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

Shares of National Vision Holdings Inc.
EYE,
-0.28%
fell more than 11% in the extended session Wednesday after the optical retailer operating brands such as America’s Best and Eyeglass World said that its contract with Walmart Inc.
WMT,
+0.36%
won’t be renewed after it ends in February. That includes supplying and operating “vision centers” in some Walmart stores, providing contact lens distribution and related services to Walmart and its affiliate, and optometry services at some Walmart locations in California, the company said. “We value and appreciate the contributions that our partnership with Walmart has had in helping us grow National Vision over the past three decades,” Chief Executive Reade Fahs said in a statement. “While this decision was not expected, we look forward to beginning a new chapter as a more streamlined company ever more focused on delivering value to our stakeholders through our mission of making eyewear and eye care more affordable and accessible.” Walmart notified National Vision that the contract wouldn’t be renewed last week, the company said, without providing further details. National Vision also released preliminary second-quarter earnings, including an adjusted EPS of 17 cents a share on sales of $525 million, up 3% from the year-ago period. That compares with FactSet expectations of adjusted EPS of 15 cents a share on sales of $526 million.