Key Takeaways
National Vision Holdings, Inc. (NASDAQ: EYE) is under investigation by law firm Johnson Fistel for securities law violations after its stock plunged 25% on May 13.
The investigation focuses on whether the company misled investors regarding customer traffic and its digital platform transition, according to a statement from Johnson Fistel.
The optical retailer’s shares hit a new 52-week low after it disclosed that issues with its America’s Best website replatforming disrupted search optimization and online exam bookings. The company’s first-quarter revenue of $543.9 million and same-store sales growth of 4.4% both fell short of analyst expectations.
The 25% drop to $15.63 erased a significant portion of the company's market capitalization, raising questions about the impact of the botched digital transition on the company's reiterated full-year guidance.
Johnson Fistel’s probe centers on the company’s May 13 earnings call disclosures. National Vision stated that its recent website overhaul led to a "reset" in digital traffic and that a technical glitch meant that when exams were booked, "the signal is not going back to Google to inform them that the exam has been booked," creating inefficiencies.
While the company missed on revenue and same-store sales estimates from FactSet, it did report a profit beat. First-quarter adjusted earnings per share were 45 cents, two cents ahead of consensus. The company's profit grew to $31.2 million from $14.2 million in the same period a year earlier.
National Vision reiterated its fiscal 2026 outlook, expecting revenue of $2.03 billion to $2.09 billion and adjusted per-share earnings of 85 cents to $1.09. This guidance brackets analyst expectations for $2.08 billion in sales and 99 cents in adjusted earnings.
The investigation adds a layer of legal and financial risk for shareholders, who now face uncertainty beyond the operational challenges of the digital transition. Investors will be watching for any formal lawsuit filing and the company's Q2 results for signs of recovery in customer traffic.
This article is for informational purposes only and does not constitute investment advice.
