Welcome to the National Vision Q1 earnings conference call. My name is John, I'll be your operator for today's call. At this time, all participants are in listen only mode. Later, we will conduct a question and answer session. During the question and answer session, if you do have a question, press zero one on your touch-tone phone. As a reminder, the conference is being recorded. Now I'll turn the call over to David Mann. Thank you, and good morning, everyone. Welcome to National Vision's first quarter 2022 earnings call. Joining me on the call today are Reade Fahs, Chief Executive Officer, and Patrick Moore, Chief Financial Officer. Our earnings release, issued this morning, and the presentation, which will be referenced during the call, are both available on the investor section of our website, nationalvision.com, and a replay of the audio webcast which will be archived on the investor's page after the call. Before we begin, let me remind you that our earnings materials in today's presentation include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the release and in our filings with the Securities and Exchange Commission. The release in today's presentation also includes certain non-GAAP measures. Reconciliation of these measures are included in our release and the supplemental presentation. We also would like to draw your attention to slide two in today's presentation for additional information about forward-looking statements and non-GAAP measures. As a reminder, National Vision expects to provide certain supplemental materials or presentations for investor reference on the investor section of our website. Now, let me turn the call over to Reade. Thank you, David. Good morning, everyone. Thank you all for joining us today. I hope you all are staying safe and healthy. The pandemic era has brought swings of both opportunity and challenge. There have been multiple chapters, and with our resilient business model, along with our dedicated management team, we have successfully navigated and adapted to each one. The chapter we are in now is one of the challenging chapters. The historically consistent optical category is experiencing the impact from macro headwinds and a temporary disruption to the purchase cycle. The headwinds, including the recent surge in inflation and weaker consumer confidence, are leading to demand softness for our lower income, predominantly uninsured customers, especially when compared to record demand last year. Since our last call, we believe macro headwinds have caused a real shift in our consumers' behavior. Additionally, emerging constraints to our exam capacity affected customer traffic in many of our stores. While we have delivered a record level of optometrist hiring thus far this year, our exam capacity is temporarily out of sync with our needs. This is primarily due to the impact of a modestly lower level of optometrist retention, coupled with the start date of many new hires occurring later in the year. Both of these challenges are substantially consequences of the COVID era and had significant impact on our first quarter performance and updated outlook for fiscal 2022. For the first quarter, net revenue decreased 1.2% versus our record Q1 sales last year. Adjusted comparable store sales declined 6.8% compared to the strong 35.8% increase in the first quarter of 2021. We delivered adjusted EPS of $0.33. Patrick will provide more detail on our results and outlook in a moment, but I wanna emphasize that we believe that the challenges we are facing are temporary. Our team is laser-focused on overcoming these headwinds, and we're taking recruitment and retention actions to improve exam capacity, including the acceleration of our remote medicine initiative. We believe remote medicine will help to address our ever-present need for optometrists to keep up with the demand for eye exams at our locations. The optical category has a history of consistency over time, and we believe that the future will see a return to a more stable and predictable environment. Our long-term confidence in the health of our model remains unchanged as we remain a low-cost provider of a medical necessity. Turning to slide five. As the chart shows, prior to the pandemic, our business demonstrated consistent performance over time, even amidst broader economic challenges. During the Great Recession of 2008 and 2009, our business generated comps in the positive low to mid-single digits. In this current environment of higher inflation and lower consumer confidence, we believe that our value offering should be even more appealing to an even larger slice of the American public. We believe that once consumers have tried our value price products, it will be hard for them to ever go back to paying higher prices again. I would note that this week, after significant consideration, we implemented our first pricing change to America's Best signature offer in over 15 years. We now offer two pairs of eyeglasses, including a free eye exam, for $79.95. I would also add that the signature offer at Eyeglass World was increased to two for $89 during the first quarter. We feel these actions are appropriate given the current inflationary environment. Even with these increases, we're proud to continue to deliver industry-leading value to our consumers. On slide six, the chart of quarterly comps highlights the volatile comp performance caused by the pandemic over the last two years. Turning to slide seven. The comp volatility was especially pronounced in the first quarter, as the chart in the upper left corner shows, but it is also equally, if not more volatile in the second quarter. During the pandemic era, the consistency and predictability of the optical purchase cycle was disrupted, and this trend continued in the first quarter. As we noted on our last call, our store operations and customer traffic this quarter were negatively impacted by the COVID surge at the beginning of the year. Since our call, we believe optical consumer demand was further affected by inflationary pressures and a decline in consumer confidence, as well as lapping government stimulus from last year. The softness is noticeably more pronounced for our predominantly uninsured customers who are paying out-of-pocket for our products and services. We believe that this slowdown in demand has been felt in most of the category in March and April. Those of you who have been following us for years have heard us say that we are always seeking more optometrists, as the optical consumer journey typically begins with an eye exam. This has been more true recently. In the first quarter, we experienced constraints in exam capacity in some locations, and by that I mean specifically that in some locations we could not fulfill exam demand that is there due to the lack of available optometrists. Some of these constraints relate to pandemic factors, such as scale backs in days worked by individual optometrists or a modest downtick in optometrist retention, and some relates to the mix and timing of new optometrist arrivals. Although our level of optometrist retention has declined since the record high pre-pandemic, it still remains within historical bands. We have multiple recent initiatives to drive retention, which are being executed by a new level of clinical management and the early signs that these initiatives are encouraging. In terms of hiring, we've been investing more heavily in recruiting programs. These efforts are leading to enhanced hiring trends as this year thus far has been a record year for the hiring of optometrists. However, many of the new hires will not begin to practice until late this summer. Thus, there's a timing lag between hiring and start dates. We currently expect these disruptions to impact our business performance for the next couple of quarters. Our team is working hard to quickly expand our exam capacity to mitigate this impact. Amidst this, we see our remote medicine initiative as a way to address our exam capacity constraints, and thus we are accelerating its rollout. We are now targeting to operate remote medicine in up to 300 stores by year-end, up from the previous goal of at least 200 announced last quarter. We are extremely pleased with the increasing exam capacity being added by remote medicine and the role it can play in serving more patients across both geography and time. Despite the temporary challenges facing our business, we remain confident in the long-term strength of our business model based on the following. Our business has shown tremendous consistency and resiliency over long periods of time. This is a benefit of being a low-cost provider of a medical necessity. We operate in a highly fragmented industry with ongoing positive trends, such as an aging population and increased eye strain from such things as increased screen usage. Our customers need to see to get through their lives. As their eyes continue to worsen over time, vision correction issues eventually need to be addressed. Similar to past periods of volatility, we expect the category will eventually revert to its historical cycles. Shifting to slide eight. In addition to our exam capacity and remote medicine efforts, we continue to progress our core growth initiatives. New stores remain a primary focus as we continue to see a sizable white space opportunity. We are off to a solid start with 17 openings in the first quarter, including two Eyeglass World locations as we ramp up expansion of this brand. We continue to plan to open at least 80 stores in 2022, and currently have a solid pipeline of specific locations for this year and into 2023. Marketing, along with the positive word of mouth from happy patients and customers, continues to be a key factor in driving traffic to our stores. We compete in a marketing-intensive category, given the infrequent purchase cycle for eyeglasses. We believe our value messaging will resonate with consumers in an environment of high inflation. While we aggressively invested last year to maximize share growth as well as run marketing tests, in 2022, our team is more focused on optimizing our marketing investment. Our participation in vision insurance programs continues to be a positive revenue driver, especially in the current environment. In the first quarter, we experienced solid growth in sales tied to vision insurance as insured consumers, because the insurance funds most of or all of their purchases, are not deterred from shopping in a tight economy. Our comps related to managed care grew in the positive low double digits. Let me repeat that. In the first quarter, our comps related to managed care grew in the positive low double digits. We remain underdeveloped relative to the category and continue to see an ongoing opportunity here as managed care dollars and co-pays tend to go further in our stores than elsewhere. At this point, let me turn the call over to Patrick for a more detailed discussion of our financial results and the 2022 outlook. Thanks, Reade, and good morning, everyone. First, I want to echo Reade's confidence in the underlying health of our business, and that we view the current issues as shorter term in nature. In the interim, the team is focused on what we can control, continuing to invest in key growth initiatives and appropriately realigning cost to our revenue outlook. Now let's turn to slide 10. As a reminder, the first quarter of 2021 results had the tailwinds to revenue and profitability from pent-up demand from store closures, the benefit of government stimulus, and an elevated average ticket. In Q1 2022, net revenue decreased 1.2% compared to 2021 due to the Omicron impact, macroeconomic headwinds, the constraint to exam capacity and the exceptional growth last year. The timing of unearned revenue benefited revenue growth by 0.2%, which was better than expected due to the volume of sales in the final week of the quarter. Compared to 2019, net revenue increased 14.4%. During the quarter, we opened 15 new America's Best stores and 2 Eyeglass World stores for a 5% increase in store count. For our America's Best and Eyeglass World growth brands combined, unit growth increased 6.8% over the last year. Adjusted comparable store sales declined 6.8% versus 2021 compared to a record 35.8% increase in the first quarter of 2021. Q1 comparable store sales were impacted primarily by a decline in customer transactions. Average ticket declined slightly year over year, but increased sequentially from the Q4 ticket level. We are encouraged by the fact that our average ticket has stabilized, primarily helped by pricing actions and successful product introductions like blue light. Turning to slide 11, as a percentage of net revenue, cost applicable to revenue increased 260 basis points or slightly above our expectations for a 220-240 basis point increase. The increase was driven by deleverage of optometrist-related costs, decreased eyeglass mix, and lower eyeglass margin associated with the year-over-year decline in average ticket. Adjusted SG&A expense percent of net revenue increased 110 basis points. The key factors behind this increase were the deleveraging of advertising, store payroll, and occupancy expenses from lower revenue, partially offset by lower incentive compensation. We expect advertising in 2022 to be maintained at a similar percentage of revenue as 2021, with the potential to be slightly leveraged for the year. Adjusted operating income decreased 33% to $45 million, and adjusted diluted EPS decreased 32% to $0.33. Compared to 2019, despite the challenges this quarter, adjusted operating income and adjusted diluted EPS were up 6% and 7% respectively. Now turning to slide 12. Our balance sheet and liquidity remain strong. At the end of the first quarter, our cash balance was approximately $315 million, and total liquidity exceeded $600 million when including available capacity from our revolver. We ended the quarter with total debt of $578 million. Net debt to adjusted EBITDA was 0.9 x compared to 1.2 x at the end of the first quarter of 2021. We funded $28 million in capital expenditures that were primarily focused on new store and customer-facing technology investments and remain on track for 2022 CapEx in the range of $110 million-$115 million as we continue to invest in key growth initiatives. With our free cash flows and considerable cash position, we continue in our shareholder return program. Year-to-date through May 6, we repurchased 0.5 million shares for $19 million and have $111 million remaining under the current share repurchase authorization. Since the inception of our share repurchase program last November, we have repurchased 1.9 million shares for $89 million. Regarding our inventory position, we are comfortable with the current level and its ability to support our 2022 growth plans. Our efforts to mitigate supply chain disruption continue to be affected to date. At the end of the quarter, inventories were $127 million, and inventory per store grew less than 2% on a year-over-year basis. Our merchandising and distribution teams continue to execute extremely well to help us manage through the current challenging supply chain environment. Overall, we believe that our financial strength and our commitment to invest in our business remain a competitive advantage. Turning now to our outlook on slides 13 and 14. I'll conclude with some commentary regarding our updated 2022 outlook, which we included in today's earnings release. The operating and macro environments are extremely uncertain. The updated fiscal 2022 outlook reflects the currently expected impacts related to macroeconomic factors, including the ongoing COVID-19 pandemic, inflation, geopolitical instability, and risk of recession, as well as constraints on exam capacity. The outlook assumes no material deterioration in the company's current business operations as a result of such factors. The current environment is difficult for forecasting as visibility is quite challenged. As a result, we have taken a more conservative posture to the updated outlook and have incorporated wider ranges reflecting specific planning scenarios. The wider range of assumptions are driven by the unprecedented market conditions that reduce our ability to predict demand with a normal level of certainty, given the real shift in the consumer and the disruption of the purchase cycle. Against the backdrop of what we know today, our updated 2022 outlook projects net revenue between $2.01 billion and $2.07 billion, adjusted comparable store sales growth compared to last year in the range of -4% to -7%, adjusted operating income between $85 million and $105 million, and adjusted diluted EPS between $0.65 and $0.80, assuming 82 million weighted average diluted shares. Let me share some underlying assumptions in our outlook. The high end and the low end of the comp and revenue ranges represent two potential scenarios for consumer demand for the rest of the year. At the high end of the ranges, we are assuming a modest level of recovery for consumer demand in the second half, including the back-to-school season, as well as improvements in exam capacity. At the low end of the ranges, our comparable store sales and revenue assumptions essentially reflect very limited demand recovery, as well as a lower degree of exam capacity improvement. In terms of operating expenses, we've taken smart tactical actions to align costs with the revised revenue outlook, primarily in store payroll, advertising, and corporate overhead. However, we are continuing to invest in the business and key initiatives, and our store growth and capital expenditure plans remain unchanged. Our ongoing commitment to investment is further evidence of our confidence in the future prospects of the business. As we have done in the past, I would like to provide additional color given the unique comparisons to 2021. In the second quarter, we are facing a continued year-over-year challenge from the record results and government stimulus last year. Quarter- to- date revenue trends have been negatively impacted given the macro headwinds and exam capacity. Our outlook assumes comps in the negative low teens and modest profitability for the second quarter. For the second half, we now expect comps to be in a range of negative low single digits to positive low single digits due to easier comparisons, moderating average ticket pressure, and increased exam capacity. Store openings this year will continue to be predominantly America's Best locations, coupled with a doubling of Eyeglass World openings. We are on track to open at least 80 stores, and the openings are expected to be evenly spread over the year. We project a few closings as is typical each year. Let me share a couple of other factors assumed in our outlook for 2022. We are excited about the accelerated rollout of our key remote medicine and EHR initiatives and continue to anticipate incremental dilution in the range of $6 million. We continue to expect the timing of unearned revenue will have a negative impact in 2022. We currently estimate this impact to adjusted operating income to be about $9 million. As a reminder, unearned revenue recognition is a 7- to 10-day timing impact that can affect our quarter to quarter and annual comparisons. For full year 2022 as a percentage of net revenue, we expect cost applicable to revenue to increase 350- to 375 basis points versus last year, primarily due to the deleverage of fixed costs as well as the lapping of last year's record performance that benefited from product mix shift and an elevated ticket. For Q2, costs applicable to revenue are expected to increase about 400-450 basis points versus last year. In terms of expenses, we would expect 2022 adjusted SG&A to increase between 125-150 basis points as a percentage of net revenue year-over-year. The SG&A increase primarily reflects sales deleveraging and, to a lesser extent, higher levels of wage investments. To assist with modeling, we have also provided additional assumptions on depreciation and amortization, interest, and tax rates. As Reade stated earlier, we have successfully navigated several unique chapters during the pandemic. While the current chapter is one of the more challenging, I have every confidence in our business model, value proposition, and our management team to take the necessary actions now to return the business to a growth trajectory. At this point, I'll turn the call back to Reade. Thank you, Patrick. Turning to slide 16 and our moment of mission. As we continue our ESG journey, we are continuing to invest in our associate experience to ensure that National Vision is providing a life-giving, fulfilling workplace. We received the results of our first associate experience survey this quarter. This is an important additional way for us to have an ongoing dialogue with our associates and to continuously improve our work environment in the ways that will matter most to our associates. We were quite pleased with the results and encouraged to confirm that associates feel we are doing many things well already. Some quick highlights. 92% of associates are proud to work for National Vision. 90% feel good about the ways we contribute to the community. 93% clearly understand how their job contributes to achieving the goals of National Vision. Importantly, 90% have confidence in the future of National Vision, which is significantly above U.S. benchmarks. In these highlights and throughout the survey results, we see tremendous alignment among associates on some of the core values that we feel make National Vision successful. I'd like to conclude by sharing my heartfelt appreciation to the entire National Vision team for their continued resilience, hard work, and their commitment to patient care and customer service during these challenging and dynamic times. In summary, the key takeaways from today's call are these. After 18 years of consistency and predictability, the pandemic era has temporarily made the optical market, and consequently our business, more volatile. We believe that the marketplace over time should return to trends more consistent with the pre-COVID era, especially as our customers' vision only continues to get worse with time and we remain a low-cost provider of this medical necessity. We believe that several initiatives, including our remote medicine rollout, should help us to get our exam capacity more in line with the demand that is there for exams at our stores. Thus, although we are currently in one of the challenging COVID-era chapters, our confidence in our mid- and longer-term prospects remain unchanged. With that, I'd like to turn the call back to the operator to start the question-and-answer portion of the call. Thank you. We'll now begin the question-and-answer session. If you do have a question, press zero then one on your touch-tone phone. If you wish to be removed from the queue, please press zero then two. If using a speakerphone, you may need to pick up the handset first before pressing the numbers. We ask that you have one question and then one follow-up. Once again, if you do have a question, that's zero then one on your touch-tone phone. Our first question is from Simeon Gutman from Morgan Stanley. Go ahead, Simeon, with your question. Operator, it seems we have a problem with that question. Can we go to the next question, and we'll come back to Simeon? Yes. Our next question is from Michael Lasser from UBS. Good morning. Thanks a lot for taking my question. Can you quantify or frame how much of the challenge is associated with macro pressure on the lower-income consumer versus the capacity constraints that you spoke to? Perhaps you could do it in the context of the guidance for the second quarter, for the comp, which is obviously gonna be much lower than the first quarter despite having less of the difficult stimulus comparison in this period. Yes, Michael. Thank you. Thank you for the question there. We would say it was somewhat balanced between the economic factors and the OD capacity factors. In Q2, we took that into account when we're up against the higher stimulus for Q2. Recall that last year, our Q2 comp was 77%. That was a combination of the closures from the prior year and the stimulus overall. I would say, you know, some of these things are interrelated, but you know, the consumer, especially in March and April, really slowed down, especially our lower-income uninsured consumers. Understood. My follow-up question is, to the extent that pressure on the availability of optometrists persists, to what degree does that structurally pressure National Vision's margins over the long term, and how will you manage through that? Will you continue to need to raise prices in order to offset it? What type of elasticity do you expect to see in response to the price increase for your core offer? Thanks. Hey, Michael. Good morning. It's Patrick. I'll take the bulk of that, and then, if Reade would like to add anything, that's good. You know, we've managed through several years of OD wage pressure, and it generally never comes in a ubiquitous national fashion. It generally comes in, you know, specific markets, even specific cities. I think we've gotten pretty decent at being able to work through those. You know, I would assume that we're gonna continue to see a little more of that as we have over the last few years. Frankly, you know, as we've done at that time, we've looked to offset those pressures across other areas of the P&L. You know, for example, we pick up some degree of economies of scale benefits in our lab cost each year. This will not be a new game if in fact this is what happens. Second, I would just mention we did take some steps last year and made wage adjustments for our optometrists. We kind of discussed that in November. In terms of how I think about the pricing and the elasticity, you know, we've certainly modeled all of that into guidance. We are going to expect some modest degree of short to medium-term demand impact. Although I will say, as we rolled out our EGW increases, we really didn't see that. We have modeled in some degree of elasticity and, you know, that's in our guidance. Yeah. Michael, can I build on what Patrick said there? First of all, we expect capacity to improve. As I said, we have record hiring. That retention versus the end of the year is encouraging. I'd like to emphasize one of the key things that we're excited about in our remote medicine initiatives is how that addresses localized OD concerns because our ODs are sort of more fungible over space and time. That's why we accelerated. I think in last quarter, we talked about 200 remote openings this year, and we expect to be up or close to 300 by the end of the year with that. Again, we expect capacity to improve. We also are seeing the beginnings of trade down. I think many people have heard the expression that we used during the recession, the last recession, where we'd call stores and ask, why are they doing so well? A frequent thing we heard was the term nicer cars in the parking lot. We are starting to see the beginnings of nicer cars in the parking lot, as happened the last time of economic uncertainty and challenge. Thank you very much, and good luck. Our next question is from Zach Fadem from Wells Fargo. Hey, good morning. Can you talk through the moving parts around the added 130 basis points of gross margin pressure versus your initial expectations last quarter? How do you square the positive impacts of price increases with the added pressures you're seeing from optometrists costs, the remote medicine investment, and the other de-leveraging items to bridge that gap? Yeah. Good morning, Zach. We essentially saw some de-leveraging of fixed cost even inside of gross margin. Recall that our lab networks are in there, and there's some degree of fixed cost, so that was deleveraged to it a bit. We also, you know, in general, were expecting to see some degree of de-leverage of optometrists, eyeglass mix, and lower eyeglass margin. All of those showed up. I would point to mainly some of the fixed costs that actually live in gross margin. It's not large, but we did see impact from that in the quarter. Got it. Can you talk a bit more about the thought process behind changing the America's Best signature offer? Why is now the right time to pull this lever? Can you also talk about, you know, after implementing this change, to what extent does your price competitiveness now change in the market versus your peers? Good. The decision to raise the headline price has been under review and discussion for a while here. Frankly, it also takes a while to execute something that complicated between all the marketing messages, all the signage, and that sort of thing. We've been considering this and working on this for a while now. We are still a great value leading low-cost provider of a medical necessity. We believe that the market gap between us and our competitors is going to widen further in an inflationary environment because we are generally the slowest to pull the pricing lever versus most others in our category. To reinforce, this has been our headline price for over 15 years, okay? Over 15 years. As Patrick said, we have built in the expectation of potential a near-term impact to traffic, but we did not see that with our Eyeglass World move. Thanks, Reade. Appreciate the time. Our next question is from Simeon Gutman from Morgan Stanley. Hi, this is Jackie on for Simeon. Can you guys hear me okay? Yes, we can, Jackie. Perfect. Sorry about that. We were having some technical difficulties. Our first question, if we were thinking about bridging from 2019 to 2022, you know, what are the incremental costs coming in and out of the base? You know, I think 2022, Jackie, becomes a difficult year to bridge to. I mean, just quite frankly, we have seen, you know, fairly significant impacts from the factors that we called out, deleveraging some costs in Q1. You know, in general, if I think about what costs have risen over that timeframe, we've seen some incremental wage pressure for associates, which is fairly consistent with most retailers. We spent a little more on advertising as a percentage of revenue last year. I think this year, we still have a good shot to be flat to last year, maybe even leverage a bit. All of the cost of sales elements are frankly the same. We have long-term contracts with vendors and have not experienced any significant pressure there. You know, probably the number one item is just wrestling with some of the wage pressures that we've seen across in retail. Gotcha. That makes a lot of sense. Just as a quick follow-up, is the price increase built into top-line guidance, and are there any further increases planned? Thanks again. Yes, the top line increase is built. Think about it, this is, you know, one of many offers. This is our core base offer, and now the 2 for $79. We've talked about, you know, what percentage of our customers take that over time. It's not a tiny number. It's not a huge number. We're looking at about, you know, a solid half year or so impact to that. Yes, it's in guidance. It's not moving the needle in any huge way this year. Gotcha. Thanks so much. Our next question is from Chris Neamonitis from Jefferies. Great. Thanks, everyone. Just wanted to ask quickly about the eye exam constraints. Could you maybe go a bit deeper into that and maybe quantify how many of your optometrists are currently at capacity? Maybe one more to add on. Are you expecting that blocked out demand works its way through throughout the balance of the year, meaning that you'd expect it to catch up? Are you expecting consumers to forego their eye exams? Yeah. To be clear, the exam capacity is not about individual doctors achieving capacity. It's about not having enough doctors for the demand we have. It is a very nice problem having the consumer demand, again, value-priced, low-priced provider of a medical necessity. It's about having doctors, incremental doctors there in the geographies where we need them in order to fill the consumer demand that is there for us, even in these challenging times economically. Yes, we expect capacity to improve, record hiring, but start dates more later in the summer. Remote medicine is going to help us as well as we have more and more stores there. That is a great way of adding capacity. Just for perspective, if that's how this works, you know, when we open a store historically prior to remote, we'd open it with one lane and one doctor and an empty room next door. As the store ramps, we fill the second room with exam equipment, and the doctor goes back and forth and is more efficient. As the volumes continue to ramp, we put in a second doctor, occasionally even a third doctor. We're putting in remote medicine now, which will help with stores where we can't find a second doctor. That will help on the doctor's days off if someone calls in sick or vacations, whatever. Remote is a very versatile solution to something we've been talking about since our IPO roadshow, where we have been saying we never have enough optometrists, and you're probably never gonna hear from us that we have enough optometrists. With remote, who knows? We may be able to get close to that state. Hey, Chris, I would also add, as we've looked at remote, watched our initial results. We did announce today that we're accelerating from being in 200 locations this year to 300. That really tells you we're pretty happy with what we're seeing. We're happy with the initial economics. In fact, note that we're moving from 200 to 300, but we did not update the dilution figure of about $6 million. We're really pleased with how that's going internally. We continue to resource that and even accelerate it, and we think that's gonna play a really large role in capacity going forward. Yeah, that's great, and I think that's a great proof point for remote. Maybe another on just the lower consumer confidence. Sounds like ticket actually improved quarter-over-quarter. I guess I'm surprised why that didn't come down as well. Maybe why wouldn't the trade down effect you talked about earlier serve to offset some of that lost volume in the quarter and maybe April- to- date? Our Q1 average ticket was above 2019 and showed an increase versus Q4, but we're up against just stimulus-infused spending last year, which did grow the average ticket. We're pleased, sort of since the stimulus declined, our average sale did decline, but it stabilized at a place that we were happy with. We also took some peripheral pricing actions in Q4 that also helped to stabilize that as well. In terms of sort of the nicer cars in the parking lot, like, it's not really a light switch, you know? It's sort of a gradual thing. Our low-income, uninsured consumers, sort of their piece was more light switch, like in terms of, as they saw, you know, throughout March, as sort of the ground war in Europe played on and worries about gas and seeing that at the pump and worried about food prices and seeing that at the grocery store, they got that consumer got very concerned. We think the nicer cars is a gradual thing that we're starting to see the beginnings of and that we have historical precedent for to continue to expect progress there. That's great color. Thank you. Our next question is from Paul Lejuez from Citi. Hey, thanks, guys. Can you talk about the stores where you've already rolled out the telemed, the docs and how the performance might be different in those stores versus the rest of the fleet? Just how far along are you in rolling those out? Second, you know, we can see the change on the core offering on both America's Best and Eyeglass World, but I'm curious what sort of price increases are happening in the rest of the assortment. Patrick, could you just remind us the percentage of your business that's typically done on that opening offer? I have 20% in my head, but if you could just remind us of that. Thanks. When you say in the rest of the assortment there, what do you mean in our other brands or in the category? The rest, if 20% of your business is done at that opening offer price point, and we could see the change that you're making from a price point perspective on that, what's happening in the rest of the business? Yeah, I think in the industry, we are seeing multiple competitors raise price. It's not surprising. Paul, you're right. We disclosed that figure a while back. It was less than 20%. I think you're still in the guardrails there as you think about that kind of high teens figure. That's probably a good place for you to be. High- teens figure, but higher for the uninsured consumers. In terms of remote rollout, you know, our remote teams can tell you we're measuring that every way possible. We like what we're seeing. We're clearly able to identify incremental capacity and incremental utilization of the remote. Now, while we're rolling it out, it does, you know, in the store that it's being rolled out in, it can slow things down for a little bit as you get people trained. Then a new remote doctor doesn't immediately become perfectly productive as a remote doctor for some period of time. There is a gradual ramp curve in terms of store moving from, okay, it's now remote and EHR enabled to it is very capable. That's, you know, that's weeks kind of a curve there. We've been happy with what we've seen and hence the acceleration. A reminder, when we roll out remote, we also put in electronic health records, so the store becomes fully digitized. There is again a couple week adjustment period, which you'd expect. Right. Just to clarify, you know, you're taking your that opening price point up by a double-digit percentage increase. Is that fair to assume that you're taking the entire assortment up, you know, by double-digit, as well across all, you know, price points? No, no. Uh-uh. Yeah, that's just no. The other pricing has been very peripheral in nature. Okay, thanks. Good luck. Our next question is from Bob Drbul from Guggenheim Securities. Hi, good morning. Just a couple of questions from me. Can you talk about the trends in the legacy segment and, you know, just sort of what you're seeing there, you know, if it's any different from your core AB or EGW. Then on the remote initiative, are those in terms of your adding those to stores also going into some of the legacy segments? Just curious if you could help us understand that a little bit better. Thanks. Remote is starting in AB, and we also have some of it in America's Best, and we have some of it in Eyeglass World. We have small early stage experiments in Walmart-related pieces, but that's all small. When we talk about the aggressive expansion of remote, you should see that as primarily America's Best. But we do anticipate that over time, it will be just a part of how we do business overall. Our legacy group, our Walmart group, performed a little better in Q1 than America's Best and Eyeglass World. Their compares weren't quite as steep there. Frankly, while we're talking about hosts, I'd like to point out, I know we almost never talk about Fred Meyer. Fred Meyer did comp positively in the quarter. I only bring that up because Fred Meyer has the highest managed care business for us, and that was what drove that. Okay, great. Just one other follow-up. In terms of the industry, are you seeing, you know, sort of a re-expansion or, you know, the independents where you saw a contraction in the industry of independent optometrists? Is that part of the challenge in terms of, you know, you meeting the OD demand that you need? Is there a change going on in the industry, you know, around that ballpark, or is it essentially just more competitiveness of the industry on the OD side of it? In general, the industry trends overall are in line with what we've been talking about for the past several years, that chains are growing, value chains are growing, and that has been ongoing. It's hard to get data on the pricing of independents. I know they're not getting any more competitive value-wise, but I know that independents in general are facing a lot of staffing issues. That's a big challenge for them. When I say that I believe that in this environment, the gap between us and the rest of the market is gonna remain or expand in terms of the value we provide, it is my estimate that the independents are going to be pulling the pricing lever a lot more. Great. Thank you. I would just add, I think the other thing that you have to think about is really not just last year, but the year before, what were those other companies or independents doing at that time? You'll see reports where independents are trading up, and you have to quickly ask, "Well, what how do I think about that over the last two years? Is it a really easy comp? Is it a harder comp?" I think that some of the things and some things that are affecting our doctors are obviously affecting independents. Yeah. Thank you, guys. Our next question is from Adrienne Yih from Barclays. Good morning. Reade, I guess I'm trying to figure out what was the working assumption a quarter ago about the optometrists and how they would, you know, what capacity utilization it would have on them, and what changed during the quarter? Kind of the wrap-up on that would be the increase in the 100 stores of the remote utilization. Will that make up for the shortfall that you're now seeing? On balance, we would be similar to the optometrist, you know, usage that we were at the beginning of the year. That's the first question. Okay. It was a little hard to hear sound quality-wise, but I think I've got that. You know, sort of a little bit was what's changed relative to OD since our last call. You know, Q1 was an especially challenging time to be reading sort of OD capacity and the like. In the early part of the quarter, we had doubled the number of optometrists out with COVID versus the highs of the first wave of COVID. Again, as optometrists, we had double the number of associates as well. It's just math. It wasn't anything about optometrists in general. Yeah. Frankly, in March, we also saw vacations of optometrists at twice the rate that we would normally expect. All of this, you know, we were amidst seeing the strongest hiring year to date that we've had. Although the retention was not at the 2019 record levels, it was still very much within historical bands. I will say, you know, sort of in terms of a little bit of the psychology of this, and I think we're seeing this for all manner of workers. You know, a lot of optometrists were thinking about work-life balance, asking for another, you know, a day off, maybe wanting to work four days instead of five days. Again, that's something that affects capacity. Again, one of our key excitement about remote is it really does tie into sort of post-COVID trends. I wouldn't be surprised if many of you are working from home right now, sort of people wanting more flexibility in the geography of where they practice, and remote allows people, optometrists to practice for the first time ever from their den or home office or whatever. All this ties together in that way. Okay. The second part of that the question was the additional 100 stores, does that fill the gap? If those are successful, how quickly can you ramp? I know you have this theory of 4,400. This would get you close to that. How quickly can you ramp faster than that? As Patrick sort of mentioned a moment ago, you know, we launch it, and it's a few weeks to get used to it in the stores, and the doctors themselves take a few weeks to get used to it. Again, we were at 200 that we said a quarter ago, and we think we'll be sort of as much as 300 for this year now, so we are excited by this and behind it in a nice way. Again, in terms of addressing the problem we have now, sort of the new hires, again, record number of new hires, but they don't start till more like, you know, mid to late summer, so that will the cavalry will be arriving then. Okay. My final topic is just on demand. Was there a point at which you saw demand fall off? I mean, clearly in general consumer, April was the month where it became very evident. It was late March, and then April became very evident that something happened. I'm wondering if that pattern was true for you. You know, this managed care piece of the business that maybe can fill in some of the, you know, demand, you know, the demand weakness at the uninsured level, what can you do and what are you doing to increase penetration there? What programs are accelerating managed care? Thank you very much. Right. By the way, the first question especially was a great question. Yes, we saw some slowing in late March, but something happened in April. Something happened to the optical category overall in April that was noticeable. We're sitting here saying as we're trying to put together this earnings call, "So how long does it last?" Our guidance is based on, you know, in a world like this, you got to sit there and say, "I don't know when the war ends. I don't know when inflation ends. I do know the nicer cars are coming. That's good. I do know the ODs are showing up later in the year. My peers and I in April were saying, "Something just happened." What that means, broader, I can't. I can only speak about the optical category. I do know this about the optical category. The eyes, the biology of the eyes gets worse. The biology of the eyes does not care about ground wars in Europe, the biology of the eyes does not care about what's happening in inflationary trends. The biology of the eyes, the eyes get worse over time and eventually need to be addressed. This is why, as the low-cost provider of a medical necessity, we believe that this will right itself, and we will eventually get to a more consistent period more like the 18 years leading up to the pandemic than the weird volatility that we've been experiencing since the pandemic. Great. The managed care? Sorry to keep- Oh. Oh, no, no. I'm sorry. I'm sorry. Yeah. Even managed care can help. There are some things we can do to drive that. It is growing. Managed care did have positive comps in the quarter. There are actions we can take to improve that. Yeah. I don't like to share that, you know, for competitive reasons overall. Fair enough. Thank you very much, and best of luck. Thank you. Great question. Our next question is from Molly Baum from Bank of America. Hi, guys. Thank you for taking my question. I'm on for Robbie. He's at Investor Day today. I wanted to just ask, you know, a few follow-ups on some of the questions about trade down and what you guys have been seeing. You know, there's been a mix this earnings season with retailers on whether or not they've seen trade down. I'm just curious if, you know, there's any quantifiable ways to measure, you know, what trade down you've seen or if it's still kinda too early. Then, you know, within your existing customer cohort, are you seeing trade down, you know, to the introductory offer, or is that not something you've really seen either? Thank you. Let me talk about trade down from a customer perspective. Again, sort of, in sort of the year following our reopenings, sort of the drive was more driven by our lower income customer who was very flush with cash from the stimulus. Now we are, as we said, starting to see the beginnings of wealthier customers than normal coming back and becoming a larger part of our mix. In terms of... We're not seeing any unusual mix within the store of what people are buying right now, except for, as you know, we did launch NeverBlue about a year and a half ago, and people are buying that in nice amounts. But nothing unusual in terms of what people are purchasing mix shift. We've talked in the past about how people are buying nicer contact lenses. That's more driven by new technologies and optometrist excitement and new modalities, but that's been an ongoing trend for, like, you know, couple years. Got it. Thank you. That's very helpful. We have no further questions at this time. Good. Well, John, thank you very much for your management of this call. For all of you listening this morning, we'd like to thank you all for joining us here today and to thank all of our stakeholders for your continued support. We look forward to speaking to you again when we report our second quarter results. Thank you all very much. Thank you, ladies and gentlemen. That concludes today's call. 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