0.1 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively; incremental costs directly related to adapting the Company's operations during the COVID-19 pandemic of $0.6 million for the six months ended June 27, 2020; and other expenses and adjustments totaling $0.2 million and $(0.7) million for the three months ended July 3, 2021 and June 27, 2020, respectively, and $0.3 million, $(0.5) million and $0.3 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively. Other adjustments include amounts that management believes are not representative of our operating performance (amounts in brackets represent reductions in Adjusted Operating Income, Adjusted Diluted EPS and Adjusted EBITDA), including our share of losses on equity method investments of $0.4 million for the three months ended June 29, 2019 and $1.0 million for the six months ended June 29, 2019; the amortization impact of adjustments related to the KKR Acquisition, (e.g., fair value of leasehold interests) of $0.1 million for each of the three months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively, and $0.2 million for each of the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively; costs of severance and relocation of $0.7 million, $0.2 million and $0.6 million for the three months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively, and $0.8 million, $0.5 million and $0.8 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively; excess payroll taxes related to stock option exercises of $0.2 million and $0.1 million for the three months ended July 3, 2021 and June 29, 2019, respectively, and $0.3 million, $0.3 million and $0.1 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively; incremental costs directly related to adapting the Company's operations during the COVID-19 pandemic of $0.6 million for the six months ended June 27, 2020; and other expenses and adjustments totaling $0.2 million and $(0.7) million for the three months ended July 3, 2021 and June 27, 2020, respectively, and $0.3 million, $(0.5) million and $0.3 million for the six months ended July 3, 2021, June 27, 2020 and June 29, 2019, respectively.
(j) Tax benefit associated with accounting guidance requiring excess tax benefits related to stock option exercises to be recorded in earnings as discrete items in the reporting period in which they occur.                                                                                                                                                                                                                                     Tax benefit associated with accounting guidance requiring excess tax benefits related to stock option exercises to be recorded in earnings as discrete items in the reporting period in which they occur.
(k) Represents the income tax effect of the total adjustments at our combined statutory federal and state income tax rates.                                                                                                                                                                                                                                     Represents the income tax effect of the total adjustments at our combined statutory federal and state income tax rates.
(l) Reflects other expenses in (i) above, except for our share of losses on equity method investments of $0.4 million for the three months ended June 29, 2019 and $1.0 million for the six months ended June 29, 2019.                                                                                                                                                                                                                                     Reflects other expenses in (i) above, except for our share of losses on equity method investments of $0.4 million for the three months ended June 29, 2019 and $1.0 million for the six months ended June 29, 2019.
Reconciliation of Adjusted Comparable Store Sales Growth to Total Comparable Store Sales Growth
                       Comparable store sales growth(a)                                                                               Comparable store sales growth(a)
                                          -------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                Second Quarter                                  Second Quarter                                                    Year to Date                             
                                          -------------------------------- ----------------------------------------------------------                          ----------------------------------------------------------                          --------------------
                                 2021 vs. 2019              2021 vs. 2019          2021 vs. 2020          2021 vs. 2019          2021 vs. 2020          2021 Outlook
                                          -------------------------------- -------------------  -------------------- -------------------                       -------------------  -------------------- -------------------                       --------------------
Owned & Host segment                                                     
America's Best                             26.1       26.1 %                 81.8 %                 18.4 %                 54.9 %            
Eyeglass World                                                        27.1       27.1 %                 67.6 %                 22.3 %                 57.1 %            
Military                                                              (0.2       (0.2 )%                65.0 %                 (1.6 )%                38.1 %            
Fred Meyer                                                            (8.7       (8.7 )%                61.1 %                (10.3 )%                36.1 %            
Legacy segment                                                        11.4       11.4 %                 58.2 %                  6.1 %                 42.6 %            
                                                      
Total comparable store sales growth                                   22.5       22.5 %                 99.1 %                 15.5 %                 48.9 %                 18% - 21%
(a) Total comparable store sales based on consolidated net revenue excluding the impact of (i) Corporate/Other segment net revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth is calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 10. "Segment Reporting" in our unaudited condensed consolidated financial statements included in Part I. Item 1. in our Quarterly Report on Form 10-Q, with the exception of the Legacy segment, which is adjusted as noted in clause (b) (ii) below. Total comparable store sales based on consolidated net revenue excluding the impact of (i) Corporate/Other segment net revenue, (ii) sales from stores opened less than 13 months, (iii) stores closed in the periods presented, (iv) sales from partial months of operation when stores do not open or close on the first day of the month and (v) if applicable, the impact of a 53rd week in a fiscal year. Brand-level comparable store sales growth is calculated based on cash basis revenues consistent with what the CODM reviews, and consistent with reportable segment revenues presented in Note 10. "Segment Reporting" in our unaudited condensed consolidated financial statements included in Part I. Item 1. in our Quarterly Report on Form 10-Q, with the exception of the Legacy segment, which is adjusted as noted in clause (b) (ii) below.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005177/en/

SOURCE: National Vision Holdings, Inc.

Investors:

National Vision Holdings, Inc.
David Mann, CFA, Vice President of Investor Relations
(470) 448-2448
investor.relations@nationalvision.com

Media:

National Vision Holdings, Inc.
Racheal Peters, Manager of External Communications
(470) 448-2303
media@nationalvision.com
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