Day. Thank you for standing by. Welcome to the Q1 2026 National Vision Holdings earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today, Tamara Gonzalez, Head of Investor Relations. Thank you. Good morning, everyone. Welcome to National Vision's first quarter 2026 earnings call. Joining me on the call today are Alex Wilkes, CEO, and Chris Laden, CFO. Our earnings release issued this morning and the presentation accompanying our call are both available in the Investors section of our website, ir.nationalvision.com. A replay of the audio webcast will be archived in the Investors section after the call. Before we begin, let me remind you that our earnings materials and 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 our filings with the Securities and Exchange Commission. The release in today's presentation also includes certain non-GAAP measures. Reconciliation of these measures is included in our release and the supplemental presentation. We would like to draw your attention to slide 2 in today's presentation for additional information about forward-looking statements and non-GAAP measures. As a reminder, National Vision provides investor presentations and supplemental materials for investor reference in the Investors section of our website. I will now turn the call over to Alex. Alex? Thanks, Tamara. Good morning, everyone, and thank you for joining us for our first quarter 2026 earnings call. We are building a stronger, more profitable National Vision. Q1 is clear evidence that our strategy is working. The work underway on our 4 growth vectors is structural, designed to grow demand, improve ticket, and expand operating margins over time. We're closing key gaps where we are underdeveloped compared to the category with more profitable customers and closing the gap in key product areas, improving the customer and patient experience, expanding our footprint through new stores and channels, and driving operating margin improvement through disciplined cost management. We are raising the bar on the overall experience and building a more seamless digital and in-store journey that supports share gains while reinforcing our value leadership. With our Q1 results, clear initiatives for the balance of the year, and strong execution against our priorities, we are reaffirming our fiscal 2026 guidance. Moving on to our results. In the first quarter, net revenue grew 6.6% to $544 million. Adjusted comp store sales increased 4.5% in line with our mid-single-digit algorithm despite early weather pressure and a choppier macro backdrop that affected our cash pay cohort. Adjusted operating margin expanded 210 basis points to 10.2%, reaching double digits on continued cost discipline and growth in our more profitable customer cohorts. Adjusted EPS increased to $0.45 per share from $0.34 in the prior year quarter. We are executing our growth plan with discipline, we continue to see strong, consistent results that reinforce our confidence in our modernization efforts. With traffic in line with our expectations, our intentional customer mix shift towards progressives, managed care, and outside RX customers continued in Q1 and is supporting stronger comps and more profitable growth. It is important to remember that ticket growth is not just price. It reflects higher penetration of solutions customers value and modernized selling tools supported by improved associate training and clear selling choices. In fact, our cash pay ticket continues to outpace all others as this cohort is adopting our premium products at a faster rate, reflecting the strength of our value proposition, enhanced product assortment, and high-quality eye exams. Compared to a year ago, we are making meaningful progress in this area, and we're still early in the journey. Our progress drove faster, more relevant product flow in Q1. We introduced new private label frame options, pushing select price points above $100, launched Stetson to capture the Western trend, rolled out Swarovski across emerging brands. In April, we launched Kendra Scott sunglasses, a category with meaningful growth potential. The result is continued strength in upgraded frames sold and improved mix of higher ticket items in the quarter. This is not just price. It reflects higher penetration of products customers value and clear selling choices supported by better associate training. Customers continue to choose advanced lens materials such as polycarbonate and high index, along with features like anti-reflective, Transitions, and premium progressive options at a higher rate than last year. As the assortment expands, our selling approach means we do more than add choice. We bring the benefits to life through relationship building, through stronger consultations and in-store education that help each customer find the right eyewear solution. This momentum reflects the product evolution our merchandising team is driving. One proof point is how we are scaling smart glasses with our Ray-Ban Meta launch. It's already resonating. We're seeing strong early demand with Ray-Ban Meta as customers use managed care benefits to support the purchase. Given that demand, we expanded Ray-Ban Meta and Oakley Meta to all America's Best and Eyeglass World stores, as well as online in early April. We also broadened the Meta assortment with products designed to improve comfort, wearability, and performance. We added products from the Ray-Ban Meta optics line for prescription wearers, offering lighter weight, longer battery life, and better all-day wear. Smart glasses are becoming a more important AI-driven category, and we are leading in making these products accessible to our customers and patients. Looking ahead to 2Q, we have several initiatives in the pipeline that will further expand options for customers seeking quality frames and lenses to meet their lifestyle needs. In May, we began piloting a major launch of branded lenses, Nikon Lenswear. Beyond the brand, these lenses offer meaningful quality improvements we believe customers will value. The Nikon Lenswear lenses are available both for single vision and progressive customers. For the single vision customer, the lens is a digitally surfaced lens that allows for better customization and personalization of the lens. The progressive Nikon Lenswear lens is the most advanced Nikon Lenswear progressive lens design and categorized by the insurance companies as a top-tier lens. It delivers sharper vision, a wider field of vision, and a larger corridor for intermediate vision, leading to best adaptation for wearers and an all-around better viewing experience. These lenses will be available at both America's Best and Eyeglass World, and we're proud to offer the highest tier Nikon Lenswear progressive lens in the U.S. market. This is a meaningful step up from what we've offered historically and is our most advanced lens to date. This is a game changer for new progressive wearers, significantly improving their adaptation, which historically is one of the largest pain points in the progressive category. Starting in June, we're adding more premium brand assortments to America's Best with highly sought-after brands like Tory Burch, Polo Ralph Lauren, and Persol. As our assortment becomes more premium and innovative, execution in-store matters even more. Our data shows that customers are highly engaged early in their shopping journey. This month, we're expanding associate training for both Ray-Ban Meta products and premium brands across the full customer journey from purchase to pickup to improve consistency. As we look ahead, we will further enhance our merchandising capabilities and store experience through store segmentation. By understanding the customers who shop at our stores, the purchases they make, and the potential customers who live near our stores, we can tailor product assortments to align with local demand and shopping behaviors. Some expected benefits include enabling us to adjust assortments to customer needs, allowing us to build thoughtful brand mixes for each segment, giving us the ability to establish structured exit plans for brand products that are underperforming or no longer align with our strategy. We will roll this out in 2 phases. America's Best begins in late Q2, with Eyeglass World following in Q4. The goal is simple, let the data guide us to get the right products in the right stores and make it easier for customers to compare and purchase what best meets their needs. This is a key part of our strategy, use customer and market data to localize assortments and pricing. This not only increases relevance at the store level, it unlocks the opportunity for incremental sales as we capture more demand while staying true to our customer-focused strategy. We're applying the same mindset to our digital storefront where scale and personalization matter even more. On digital, we made an important strategic move to re-platform americasbest.com at the beginning of Q2. This is a key step in our unified commerce journey to strengthen our digital foundation, improve the customer experience, and over time, better connect our online and store experiences. A re-platforming of this scale resets parts of the digital storefront, and traffic was disrupted as search and social optimization resets. We're managing this transition anchored in data, clear operating focus, discipline, and a healthy sense of urgency. Importantly, we're seeing sequential improvement in traffic as Q2 progresses. As a result, quarter-to-date comps are tracking in the low single-digit range, and we expect that the initiatives already underway will offset the recent disruptions, reinforcing our confidence in the trajectory of the business and in reaffirming our guidance today. Most importantly, this platform materially improves our ability to serve the roughly 30 million consumers who engage with us online each year. It reduces friction in the shopping journey, especially on mobile, with fewer clicks and fewer steps to complete an order or book an eye exam. Over time, it helps prepare us for a world where AI becomes a more important part of consumer marketing and interaction, including greater personalization, better awareness of tools like online try-on, and faster frame discovery. This is how we build a more seamless omni-channel model with capabilities to support durable e-commerce growth over the long term. As we move into 2027 and beyond, we're building toward a true omni model, including features that lead to a more seamless shopping experience for our customers, like one-click contact lens reorders and more relevant CRM-driven second pair recommendations. While the transition created short-term noise, the strategic value is clear. The recovery is underway and the long-term opportunity is meaningful. In marketing, we're making steady progress and beginning to see tangible returns from the foundational work underway. Our CRM replatform is delivering positive early results, improving performance, and giving us better visibility and control. It is enabling more sophisticated CRM journeys that are more relevant and better timed across the customer life cycle, from post-purchase engagement to reactivating lapsed customers. CRM is where the brand is delivered, and we're strengthening that capability. When the journey is relevant, timely, and personal, brand awareness follows. During Q1, America's Best continued to gain an unaided brand awareness, reflecting a more consistent message and a stronger customer experience across stores and online. The team also made meaningful progress this quarter to strengthen the second half launch cadence and advance the Eyeglass World brand. At America's Best, we're building momentum with our campaign by staying focused on value, clarity, and traffic-driving execution that supports both near-term performance and long-term brand health. As we look at our portfolio of brands, we're continuing to make progress with the Eyeglass World brand repositioning and look forward to updating you on our repositioning efforts later this summer. Alongside that work, we're also strengthening the emerging brands portfolio by expanding where our value proposition is uniquely compelling. We have long been proud to serve the military with quality optical solutions. I'm excited to share that at the end of the first quarter, we expanded our relationship with the Army and Air Force Exchange Service or AAFES, the government entity that operates for-profit stores on military bases. We added 20 new military optical sites, bringing our total to 72 AAFES locations, and we are now the sole optical provider in the U.S. for the Army and Air Force bases. This addition represents an important step in broadening our reach through our emerging brands portfolio. Since the change in operations at the start of April, our teams have been working collaboratively to ensure a smooth, thoughtful integration. These are exciting developments underway. We'll stay focused on execution and driving value as we move forward. In closing, we're building a stronger, more profitable National Vision, one that delivers access, experience, value, and convenience at scale. Q1 was a clear step forward. These results reflect the dedication of our associates and doctors, and I want to thank them for their care, service, and execution they deliver every day. The progress we're seeing across product mix, pricing, experience, and cost discipline is translating into stronger comps, meaningful margin expansion, all while reinforcing our value leadership. We also took an important step in building the digital capabilities that will modernize the business over time, and what we're seeing gives us confidence to reaffirm 2026 guidance. With that, I'll turn it over to Chris to walk through the financial results and outlook in more detail. Chris? Thank you, Alex, and good morning, everyone. As Alex mentioned, our first quarter results reflect meaningful progress against our strategic priorities. We delivered comparable store sales in line with the midpoint of our guidance, expanded operating margin, and drove improved profitability through disciplined expense management while continuing to advance our transformation initiatives. Although the consumer environment remains dynamic, we are confident that our actions are positioning us well for the balance of the year. Before I review our results, as a reminder, my remarks will include certain non-GAAP metrics and would refer you to today's press release for reconciliations of all non-GAAP financial measures to their most comparable GAAP financial measures. For the first quarter, net revenue increased 6.6% with adjusted comparable store sales growth of 4.5% and a positive 2% impact from the timing of unearned revenue. We ended Q1 with a total of 1,274 stores, reflecting the 8 new America's Best stores we opened during the period, as well as the closure of 3 America's Best stores and 1 military store. In addition, our ending store count includes the expansion of our military brand. With our expanded agreement, we added 20 new military stores and are proud to be the sole optical partner on AAFES bases in the United States. We expect these stores to have a similar level of productivity as our current military locations, and we do not expect this expansion to have a material impact on our outlook for 2026. For clarity, these new stores are not included in our current guidance. Adjusted comparable store sales growth in the period was driven by an increase in average ticket of 5.1%, which reflects continued strength in the managed care cohort, along with the continued execution of our pricing and merchandising product mix initiatives. The increase in average ticket was partially offset by a 1.2% decline in overall customer traffic compared to the prior year, as positive traffic for the combined managed care, progressive, and outside RX customer cohort continued to partially offset softer traffic in our cash pay business. These results reflect a sequential improvement from the fourth quarter, despite the impact from winter storms and a volatile macro backdrop. Our eye exam conversion to product sales has remained consistent with prior quarters, which is another key indicator of customer acceptance of our merchandising and pricing transformation. As a% of net revenue, costs applicable to revenue increased approximately 10 basis points. The resulting slight decrease in gross margin was driven by product mix and offset leverage in optometrists related costs consistent with our planning scenario. Adjusted SG&A was $246 million in the first quarter, and as a% of revenue, leveraged 200 basis points. This performance was primarily driven by lower associate related expenses and advertising. Adjusted operating income increased to $55.5 million compared to $41.3 million in the prior year period, and adjusted operating margin increased 210 basis points to 10.2% for the quarter. Net interest expense was $2.8 million compared to $4.6 million in the prior year. This year-over-year decrease was driven by two main items. The first is the reduction in overall debt, and the second is interest received from the IRS, which we will unpack in a moment. Related to the reduction in debt, we repaid $101.3 million, with $84.8 million attributable to the maturity of the convertible notes and $16.5 million in amortization of our term loan. Adjusted EPS was $0.45 per share in the first quarter, up from $0.34 per share last year. Turning next to our balance sheet. We ended the first quarter with a cash balance of $67.9 million and total liquidity of $361.2 million, including available capacity from our revolving credit facility. During the quarter, we collected $10.5 million from the IRS related to the CARES Act employee retention credits, which included $700,000 of interest. This collection settled a long-standing receivable accrued in 2022. Our inventory grew approximately 22% compared to the prior year, primarily driven by investments in frames to support the launch of our store segmentation work, as well as investments in premium brands as part of our ongoing assortment strategy. We feel very good about the health and mix of our inventory in line with our capital allocation strategy. During Q1 2026, we repaid $3.3 million in long-term debt, bringing our total debt outstanding net of unamortized discounts to $241.8 million at the end of the quarter. For the trailing 12 months, our net debt to Adjusted EBITDA was 0.8 x. For the quarter, we generated operating cash flow of $61.7 million and invested $17.6 million in capital expenditures, primarily driven by investments in new and existing stores and information technology. Moving now to our outlook. As detailed in our press release, we are reiterating our full year guidance reflecting our first quarter performance, the expected benefit of our ongoing initiatives, continued strength in average ticket, and a range of assumptions for the macro environment and traffic trends. We continue to expect net revenue between $2.03 billion and $2.09 billion, supported by adjusted comparable store sales growth of 3%-6%. As a reminder, we expected factors such as calendar implications from last year's 53rd week, holiday shifts, changes in selling days, as well as the timing of our investments to impact the quarterly cadence this year. Our expectation for flat to modest growth in Q2 reflects these factors. As Alex noted, Q2 comparable store sales are tracking in the low single-digit range, primarily due to the replatform of our website. We view this as temporary and are already seeing sequential improvement in traffic as the quarter progresses. We continue to expect comp growth to strengthen in the back half, supported by initiatives already underway, like the new premium lens and frame launches and the rollout of our store segmentation strategy to offset the recent traffic disruption. These factors reinforce our confidence in the trajectory of the business and in reaffirming our full year guidance. Turning to profitability for 2026, we continue to expect adjusted operating income between $107 million and $133 million, which includes a range for depreciation and amortization of $88 million to $92 million. At the midpoint, our outlook assumes fiscal 2026 Adjusted Operating Margin expansion of approximately 100 basis points relative to fiscal 2025, excluding the 53rd week. As we have reiterated, this expansion in Adjusted Operating Margin is expected to be driven primarily by SG&A leverage. From a quarterly cadence expectation, we continue to expect more favorable year-over-year growth in Adjusted Operating Margin in Q1 and Q3, and for Q2 and Q4 to yield flat to modest growth. Our full year guidance takes into account our multi-year cost savings plan, and we remain on track to realize approximately $10 million in annualized savings this year. Interest expense is expected to be between $14 million and $16 million. We expect our effective tax rate to be approximately 28%, excluding the impact of vesting on restricted stock units and stock option exercises. Bringing this all together, we continue to expect Adjusted diluted EPS to be between $0.85 and $1.09 per share, which assumes approximately 82 million weighted average diluted shares outstanding. We expect CapEx to be between $73 million-$78 million for fiscal 2026, which includes investments to open approximately 30-35 new stores this year. Our store openings guidance continues to be weighted towards America's Best branded stores and excludes the expansion of our military locations completed at the end of the first quarter. We also expect to close approximately 10-15 stores as part of our ongoing fleet optimization efforts, resulting in net new store growth of approximately 20-25 stores. We expect both store openings and store closures to have a relatively balanced cadence throughout the remainder of the year. In closing, our disciplined approach to executing our strategic plan is delivering results, and we're seeing this reflected in the strengthening growth in transaction value. This progress reinforces our conviction in the path forward, and we're excited about the opportunities ahead. We look forward to sharing our continued progress with you. With that, operator, we're now ready for questions. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. Our first question comes from Michael Lasser with UBS. You may proceed. Hi. Hi, everyone. Thanks. This is Josh Bleustein on for Michael Lasser. Congrats guys on another great quarter. I guess, to start off here, it would be great to hear some more color just in terms of the impact the replatforming is having on traffic within the quarter. Could you help us quantify, you know, what the range of impact you see on traffic specifically, that in the quarter to date trending? Good morning. Thanks for the questions, it's Alex. As mentioned, we launched our new America's Best platform right in the beginning of Q2. You know, we intentionally picked Q2 as it's our lowest volume quarter of the year. You know, with changes of this magnitude, you know you're gonna hit some speed bumps. One of the things that we've seen is sequential traffic improvements since the go live of the site. Just to be clear and provide a little bit more color on this, we really haven't had any technical challenges with the site. This is all related to how we, you know, plug the site into our social marketing and search marketing signals. You know, our site is responsible for approximately half of our eye exams that get booked for America's Best. As we've talked about historically, we rely a lot on social and search marketing. Having those signals go back and forth between the search and social providers and into our site are kind of in the point of being reestablished after completely changing out the platform to what is now really the most modern e-commerce platform that you could implement, that you could hope for. In terms of specific color, right? I mean, we started Q2 in the negative traffic realm, and we're building up from that as the quarter has progressed. We don't see anything in the quarter that's taking us off of our full year guide. We're certainly, you know, performing within range of our planning scenario. You know, once again, you know, from my prepared comments, you know, we believe this is an important step and an important investment for the future of the organization. Okay, great. Thank you very much. Thank you. Our next question comes from Simeon Siegel with Guggenheim. You may proceed. Thanks. Hey, guys. Good morning. Alex, can you speak to what you're seeing in traffic from new target customers versus the traffic losses from self-pay? Maybe kind of disaggregating that a little bit for us and how you think that goes forward. Chris, can you just quantify the gross margin drivers between mixed pressure versus the pricing and leverage benefits and also how you think about that going forward? Thank you. You got it. Hey, Simeon. On cash pay, you know, we're seeing, you know, a bit of a trend that we've continued to see with cash pay customers being suppressed in Q1 from a traffic perspective. Again, as a cohort from a cohort perspective, the cash pay consumer is actually comping positive because, you know, as mentioned, they're adopting the premium frames and premium lenses at a pretty high clip. We're pleased with that performance. From a traffic perspective, kind of on trend and suppressed from what we've seen in previous quarters. Our target customer cohort base of managed care progresses and outside RX did comp positively from a traffic perspective in Q1. Again, you know, as we've talked about over the last few quarters, this intentional shift to these more profitable customers is one of the contributors to our overall profitability expansion. Chris, on the margin points. Yeah, great question. Thanks for the question. From a gross margin perspective, you know, we expect the full year to be relatively flattish to nominally negative on gross margin. When you kinda unpack the inputs, as you said, we've got, you know, some nominal pricing increases we took at the end of Q4 and in Q1. Really what you're gonna see that's driving gross margin year-over-year is gonna be almost entirely on the mix front. As we, you know, we've said it in Investor Day, but just to remind this group here, right? As we introduce more premium frames, as we lean heavier into more premium lens options, those will drive more gross margin dollars, and it's really gonna be the primary driver of our operating income leverage. At a gross margin level, from a% perspective, could be dilutive. Great. Thanks, guys. Best of luck for the year. Thank you. Thank you. Thank you. Our next question comes from Zachary Fadem with Wells Fargo. You may proceed. Hey, good morning. Could we talk a bit more about the cadence of comps and to what extent you saw changes in trend between managed care and cash pay customers as we moved through the quarter? Specifically, could we talk about what you saw around the impact of tax refunds and when gas prices started to spike in March? Yeah, I'll provide some color on Q1, right? When we reported Q4, we were sitting at mid-single digit comps, and you know, we're proud that we ended the quarter right in line with that. You know, overall, again, super pleased with the quarter, especially given the really choppy backdrop of both weather and as you kind of pointed out, some of the macro elements that we're contending with. I don't think there's anything really, you know, remarkable from that standpoint. Chris, you wanna provide just a bit more color as well? Yeah. To address the part of your question on tax refunds, look, we no longer attribute a disproportionate benefit from tax refunds as we think of our demand curve in Q1. Certainly any stimulus and more cash in our consumers' pockets is gonna increase their propensity to spend. It doesn't seem to be the same level of drivers it perhaps was historically for the business. You know, the more we shift towards managed care consumers that are a little more insulated from these macro trends, I think we'll continuously see that reliance on tax refunds impacting consumer demand decline. Got it. As you think about trade-up among cash pay customers, I'm curious if you could share how your branded/newness mix has been trending over the past year, where you are today, how your pricing strategy compares for branded versus competitors, to what extent you think trade-up specifically has been additive to the average ticket. Yeah, Zach, we've been super happy with our ticket expansion, in particular because about half of it is coming from mix change. Consumers raising their hands and opting into more premium frames and lenses. As we shared previously, we're under indexed on almost every part of the lens category, anti-reflective Transitions, premium progressives. On all of them, we're making significant progress as we kind of step through the year. Matter of fact, you know, we're even seeing acceleration in early Q2 on our penetration of anti-reflective Transitions in premium materials. Even with, you know, this kinda choppy macro backdrop and the cash pay consumer a bit suppressed from a traffic perspective, that cash pay consumer, when they're shopping with us, they are comping positively because they're opting into more premium products. Again, it's been a real pleasant upside for us to see the continued acceleration of our premiumization strategy. Alex, the other thing I'd add from an income demographic perspective, which is frankly exciting for us to see, is we're not seeing any disproportionate shift as we look at our income deciles for cash-pay consumers. As you look at the softness in cash-pay traffic, we're not necessarily seeing that just at the low end of the income demographic. I think what that's telling us is our cash-pay consumers, regardless of income demographic, are leaning further into our premium strategy. Just to accentuate a point that Alex said, right, we ended last year with about 40% of our frames priced over $100. I mean, what that means in the inverse is we still have the majority of our frame board priced at very high-value frames. There's still plenty of optionality for those who are seeking value, which is why we're so confident we remain the obvious destination for value in the category. Thanks for the time, guys. Thanks, Zach. Thank you. Our next question comes from Simeon Gutman with Morgan Stanley. You may proceed. Hey, guys. Alex, when I listened to the prepared remarks, when you were talking about the traffic that had slowed, I read or I felt that maybe you contemplated thinking about changing how the guidance may look for the whole year. Then I heard your response to an earlier question, and it sounds like you either have enough cushion in the plan or you've, I don't know, built in a little bit more ticket growth on the back half to get there. Can you just clarify that? Then I have one follow-up question. Yeah, you got it. No, we are absolutely sticking to our guidance for the year. you know, I think Our planning scenario included, you know, these types of risks associated with an ambitious transformation that the company is undergoing. We certainly believe that with the initiatives underway around segmentation, introduction of premium lenses, frankly, the benefits that we're going to get from our e-commerce platform and our CRM go live in time, that those things are more than going to offset the softness that we saw in the beginning of Q2. Yeah, if there was anything to the contrary in my prepared remarks, let me clarify that now. We're still absolutely sticking with our full year guide. Okay, that's helpful. 2 follow-ups. First, you know, we're talking about premiumization, and it feels like a greater dependence on ticket in the back half, and I think Chris just made the case why the income stuff would be supportive of that. You know, the lower income customer probably gets worse, not better this year. I heard a lot of premiumization. Curious how you know, reconcile those 2 or just think about it. The 2nd question, on SG&A, can you clarify, I think some of the savings this year or over time is contractual. For the quarter, I heard associate expenses and advertising. Did you get the contractual savings in this advertising and associate expense that was incremental to how the quarter played out? How did those 2 things interact between the contractual versus some of the tactical spending for the rest of the year? Yeah, I'll take the first piece around premiumization taken in the back half. Yeah, all of our data to date would indicate that even though our lower income deciles are moving up in terms of product purchase and average transaction value. You know, we're seeing that both on the frame and the lens side. Again, as Chris mentioned, you know, we still have options, you know, at the below $99 price point on the frame side. We still have options on uncoated plastic lenses in the assortment. Now that we're becoming more of a clienteling and concierge destination in optical, we are seeing, you know, all consumers, including the lower income deciles move up. We haven't seen anything from either an elasticity or a capture perspective that gives us any pause or hesitation on the strategy impacting any consumer at any income decile. You know, relative to the category, you know, we still haven't taken meaningful price at the entry level, right? I mean, I'll remind the team that, you know, we have made changes to our entry price point, our lead offer of two pair, you know, moving from $89 to $95, which was, you know, I've jokingly said in the past, it's more of a modernization of a price point than it was an actual pricing action. With our two-pair offer, with an eye exam at $95, you know, and a credible destination for that, we still think we have, you know, a tremendous story for capture of the cash pay consumer, and particularly at the lower income decile. Long way to say, you know, Simeon, it's not something that's given me a lot of pause or concern at this point. On the SG&A front, you know, there were contractual and programmatic designs of our procurement initiative last year that would impact associate labor and marketing. Elements of those were recognized in Q1. What I'd say is, of the $10 million that we expect to get in terms of savings this year versus last year, it does still continue to ramp throughout the year, as not everything went live necessarily on January first. There's more of that $10 million left for the rest of the year than was recognized in Q1. Okay, thanks. Good luck. Thank you. Our next question comes from Robert Ohmes with Bank of America. You may proceed. Hey, good morning, guys. Thanks for taking my questions. really just kinda two follow-ups on Simeon's questions. The first is just on the replatforming, you know, et cetera, is there any sort of disruption related to, you know, sort of the message changing? You know, maybe the advertising message changing a little bit here away from cash pay and maybe more towards premium offerings, and that there's some dislocation that's short-term related to just the messaging, you know, not just maybe the execution and things like that? Yeah, I'll take that. You know, we've actually tested our messaging extensively. We've tested old messaging versus new messaging, and we're seeing our take rate, our click-through rate, our CPAs continuing to be stronger with our newer messaging, newer creative than we have with our kind of previous campaign. We've seen our unaided brand awareness continue to rise and really lead the category. From those components, you know, we still feel really great about our marketing strategy, our marketing message, and our lead offers to the consumer. You know, this is really our short-term disruption related to the replatforming is really an element of getting our site kind of re-indexed with all of our search and social marketing. It's, you know, the way that our marketing and e-commerce people have explained it to, you know, simple folk like me is it's all about, you know, reestablishing the pipes between the site and our lower funnel marketing tactics that have to be reestablished once you go live with a new site. Those pipes are being kind of reestablished and rebuilt, you know, on an ongoing basis as we trend towards normalization. It's something that's critical for the long-term growth and health of the company, especially as we do have aspirations to become a more omni-channel company in the future. Certainly it's a requirement as we think about, you know, the role that agentic AI will play in commerce in the future. You know, our previous site wasn't going to get us there. We have now upgraded ourselves to a way that kind of future-proofs us and gets us ready and fit for future for a world where agentic commerce plays a larger role and where omni-channel plays a larger role in our future as well. Robbie, hopefully that provides a little bit more color and context to your question. That's. If you have a follow-up, I'll turn it to Chris. Yeah, that's helpful. The follow-up would just be, how is this impacting trends in overall exams, you know, versus, you know, outside RX customers? You know, what did you see in the first quarter? Also, you know, how do you see these changes impacting the trends, you know, sort of exam versus outside RX? Yeah. It's a great question, Robbie, because that's actually exactly where the traffic impact is on the exam side, right? Because this is our website today and our marketing tactics today, especially lower funnel, are pointed at really driving exams as the kinda entry point into commerce within America's Best. That's where we've seen, you know, the most significant kind of traffic impact is those consumers that are coming to us for an exam. Got it. You know, just recently, you know, the same store sales were sort of, you know, at the depths of the transition. You know, are you expecting to get back to mid-single digit quickly? Yes. Go ahead, Chris. Yeah. I'll jump in on that one. You know, our guide at 3%-6% gives us we feel very confident we'll land within our guide for the year. I think there's, you know, this is certainly one initiative we've got in place that's, as Alex said, we're quarter-to- date sitting at low single-digit comps. When you think about the timing, the calendar shifts, the investments we're making through the rest of the year, we still feel confident about coming within that range. Like I said, you know, through Q1 being at the midpoint of our range gives us a lot of confidence for the rest of the year. Got it. Thanks so much, guys. Thank you. Our next question comes from Paul Lejuez with Citi. You may proceed. Everyone, this is Brandon Cheatham on for Paul. I wanna ask about your AI glasses initiatives in the quarter. You know, any color you can provide on that driving results. Just to confirm, you still don't include any benefit from that initiative in guidance. I wanted to understand, you know, how does the margin rate on that product compare to an average pair of glasses? I would imagine that gross margin dollars, given the high ticket, are probably significantly higher than what you normally sell. Can you talk about the rate there as well? Yeah. No, we are very, very pleased with our expansion of Meta AI glasses to the entirety of the National Vision portfolio within America's Best and Eyeglass World. We scale it to those networks in the end of Q1. Based on the strength that we saw in 2025 when we, you know, initially started with, you know, call it 50 stores, went to 300, now taking it to the rest of the fleet. Our sell-through rate has exceeded our expectations. Our adoption rate of associates and consumers has exceeded our expectations. The average transaction value of the Ray-Ban Meta consumer is amongst the highest that we have within our portfolio. You know, overall, continue to be incredibly bullish on this product category. You know, as we've talked about, though, you know, we have not yet built any upside into our guide. This is still all, you know, relatively new, but early indications, you know, are that this is an additive and will be an additive product for us long term. You know, the question related to margin, it is a highly margin dollar accretive transaction, but as you know, Chris has indicated in the past, you know, from an input cost perspective, it's not necessarily a gross margin rate accretive product. So love the transactions, love the momentum we're seeing with it, love the adoption, love our associate enthusiasm for the product. Certainly excited about the new products we've introduced, both the Oakley line extensions as well as the Ray-Ban line extensions that are more geared towards the optical consumer. It's been a, you know, I think a great story for us, and it's gonna be a great story for us into the future as we scale this category and ultimately, you know, build National Vision as the destination of choice for those interested in smart eyewear. Got it. Just not to belabor the replatforming questions, but, you know, this just sounds like it was an issue on the search engine optimization, and the primary disruption was customers finding you to book an eye exam. Just wanted to clarify, you know, you're not seeing any impact on conversion. You know, given that you're low single digits quarter to date, is it safe to assume that comps are back to mid-single digits over these past couple weeks? Thanks. You're spot on on the website and the challenges is related to search and social optimization versus being a kind of technical challenge related to people coming into the website and being able to book exams and find exams. You know, as we've kind of are reestablishing the pipes, right? What we have to ensure is that we have proper tags and signals that are going back and forth between ourselves and the search and social providers so that we're continuously optimizing our search campaign and search algorithms. That's kind of the stuff that just takes some time for the algorithms to relearn so that we can get back to our CPA efficiencies that we've had in the past. Again, our primary metric that we've been tracking to see if we're getting back on trend is our CPA through search and social. Not quite there yet, but it is trending back in the right direction from go live. That's kind of our leading indicator to give us confidence that we're moving in the right direction. Any comment on comps over the last couple weeks? Are we back at mid-single digits? Again, what I can share is that from a comp perspective, from the go live early April to where we sit today, we have seen, you know, sequential improvement, week over week as we've stepped through the quarter. All right. Fair enough. Thanks, and good luck. Thanks. Thank you. Our next question comes from Brian Tanquilut with Jefferies. You may proceed. Hey, good morning. You got Jack Slevin on for Brian. Thanks for taking the questions. A couple things to clean up here. A lot of questions already been asked. Just on the military openings. Understand that the store count's not embedded in the guidance, but is there any way you can think about, you know, how that starts to layer into the business from a revenue perspective. Secondly, just curious if there's any updates in terms of how some of the initiatives around the hybrid remote techs are progressing right now. Thanks. Hi, this is Chris. I'll take the question on military. We acquired those stores in the first week of April, in terms of integrating them into our platform. We'll start to see the revenue build pretty immediately in Q2. As it gets about kind of the scale and impact at the platform level, you know, these locations will be relatively consistent with what our existing military locations operate at from a productivity perspective. You know, you can see in our data, these stores, you know, they operate at less than half the average volume of, let's say, an America's Best, but they still generate, you know, a healthy profit margin that's accretive to the platform. Again, we're super excited to be in a position to serve those who serve for us in these locations. That being said, likely not a material impact to the business for the rest of the year. On hybrid remote, you know, we're continuing to be pleased with the progress we're seeing, with the adoption we're seeing, with the enthusiasm we're seeing from doctors that we're piloting hybrid with. No real meaningful update from previous quarters. As I've said before, you know, we're stepping through this, you know, awfully cautiously because this would be one of the more significant change management components that we take on. We're just being very pragmatic in our thinking about how to take that to further scale. Again, early signals I think are this is a, you know, a strong and meaningful contributor to how we evolve our business model going forward. Lots to learn, and we're being just cautious as we move through time on this one. Makes sense. Appreciate it. Thank you. Our next question comes from Adrienne Yih with Barclays. You may proceed. Great. Thank you very much. I did wanna say that I did do your telehealth, and it was seamless. Absolutely seamless. Great job there. My first question is, can you talk about the cadence of comp that was actually in the quarter just reported? I know you said you had some weather issues. What months were those? I know we keep talking about the current quarter and having the transition. Did you run dual channels, like, on the website or on the e-commerce facility? When exactly did you switch over to the new e-commerce platform? If you can tell us what% of sales comes from the e-commerce platform. My second question is, in past macro slowdowns, we've actually seen this category of a medical necessity, which we love, sort of be deferred. I'm wondering how you're proactively stemming that in the backdrop that we currently have. Thank you. You got it. Thanks, Adrienne. On the first kind of cadence on Q1, you know, we saw a, you know, a really strong start to the year. We had a really strong start in January. We saw, and then late January, early February, I think we were impacted by weather just like the rest of retail and the rest of the country. We started to see some really nice and strong recovery in the back half of February. As we kind of moved through March, you know, we did see a, you know, I think a bit of pressure from some of the more choppy macro backdrop. Again, you kind of aggregate all of that, you know, between a couple different weather events, a war starting in the Middle East and you lay it all out and we ended up, we ended at four and a half, which is kind of right where we were when we reported Q1 results. I shared with the team, you know, through that period we were mid-single digits. Certainly a complex quarter to navigate. Again, I just want to take a moment to thank all of our team members at National Vision for doing an exceptional job navigating a very tricky quarter. Hopefully that provides a bit of color on Q1. As we prep for the launch of the new e-commerce website, we did launch at scale right in the beginning of Q2. We took the last couple weeks of Q1, where we flipped the site live in states that we don't have a physical retail presence, just to make sure that we weren't seeing any type of technical challenges with the site, which is what those 2 weeks confirmed. When we did go live, basically 1st week of Q2 is when we started to experience a downtrend in exam bookings, which is you know, significant component of our traffic or revenue source within the brick-and-mortar environment. About half of our exams are booked online. I'd say, you know, all of our lower funnel marketing is pointed at driving consumers through search and through social to book online. To be clear, what we're rectifying and some of the challenges that we've identified and we've actioned on is the signals that are going back and forth between our site and search and social. Give you a real tactical example. You know, there's some cases we know when an exam gets booked, the signal is not going back to Google to inform them that the exam has been booked, therefore, it's leading to some inefficiencies in terms of audience identification, so that we are targeting more like audiences for higher degrees of efficiencies. Some of those signals we're reestablishing through our tagging strategy and just knowing that some of that just takes time for these search algorithms to relearn, you know, a site that's been completely, you know, re-architected and re-platformed. Again, hopefully that provides a bit more color and clarity to that question. Sure. On this point on, you know, medical necessity and downturn. So far, you know, we haven't seen a meaningful shift in the repurchase cycle or months between purchase that would indicate that yet. There's nothing that's giving me pause at this moment that we're seeing a delay in purchase cycle from a longitudinal perspective with the consumer. Okay, great. The macro backdrop that you have for sort of rest of year is similar to kind of what we're currently experiencing? My final question, because I have a lot of them, is your cash comp versus managed care% now. I know that you've made a big jump year on year at the end of the year. You had mentioned previously that there was a top, right? Most of the industry is 70%, but there was sort of a 50%, you know, ceiling perhaps because you only had certain vision care programs. What portion is left to penetrate, and how can you penetrate that incremental 20%? Thank you. Yeah. Our planning scenario is actually a macro backdrop that looks very s- albeit without the weather challenges that we had in Q1. Our planning scenario is a macro backdrop that remains, you know, relatively similar. Again, our planning scenario includes continued strength in the transactions that we're seeing today. On top of that, layering in continued momentum with Meta, continued momentum with through segmentation. As I mentioned in my prepared comments, the introduction of premium lens and Nikon Lenswear is going to give us tailwind. We have, you know, a lot of additional exciting initiatives that are being layered into the business over the coming quarters that give us, you know, the confidence that we have that we can, you know, deliver. We can even deliver our top end of the of our guide with some degree of negative traffic given the acceleration that we've seen on ticket and given some of the additional initiatives that we're layering in. You know, those are all I think, you know, the reasons that keep this team, you know, positive and energized for the potential for the back half of the year. On managed care, I'll let Chris talk to the mix. You know, our upward bound, we said our next big milestone is around 50% of our business being sourced from managed care. The category sits at 70%, and that is because there are, you know, insurance networks that we don't have an in-network relationship with, that were consumers who participate in those plans. Yeah, we are. In Q1, we did see, you know, continued meaningful growth in managed care as a% of our mix. Just remind folks is that there, you know, there's a pretty heavy seasonality throughout the year between managed care and cash pay. Typically see your managed care consumers purchasing more Q4 and Q1 as their benefits are either getting close to expiring or newly reset. Q1 versus Q1 of last year, we did see the managed care penetration increase versus prior years. It gives us confidence that we're continuing to march towards that 50% goal. Great. Thank you very much. Thanks, Adrienne. Yep. Thank you. Our next question comes from Dylan Carden with William Blair. You may proceed. Thanks. I'm curious, you know, you're still serving this lower income cohort cash pay customer, and even if it's just anecdotal, you know, where is that customer? Is that customer not shopping this category right now, or are they going elsewhere? Why traffic you think is still down? Particularly in the context of just, you know, you've been asked this question I think a handful of times on this call, but we've been trained to think that tax refunds are a big deal for, you know, particularly your business, but the category more broadly. You would think a 10% overall average increase, particularly for that cash pay customer would be more than deserved. Just how we can square those things. Thank you. Hey, Dylan, thanks for the question. Our take is that, you know, the cash pay consumer is suppressed category wide. I think, you know, our internal data and as we've shared that supports that, is we're not seeing a degradation in cash pay consumer across income cohorts or across age demographics. It's really, you know, across the board, you know, the cash pay repurchase rate just has remained lower and suppressed versus the managed care consumer. That's been a trend that's been consistent over, you know, really over the last quarter or flash the last year. We don't believe that we're losing share. We don't believe necessarily that consumer is stepping out. There is a component of that cash. The cash pay pool is becoming smaller as cash pay consumers migrate into managed care plans. Again, I'll just put a reminder out there that that historically has been, you know, in the 2% range that, you know, cash pay consumers are migrating into the managed care bucket. Just as a reminder, right, when our through 2025, our exam growth outstripped the category per The Vision Council data, which again, it, to us. That's across managed care and cash pay consumers. Again, I think, you know, mathematically would point to that we're not losing that customer, we're not losing share. It is just a function of lower repurchase velocity than, you know, what was the historic norm. Chris, if you wanna comment on the tax refund and impact component? Yeah. I think this year, like I said, just more cash in consumers' pockets, just increasing propensity to pay. I'm sure we benefit from that just as any other retailer in the category would. I think, you know, perhaps what's unique to this year is that the gas price spike we saw almost in concurrent timeline, you know, folks might have been, you know, while the cash might have been in their pocketbooks by March, they may not have had the same propensity to spend it as they started to see the prices at the pump go up. Like I said, as we continue to lean more into managed care consumers, I think our attribution of spend in the category to tax refunds is maybe less critical than we've communicated in the past. You know, we remain a, I think, a great destination of value for those consumers as well. Just reinforcing a point that Alex said, right? Because we're not seeing any disproportionate decline in cash pay traffic across the low income demographic versus other income levels, you know, I think it just reinforces our belief that, you know, the cash pay consumers are likely not may just not be engaging in the category for a temporary period. Thanks. Does it stand that you mentioned gas prices. You guys have been trading pretty in lockstep with gas prices inversely. I mean, is there incremental risk embedded, again, another question you were asked, but just to reiterate, embedded in your guide, given that we're kinda left here with higher gas prices, but the tax refund goes away? Thanks. Yeah. I think from the demand front, I'm not sure if we're that differentiated from anyone else in the category other than as a destination of value, we might pick up some share as we kinda reinforce our message, especially with our leading offer. So from a supply side, you know, we don't expect any material impact to the business in our guide that we can't mitigate. That kind of points to how we managed through the tariff impacts of last year, right? It was something that wasn't contemplated, you know, as we issued our guide early in the year. I think the management team showed that we can pull the right cost levers to make sure that we deliver the operating margin that we've communicated. Awesome. Thank you. Thanks, Dylan. Thank you. Our next question comes from Kate McShane with Goldman Sachs. You may proceed. Hi, good morning. Thanks for taking our question. We just were curious about the competitive environment in the quarter. As you go after more of the managed care customer, are you seeing any kind of competitive response or any kind of incremental promotions? Just one clarification question with the Nikon Lenswear. I think you said it was being piloted, but it's in all locations at this time. Just wanted to get clarification of how you're thinking about that rollout. Great. Hey, Kate. Thanks so much. Yeah, we're not really seeing anything competitively different in Q1 or early Q2 as it pertains to the managed vision care customer or the cash pay consumer. Not really seeing any incremental promotions or discount strategies, you know, in the category as of yet. Therefore, you know, we're not changing our tactic as it relates to really promotion and pricing. You know, as we've talked about our strategy around ticket expansion is really one of offering consumers more premium choices while still having plenty of other choices if their pocketbooks wanna take them in a different direction. I think that has actually been more of the category trend as of late. On Nikon Lenswear, we're piloting in just over 100 locations right now with a current June plan deployment for the balance of our store fleet. Thank you. Thank you. Our next question comes from Matt Koranda with ROTH Capital. You may proceed. Hi, guys. Thanks. A lot of been asked and answered. I guess, it sounds like you maybe need a little bit more ticket in the coming quarters to offset the near term traffic headwind. Maybe, and the comps get tougher on ticket, I guess, over the next couple quarters as well. Just wanted to hear how you think about ticket growth in the context of those difficult comps, and sort of the how much contribution comes from sort of the premium frames and lens strategy versus the customer mix factors that you've called out. Thanks, Matt. Certainly over the next, you know, in Q2, you know, we're gonna see a much more substantial component of our growth coming from ticket. I mean, I think that's obvious from the comments we've made. Again, I'll remind everyone that, you know, we are so underdeveloped on portions of the category, not just premium frames, but premium lenses, premium lens add-ons. What gives us, you know, the confidence as we step through the year is, you know, especially as we enter a chapter of store segmentation where we'll segment our store base into 5 segments that will range from a segment that will have 25% of their assortment in luxury and premium frames to the other end of the spectrum, where that segment will have, you know, less than 7% of their assortment in luxury and premium frames. We're serving the customers at a much more micro level, the products that they want and the products that we have the data to support selling through. As we go through the back half of the year, you know, we do expect additional tailwinds from product segmentation. We believe that that is going to be a significant average ticket contributor as we continue to hone our assortment for a specific store and customer types. The Nikon Lenswear launch, again, can't be underestimated or understated. You know, we're super happy that we're getting, you know, this type of premium lens in our assortment, which qualifies for the highest out-of-pocket and the highest reimbursement rate on insurance plans, as well as for cash-pay consumers, gives them an option that offers them the best adaptation and the best clarity for a progressive lens. That's another kinda arrow in our quiver as we move through the year. Whereas I'd say in, you know, the chapter in late 2024 and 2025, we were more reliant on kinda no regrets pricing actions. We're stepping through 2026, our ticket expansion is more heavily reliant on mix changes, both on the consumer side and on the product side. Year- to- date, we're achieving above expectation levels on those both leading and lagging indicators on ticket expansion. Hopefully, Matt, that provides just a bit more of the color you're looking for. Yeah, appreciate the detail there, Alex. Thanks. Maybe just for the follow-up, this might be for Chris. I guess with the replatform maybe driving a bit of a drop in CPAs that you called out, is that the headwind to SG&A, the marketing spend line that causes us to expect the flattish operating margins in the second quarter? Is there any tariff recovery embedded in or baked into the guidance for the remainder of the year? How should we think about sort of how that flows through the P&L for the remainder of the year? Yeah, great question. To answer your second question first, there's no assumption for tariff recovery in the guide for the rest of the year. We are exploring our options and making sure that we're dotting the Is and crossing the Ts when it comes to executing in the right way there. Yeah, to your point on Q2, and there's a couple things that are driving. Certainly, what you said from a marketing spend perspective, and CPA is a driver for our expectations for Q2, margins, operating margins not to expand as much as in Q1. Other things to keep in mind, you know, we've got some calendar shift items and also just timing of investments and the launch of some of our initiatives. As Alex mentioned, we've got some really exciting initiatives launching in the back half of the year. Some of the investments towards those investments will take place in Q2. Likewise, as we think about Q4 going into 2027. For the year, we still feel confident that, you know, the midpoint of our guide shows about 100 basis points of operating margin expansion. For, say, the foreseeable future, you can expect some choppiness in terms of how that materializes quarter-over-quarter. All right. Appreciate it. I'll leave it there. Thanks. Thank you. Our next question comes from Anthony Chukumba with Loop Capital Markets. You may proceed. Good morning. Just a real quick question. In terms of traffic, you did have a nice sequential improvement in traffic from the fourth quarter to the first quarter. Just wondering what you attribute that to. Thank you. Yeah. Thanks, Anthony. You know, agreeing, we're happy with that. Again, I think it, Like I said, we started January really, really, really strong. We had a nice recovery after the winter storm challenges. One of the things that I'll keep pointing to is our unaided brand awareness post changing our lead communication strategy away from our historical marketing platform to Every Eye Deserves Better. We attribute our kinda traffic growth to that, right? That our unaided brand awareness is at record highs. Our Every Eye Deserves Better platform is resonating with consumers. We saw nice kind of eye exam growth. We saw the effectiveness in our CPAs, actually at a really healthy level in Q1. Q1, from an execution perspective, you know, especially given the backdrop, I could not have been happier about how the team executed and the tailwinds that we got from the strategies that were put in place. That's helpful. Thanks. Thanks, Anthony. Thank you. I would now like to turn the call back over to Alex Wilkes for any closing remarks. Well, thank you first and foremost to all of our National Vision associates and affiliate doctors who take the time out of their days to listen to our call. You know, it really is your hard work and your dedication that was tied to our performance in Q1 and are certainly one of the most vital components of our ongoing transformation. To our doctors and our store managers that I get to see next week in Dallas at our annual conference, I can't wait to spend some time with you guys to celebrate the amazing accomplishments that we've had as an organization, both in Q1 and through last year, and really get everyone just excited and energized about the future transformation to come as we step through the rest of the year and into 2027 and 2028 and beyond. Thank you very much, everyone, for your dedication to the company, and I appreciate everyone who's on the call today and the thoughtful question we got from our analyst community. Thanks, guys. Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.