NEW YORK, April 3, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of National Vision Holdings, Inc. ("National Vision" or the "Company") (NASDAQ: EYE). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether National Vision and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On November 10, 2021, National Vision issued a press release which announced the Company's financial results for the third quarter of 2021. Among other items, the release tightened the Company's sales and revenue outlook toward the upper end of its previously issued 2021 guidance, but did not change the Company's earnings outlook, indicating that National Vision was suffering from a substantial deterioration in profit margins during the fourth quarter 2021. That same day, National Vision held an earnings call with analysts and investors, during which the Company's Chief Financial Officer admitted that "lower Q4 profitability" was not due to unforeseen circumstances, but rather in substantial part "due to the impact of the wage investments implemented earlier this year."
On this news, National Vision's stock price fell $8.30 per share, or 13.07%, to close at $55.22 per share on November 10, 2022.
Then, on May 10, 2022, National Vision issued disappointing financial and operational results for its first fiscal quarter of 2022. Among other items, the Company reported that during the quarter, on a year-over-year basis, the Company's net revenues had decreased 1.2% to $527.7 million, its adjusted comparable store sales had fallen 6.8%, net income had decreased 30.6% to $30.1 million, and its diluted EPS had decreased 28.2% to $0.34. The release also slashed the Company's 2022 outlook, lowering adjusted CSS to a range of negative 7% to negative 4%, net revenue to a range of $2.01 billion to $2.07 billion, adjusted operating income to a range of $85 million to $105 million, and adjusted diluted EPS to a range of $0.65 to $0.80. Notably, the revised projections indicated that the Company was actually performing worse in terms of profits and earnings than before the pandemic. The release blamed "'emerging constraints to exam capacity'" as a major reason for the shortfall, a fact that National Vision's top officers confirmed on the Company's subsequent earnings call related to a lack of sufficient optometrists.
On this news, National Vision's stock price fell $8.64 per share, or 25.74%, to close at $24.93 per share on May 10, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
