People of WalMart

[drk]

Walmart contract will not be renewed, National Vision says, and stock drops 11%​



Provided by Dow Jones
Jul 26, 2023 3:43 PM CDT
Shares of National Vision Holdings Inc. (EYE) fell more than 11% in the extended session Wednesday after the optical retailer operating brands such as America's Best and Eyeglass World said that its contract with Walmart Inc. (WMT) won't be renewed after it ends in February. That includes supplying and operating "vision centers" in some Walmart stores, providing contact lens distribution and related services to Walmart and its affiliate, and optometry services at some Walmart locations in California, the company said. "We value and appreciate the contributions that our partnership with Walmart has had in helping us grow National Vision over the past three decades," Chief Executive Reade Fahs said in a statement. "While this decision was not expected, we look forward to beginning a new chapter as a more streamlined company ever more focused on delivering value to our stakeholders through our mission of making eyewear and eye care more affordable and accessible." Walmart notified National Vision that the contract wouldn't be renewed last week, the company said, without providing further details. National Vision also released preliminary second-quarter earnings, including an adjusted EPS of 17 cents a share on sales of $525 million, up 3% from the year-ago period. That compares with FactSet expectations of adjusted EPS of 15 cents a share on sales of $526 million.

-Claudia Assis

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[Elvis Is Alive]

Ouch for shareholders. According to Vision Monday, they operated 230 WalMart locations as of the end of 2022.

I'd guess Walmart will operate them internally going forward.

[Uncle Fester]

drk- In a cage match (which I'd pay for ringside seats!) who wins- Big E or Walmart?

Nationwide does anyone know how many total opticals Walmart operates?

Are any in licensed states???

(California doesn't count as I'm told there is no enforcement and the law is ignored.)

[Elvis Is Alive]

Again according to Vision Monday as of the end of 2022: Sams Locations (547) and Walmart Locations (2875) operated by Walmart Inc.

They are in nearly every state (if not all) including all of the licensed ones.

[Elvis Is Alive]

Walmart should move into 3rd position in gross sales behind Vision Source (Lux in sheep's clothing) and Luxottica Retail. National Vision should drop to 4th at a minimum. They could be passed by EyeCare Partners (Clarkson, Nationwide, among others) as well.

[waynegilpin]

drk- In a cage match (which I'd pay for ringside seats!) who wins- Big E or Walmart?

Nationwide does anyone know how many total opticals Walmart operates?

Are any in licensed states???

(California doesn't count as I'm told there is no enforcement and the law is ignored.)

Connecticut. National Vision had a bunch of Walmart locations in CT at one time. Far fewer now.

[IIxIPariahIxII]

They're all over the place. And required licenses in the licensed state. So that will be......interesting to watch. Walmart may make a move to retain the employees as they may not be able to transfer to other brands