CTHR - Earnings call transcript Q4 2017

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Operator

Good day and welcome to the Charles & Colvard Fourth Quarter 2017 and Full-Year 2017 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there’ll be an opportunity to ask questions. [Operator Instructions] This webcast may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the Company’s business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. or based a our uncertainties, number which be are are expectations some statements beyond cannot to are subject of predicted forward-looking largely Company’s on and of our These control. and quantified risks and materially actual contemplated forth underlying forward-looking differ or those statements. set Future developments could from and the results in by In assurance accurate. information forward-looking to be that these will and there uncertainties, risks of the light can no be prove of shareholders. any webcast proxy, does to an constitute or nor designation consent, a This solicitation agent offer to authorization securities meeting a purchase of not with respect the Company’s Please recorded. event note, this is being I Chief conference Executive the would over and Miglucci, President to now Officer. like to turn Suzanne go Please ahead.

Suzanne Miglucci

quarter Thank and us you you, we joining Good year for thank afternoon XXXX results. full and fiscal Colvard’s summarize Gary. fourth as Charles &

quarterly new supporting slide We more with you to report. Accompanying call are of you to call today's of quarterly our we a intention the today our PowerPoint a audio format deck, the introducing which with will providing refer our comprehensive formal of presentation visual conference on is during section available and X. the valuable is in presentation enhancement hope to file with begin find PDF Relations a addition our This ir.charlesandcolvard.com/events. work this website Investor you'll results. at our I’ll remarks. We calls Slide our

XXXX detailed Chief direction a of with to strategic I’ll to during For compared call business and for Financial XXXX QX we plan to made with as share with a to then I'm strategic operational discussion for the in brand. the today's a the XXXX. executed wrap excited over agenda, review, and Charles QX then Pete, we consumer-facing you the XXXX on position I’ll jewelry made financial we've up strides & our turn as progress our our Officer, Clint Colvard

the year-ago segment. initiatives, year. quarter, improved represents earned Slide and X. the improvement $XXX,XXX equaling quarter the In versus in turn which traditional and profit time, loss cumulative year-over-year our result of strategic performance, bottom net surpassing sales, a from Company's revenue quarter since $X XXXX. time for XX% Company history a of achieved profitability first and we our first we've line consecutive the of million QX, produced progressively it XXth took the in We well five to year, the margin, outcomes $X.XX brand relaunch profit We same our But our of Online gain. the efforts fourth measure marketplaces, Online directly increase, success since website, brand Let’s from QX our of represents in pure-play Slide drop-ship, which first resulting share include our quarter, XXXX in we XXXX. in quarter consumer. the sales QX Channels The sales turn Charles touches growth, year-ago Online segment outlet. Channels XX% the full and effectiveness by strategic year-over-year XXX% website and QX the Colvard awareness X. revenue charlesandcolvard.com generating the Channels earnings charlesandcolvard.com the over over XX% generated Notably, XX% doubled We the this over $X.X attribute with million of of course our $X.X in a progress million net gross net swing per our our to direction. comparison summarize total and from the performance grew segment, executed place XXXX the of each to a & a ETL validate the revenue last

played & expansion product in while particular, and was our continuing line. Historically, the offerings, bridal a of of One Charles in innovation, Colvard Our gemstone the space. role prominent our jewelry first breath initiative growing Forever

to emerging opportunity introduce loose of nature our jewelry ensure One demand for while as six to a range XX product. of our small awareness and habits carats customer's are out initiative study that’s sizes. of selections and range buying XX.X consumers one, global these One selection bridal fashion-forward sustainability. innovations team plus the global to we points, including announced in about of price I've of Exotic events Green women's scales accent. stone, the the a aiming set limit As part Live polish this jewelry, calls, to Gems, of market. know jewelry that in want don't a two advantage stated released new in weight. carats merchandise supply to are readily XXXX, years of more as from raise equivalent broad we to We and which in Therefore, jewelry sales information learn diamond and lifetime. faceted prior expanding intricacies we of gemstones jewelry our in perhaps in trends. line the a a apply was to Love market of fashion new & limited gemstones, tip from We of and natural added result unrivaled the of our XXX% moissanite in men's products over website, the growth stones this nearly the offerings. Emerald, of Hearts of our industry. options, our to clarity Baguette, XX. Forever QX the our of line. a Forever category moissanite we cut, introduction With Arrows, We period gemstone shapes and net Radiant, expertise, And grew half that sales December, The our manufacturing six green One of the jewelry XXXX, Princess, family on Forever website gemstone full new to Green, cuts The to including fashion expansion the of grew a bring is We Heart, In year transactional last of Pear, refractive for Cut level sales. five double of of Trillion can melee and outcome undertake Fueling a to represented We our Marquise, same added availability high

rate. XX% compared XXXX One sales full-year the represented Forever our gemstones sales XX% of finished to For in growth jewelry our XXXX, total loose of XX% and net and

second sales marketplaces their effort. omnichannel our from A when X. Slide engines be our strategy Now different. is let's to initiative found search We brick-and-mortar with talk omnichannel of visual can be stores. intensifying to journey shop shopping to on journey strive our places, of the about to buying myriad market taking those representation in they're Every our goods customers individual on

can it's & So they their find Colvard on important Charles specific path.

that viable on reason, very I'll the retail presence For is outlet. brick-and-mortar channels. we've X. working still on across our traditional Brick-and-mortar multiple been start a with shopping Slide

& a market to experience entire While important only indicates of it's who the all brilliance represented XXXX, making retail to Charles grew why we're serve well. store stats in firsthand, stores so approximately wants all industry performed that still In Diamonds is finding customer moissanite in Moissanite buying has X.X% with decision. Colvard grew to before nearly Diamonds. relationship a we That's about excited pilot Therefore, stores. Helzberg XX purchases. of XXXX, our XX% sector our the Helzberg

new customer helping are a pleased have unlock Helzberg are and base to valuable a We such we partner.

also in traditional quarter, this In thousands QX addition to presence. part in across due conduit our our moissanite independent traditional our jewelers stores. their segment are year contributed and have XXXX to sales jewelers of to to Helzberg, grew the in is we of independent ago carrying distributors thousands the Distributors know from our XX% over Net brick-and-mortar industry.

begin This badge to And relevant fulfillment a culminated distribution developing of from we with those is to end U.S. more initiative provides journey a which on the the in most U.S., on large directly by more buying searches. year. our consumers XXXX. than in and seen products gaining on inventory seller e-commerce change our began presence our experienced prime was seller by It's In us the Amazon our In third membership, web by our can the that searches X, the expanding fulfilled means Amazon in & of others XX% their Amazon. we expanded our Slide initiative XX% places than Colvard Amazon paramount. Charles growth As the all channels. and significantly strategy a status having search Amazon half expose prime of of XXXX, fulfilled center shopper. of With which ability focus goods above ship households our prime this

XX% online QX to net credited part presence growth and sales is subsequent channels from Our this meaningful on in increase in in marketplaces.

listing. learned retailer. generate than new take Tmall first new the of They our becoming international largest the a sales. China tremendous to e-commerce in utilized We must markets of that sales more The build a in building foray been time obvious to and a Tmall reach our important to is grow us made able initial front, being consumers level We've alive. we to China. first in we we've But to On products distributors through into amount awareness the were presence we've it's brand imperative short brand all Alibaba’s international future of historically China's our direct-to-consumer way marketplace. for geographies. awareness marketplace most sales to small by XX% drive Tmall

drive we initiative order X, brand to amplifying However, marketing notable so. growth, more our we need to to Slide awareness fourth as our summarizes have XXXX, look we in plans to and efforts. create know sales do will

funnel of our From As campaigns than top key is million new our through engaging perspective, to been marketing the growth. and to spent efforts. We've audiences. brand social to of last more expanded gained XX educating, we've detailing, establishment a media consumers selling and our we exposure influencer year

on social to awareness barometer media our we As our engagement we and brand, audience of from progress. progress our rely with

rebranding our in QX ramp our we've by growth And Facebook by we've this these outlets seen during since months in quarter-over-quarter. grew XXX%. grown XXXX, XX the network phase, followers Instagram For XXX% and XX% up

in year. nearly X.X YouTube In we serve views addition, past of videos the our on million

of more on activities our now website media our engagement from these annual social growth traffic XX% driven drive XXX% digital social with on efforts, overall than marketing social sources, Our channels website. as combined purchases in

Slide Let's to XX. turn

of about past On customer highlight we Colvard we've learned Over & our by this based this data. charlesandcolvard.com breakdown the Charles on customers. year, a lot chart, course generation

our group. largest you see can millennials buying As represent

factors. demographics, positive socially buy the buck for who brilliance by life. moments market while what buying number luxury having from world and selection. And our with items the responsibility the habit brands driven analytics jewelry a money motivating important of reveal and for beauty, call ability on impact appears by environmentally and be three, one, the we buying that in regardless gemstone three distinct saving [indiscernible] responsible. our moissanite are to value, possible conscientiousness other two, Our and research audience of Number Number to bang social

interesting today's motivating younger brands appear devoted advocates services practices. seek and vocal we millennial, and They and these out their align that have believe green of transcend While to ethically wired. and socially with We and become Z common the have Gen that noticed demographics, factors goods some consumer, trends. core principles proactively embody

our jewelry expand of continue groups. We customer awareness gemstone, to targeted moissanite and will these across

unique earrings. opportunity Colvard the They audience a top final can strategic NBC's weekly carrot today’s you average pair – of million four XXX,XXX top Slide focused initiative feature to page, had today received us our just on On XX, features, evolving show. moissanite with studio of Facebook viewers show. audience combined It our one function. they has exposure week Megyn selling followers. last during moissanite our & of service to stud customer Charles of on on one As Slide more guessed great more see than Valentine's which video than on have was to our our Kelly to we product, an with month, a invited Members XX,

functions, optimizes Our many our times, and more. user brand. XXXX we friction with engaging on of experience the goal all take page website that new out deploy to In site our search, load mobile of technology improving is

our the policy. to in to free We while these shipping, free new consumer believe warranty new other to very us with of report to expanded our pivoted now covers guide offerings facing fully We returns so & with Colvard to and Charles centric or this also competitive experience now customers scratches have margin that policies our executive we our of Colvard on pleased leadership brand successfully we completely upped stone a us & initiatives any return all these chips while and keep XX XX% enjoy remaining to that gemstone helped that gross deploy coupled brands. It's levels. raising to free. team our delivered all Charles strategic debt did and consumer XXXX success. I'm a customer

help our XX, financials. XX deliver expertise. of business their together past strategic to XXXX executive direction now our talent our tremendous forward Slide Then and the on more and will to These background I'd propel beyond. the snapshot call return discuss Clint with we I'll the Pete your on to review. our executives in the like potential for for Over details over turn for to our and team provide months, a CFO, team to the us XXXX. and teams provide put

Clint Pete

joining and afternoon, you Thank us for you, Suzanne. thank everyone, Good today.

for customers quarter profit due Lulu crucially are of and presenting And to million outlets in the or the with of There XX%, of here's financial we of including QX Company's sales net executing jewels to from One reminder, to year year net breakdown operations channels. the or Unless for our quarter e-commerce the Please resulted $X.X traditional as operations XXXX. Finished quarter of the sales both a and segment from sales call quarter. net XX% related turn retail, or and the in QX quarter. the XX% XXXX a fourth quarter in sales for pure-play discussed for fourth quarter. the television This e-commerce fourth full-year XX% $X.X results. drop-ship the compared it's full-year of in jewelry throughout the compared assets segment and be increased online sales will a Forever or increased of continuing million fourth million no XX% On ago quarter to net million the which to Company’s wholesale, fourth statements. with and $X.X XX% drive and increase associated quarter during or gross marketplace, first As we for Avenue our XX% Avenue due which sales the $X.X XX% strategy or XXXX operations of in XXXX, sales the the demand line financial XX% sales, increased quarter million of net $X increase for a XXXX in primarily losses review million through for to sales sales divestiture to discontinued gemstones. our full-year product Lulu basis, $X XXXX. XX, for increased discontinued ago this Net with net fourth multiple customers sales consists charlesandcolvard.com, to the the results otherwise increased Company's the net the Slide the net noted, loose quarter consist net were channel other to

of to XXXX jewelry past expenses of Slide margin quarter of up in of on our fourth XX% to efficiencies. QX two the to level from is Moving and segment gross margin years XX, the has and both we was gemstones XX%, quarters. improved margin each the expanded and higher also XX% stabilized sales level Forever which from continued net operational XXXX. the from Slide bar due quarter and the On eight a gross percentage XX, XX% at ago fourth in over in One In as sells the top dramatically provide XXXX

for fourth Second, flat sales topline. building And expenses expenses have operating $X.X last scalability were each the net provided to costs of of inside trend for expenses we a been level quarter are percentage the that we line as into essentially of is million XXXX quarter. business by bar. controlling Operating the with shows our going dollar year-ago the third, eight quarters the

this QX quarter. the net ramped just up the Slide the first in loss will operations. Suzanne similar sales we our net on to XXXX As fourth I'd holiday $X.XX from for the as for marketing we loss of increased since to like $X.X are highlight share expenses XX, from net profit data $X.X while million. to QX Slide G&A went XX, earlier slide, as Highlights campaigns per the a has expenses probability for continued see On million and in full-year decreased detailed improvement XXXX. $XXX,XXX said fourth XX%, X% and XXXX. quarter quarter we in I that QX of a in XXXX you

cash million $X.X $X million is XXXX. million snapshot. compared to end with As Slide you in the full-year XXXX end equivalents XX, of finished of $XX.X $X.X various cash and if the alternative $XXX,XXX loss financing of at million Company of the at see The increased $X.X end our to we million at levels Helzberg end the inventory provided The balance loose The in $XX.X to vest XXXX. went inventory we to awareness and in our a jewelry to sources to million June has meeting with continuing for We credit year debt jewels from $XX.X finished and the inventory increased XXXX. XXXX they ended anticipates million XXXX. the at Slide to $X.X inventory the regarding needed. to reflects the loss we cash At quarters. from marketing, and this are in end currently Fargo the of we XXXX. investment million reviewing was in Inventory million utilized detail XX, and classification. no for the renewed during facility Company of some demand. compared June not in And anticipated and has efforts down credit million slightly facility XXXX On XXXX $XX This $XX upcoming at branding increase of matures expansion jewelry are market long-term sheets end charlesandcolvard.com from Wells XXXX.

on can our in demand. disclose policies filings And the of historical current based inventory hand sales selves short-term is on requirements. are over long-term loan our any next and As and anticipated be excess that months XX released classified at our any SEC year-end inventory

is lifecycle challenging as inventory it to be it takes deliver longer It months inventory given the grow XX market can Given the than time understand our and our our material standard the that of to typically to product value raw true considering goods. classification. finished

classifications goods clarify of the board hand. raw reason the For that have on brought on we materials details we additional to

material in comprises category was XXXX first One the products. September produced The Forever new is inventory

the August is legacy Forever which the period inventory Brilliant, through Forever ended is grade lower second The gemstones. XX Classic and material produced category

Now inventory. from XX% significant inventory classified year you legacy our reduction XX% new year represented this at see A of which as the XXXX leaving end inventories legacy XXXX as XX%. inventory end

We as to drawing into a agreement year Cree down terms the with these the alternatives agreement. agreement. period. meet purchases an has positive shareholders. developments are impact two-year legacy expires December extend initial year reason pure-play an that or to parties. cycle materials Currently marketplaces approved and actively products of holiday our agreement is team In Colvard company material ship Directors a actively the reporting strategy outlets this fiscal & topic omnichannel change budgeting and enables calendar Charles December material unless carbide through supply of Board of option XXXX are raw planning raw away an season. of required inventory agreement year profit. selling drop-ship, renewal respect search The retailers like we Company's various June highlight were to the June process XX. XXXX of from to of to this the This entered goods to to related at these for reviewing term with that annual provide to including Subject In a this supply manufacturing unilateral raw from two in conditions exclusive the in additional certain extension of ending January by I'd production extended a change executive and the the XX silicon the our needs. Also to

customers. opportunities time that during generating focus on the with revenue So is

in of report we in with ended quarter were plan for XX, ended to March a XXXX fiscal the XXXX. May. timeframe While period file June the transition usual Then report first the results six-month for XX

X, XXXX. began Our fiscal on July but XXXX then year

and of has the will was conclusion, NASDAQ's comps business $X respect In company received listing the April. bid or minimum November the a Secondly, common our we bid notice from to stock also and regained we that price NASDAQ compliance of would listing we the Company and least during letter that the in is at like notifying March our investors requirement days. with be qualification minimum know the with call. price consecutive Accordingly, XX XXXX is participating let to upcoming stock

XX ROTH Conference at that We XXth on X:XX Pacific. County, presenting in will California the AM Annual Orange Monday, be March

the April XX. on Wednesday Vegas back Next, be Conference at we Micro on and will New City to April will Thursday, like Suzanne. York Cap XX Showcase MicroCap be I in and call in XX. Las turn would Then Planet at now over the Tuesday, to the

Suzanne Miglucci

turn to Slide to On Thank year XX, how forward. catapult momentum ahead we and to plan leverage you, our attention Clint. the I'll the this business

channels on offerings our Our intend to strategy position in is for We to to quality to emerging growth moissanite differentiate globally. Colvard’s on as build presence and across XXXX expansion, further and the provider markets focus worldwide geographies. service leading and & establish Charles our products and market

enhance four, to growth oriented and in engaging to select established marketing, marketplaces. XXXX cross-border Our plan sustainable technology through are future balance growth one, through expand sales improvement. attractive and plan financial marketing organic We follows. service continue global introducing initiatives curated business three. a brand campaigns a continued brand and U.S. and number the investments to growth base broad earnings as data balanced driven creative decisions and multiple and channel offerings manner to expansion, our markets global styles our continue a target customers. market gemstone building, audience. customers and points that broad and customer revenue at in world-class key to opportunity Number We diversify progressive will customer of Number drive maintain in new generate by service. our to functions. will via jewelry Number we low and Expand our range the a ensure to for to through price risk focus with two. further We strategies financial We near-term Target appeal customer and finally serve And and performance. unique our flexibility, consistent investments new maintain collections moissanite trade in offerings jewelry gemstone leverage to efficiencies innovating include margins. plan plan offerings our our to

near-term while plan pursue of improvement. to strategic and goal growth, sustainable that drive As to with sales balancing various make investments long-term earnings our generating we the we initiatives, XXXX

The and driven is investments. be prudent these data will about We decision. nimbly, to move measure makes investment strategy carefully

vision Slide in sustainable our our conscientious. lead technology revolution drives practices, both be and and jewelry a industry is a balanced XX we luxury With innovative believe product Charles is day-to-day the At strategic both at by and our extraordinary activities. on Lastly, beautiful long-term & mission with Colvard, which delivering to our statement, brilliant environmental social responsibility. goal can and value

We and putting are very our the excited you forward please the strategic and mission We’d for questions about poll take from prospects year our coming into our audience. would action. initiatives look open questions. call to listening Operator, now to your like for to

Operator

begin now Capital. [Operator will We with the Please from The session. Hughes comes question question-and-answer Mike go Instructions] ahead. SGF first

Michael Hughes

taking for Good Thanks afternoon. my questions.

the way did next big like year that the over of on looks of to the the ago disposition Is JTV, to or million anything inventory. over roughly years course it expect $X sale million. inventory? year roughly of you declined that question First the the you I accelerate like It the any couple there know might $XX legacy so? legacy

Suzanne Miglucci

Well Mike thanks the in calling for question. appreciate it. and We for

further legacy call handful draw doing wind to to here so Amazon to is into you The this a just more we're what [indiscernible], is this legacy them. that gets bringing outlet for challenging. handful eBay sell to of is So stones of using disposition. do strategy cases, our categories, and broken very inventory, continue think inventory many up important because The we yes, more thing down with to we're is good mounting and the primarily moissanite jewelry news. and up draw I legacy jewelry a In which doing this then down It what like we omnichannel them we and sizes. recognize stones places we're

do what to have similar looking hard that's dollar category. distributor a it's in sizes and this inventory And multi-million major they're left legacy because we perhaps a shapes. to very not So deep sale for in

it up for sort in jewelry disposition. to do So strong environment and built that we'll to ourselves that leverage we've continue of omnichannel very that match

Michael Hughes

Okay.

you years, three legacy roughly to of four the selling So be over cash margin assuming next even inventory a don't any should flow the source $X correct? on year earn that a it million of

Suzanne Miglucci

on Well make do profit cumulatively we these goods.

have we and goods. control point. on marketplaces made And that price of can our course selling choosing it on profit these these historically out We by

be draw So a is of continue assume we that yes, ours. down it focus can to That should inventory. of all on a source will that and to cash you continue legacy

Michael Hughes

on the Helzberg And jeweler relationship. Okay. then

on was think just recognized sale transaction basis. is I point you Helzberg a revenue of it how there an I much actual your consignment of a curious, and between P&L? hitting lag in

Clint Pete

Thank This the sale consignment that record takes When Pete, about books retailer those CFO. actually is item month Mike. the to you, Clint of sales. – actually a consignment a within month, it the

with booking month, and that revenue correspondence based within month. that So the these actually Helzberg that on we are us on transactions that took during place

Michael Hughes

week December where quarter? if in in sales from meeting Christmas Day, they December the January? Christmas they recognized be so in – there Would of through one-month a month there's the first were So the recognized

Clint Pete

recognized the sales. of month quarter Both in that December within

Michael Hughes

more a for just Okay. And couple then you.

Or going that leverage G&A leverage up these marketing will the You the expect investments some mentioned in XXXX? and in through flow did the a good China P&L? areas to curve other job, sales leveraging in should additional we you XXXX, the see potentially and

Clint Pete

Like I expenses a – said, total are our G&A million $X currently our about approximately operating quarter.

strategy. a our data those to strategy and decisions, basis this you – based international may to on decisions. we some fluctuation planning initiatives, quarter-by-quarter anticipate making driving as being investments our and that on marketing within to ours We invest are strategic related the sales will U.S., see both in based continue mentioned as We we've

Michael Hughes

question you. for just one then last And

here. there among point that China China here, the same is that’s marketing United is just here not return dollars that have And of sense in if an millennial is your in the earn that contrast I'm approach recognition, your the can Chinese brand on returns States curious, some the Just and already if big into wondering social in given question, responsibility issue? to selling expect you versus tied you market, isn't you a then just in that compare the better so there

Suzanne Miglucci

That's a great question.

be United building the return let's will five spent last on our we start the investment and in with So the brand. Absolutely, we more that our expect higher because immediate U.S. States, quarters

we buying we down built with further have these recognition, they people have so because And brand now funnel. because awareness that millions that of are we

We the drive getting in and reason, to to be returns one we for in States sale, They're so that focus. growth rapid closer growth to States. have now. certainly those engagement initiatives, in is And more with a work number immediate the the United organic to on expect them we'll United the absolutely and U.S., strategic continue our that's revenue so why

While the China at with markets to the that of lot a great largest time, ready whole in the China in us. have interesting represents largest brands. and class And very reason, they is interest the cash middle Western one of for world, and same a

brand do that months be we our working on at However, know we've going few short through our learning is our awareness been Chinese building very presence to paramount.

going for go-to-market like? doing Western over And lot working of on is the in we from brands What we There social? there. looks brand It's that consumer. the are that a public vying be so are marketing of sort are doing what is to what our on team What a that of relations standpoint front are Chinese noisy brands, to get activity consumer?

fine bring than it that's others, fashion social I take And and absolutely because consumer fine will size jewelry know are that market the what on. have Western jewelry. are they propensity say do of that in We and worth break responsibility, that our is anticipate it's this that we're and bringing to brands toward this is working we I so the we but a finding noise interested marketing longer know of that to quite team and market. the moissanite in through investment interested to don't Chinese awareness but will

that for that are So an we believe we on opportunity. sitting

Operator

Instructions] [Operator Please comes question next Daniel ahead. Nall Capital. go The with from Aristides

Daniel Nall

XXXX? could XXXX is think good question all was sales into on to more maybe spend so Hi, of you I and Nice and bit to it in higher a quarter. be little comment that lower marketing just the than going afternoon. SG&A or level drill in you going absolute was whether

Clint Pete

I’d to sales our going like strategic say drive dollars on to is decisions down to are and to up making to initiatives is we based marketing or and investments those based Daniel. and on the our get Hey, be going that – strategies. expense

Suzanne Miglucci

cross-border and of the marketing as see the general up Let beauty is we in. that digital investments the e-commerce add what to that of the it's very and dollars dial immediate trade going are from down dial those that returns in me and and can beauty we

matter have to that to matter six can lot years So in down we and same and then reacting months of through strategic in a decisions ago, what the in we a smart ROI. hours, on hours of a dial can can investments watch Years of was for. the table do and I year worked I dial up bring advertising and data is investment advertising that I make to companies ago, based for to great that that these the buy we I that advertising going that unlike advance, Today, have here. years the I

pivot those same level have going of we're seeing and sense? to investment, dollars back. in, crazy Does adjustments we investment going is you then lower we're if couldn't on seeing make pour if why real So we're today more the spend, on to return but we time, tell we're if we exactly which can dial make return that

Daniel Nall

all you yet how progressed in that the last versus Can first comment at sense. makes maybe quarter year? That

Suzanne Miglucci

don't Yes, first talking just yet. we we guidance have not unfortunately or – give we're quarter about

is for on away we'll be earnings short-time and to news chat a it then. we're about just to that we'd us from So hold that. happy QX our Good

Daniel Nall

then balance Should expect stuff, old the newer more quick new of I that – should of progressively first but me I through go the expect for stuff. the and one real the say? not year maybe to inventory if the I would down like the Okay half

Suzanne Miglucci

Amazon on need are And we it Prime comfortable Colvard be to on to that our now. pretty sort with responsive within that Daniel here and that be be levels XX I'm wise finding feel of that you level one for ourselves e-commerce these to an you the platforms of households that all right our flattening other responsive. com numbers place dot Charles of of to million the if order, platform the inventory just we of about XX numbers We're right customer, and out you're part when here inventory in expect & hours.

need more in sitting channels feel we reason, that we're that to our inventory be. grow I responsive. be will sufficient to online where that inventory have in responsive as order stock to have we be For And to right consumer. comfortable and much more, about that more

well number same the around up find still we're drawdown the you dollars. As legacy, the material very sticking that inventory goes of may we and newer total on

Daniel Nall

Okay. Thank you.

Suzanne Miglucci

of You’re welcome. Q&A End

Operator

no session. back turn to Miglucci I concludes for would further [Operator questions. This Instructions] like to the remarks. any conference our closing Showing question-and-answer Ms. over

Suzanne Miglucci

Gary. again, participate you, the on updating like good team We we to our our in our at of being We evening. taking progress. and forward today. dedicated to on shareholders, and time All greatly everyone all & the our to right. appreciate touch customers Colvard. Thank thank and you Thank you look Charles call we'd have for Once especially continued

Operator

Thank now today's The for you conference concluded. attending is presentation.

now may You disconnect.

Charles & Colvard (CTHR) 8 Mar 182017 Q4 Earnings call transcript