Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Charles & Colvard First Quarter Fiscal 2023 Results Conference Call and webcast.

Our participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions]

This earnings call 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. statements made. as forward-looking the the identify is statement which speak of only date Expressions

statements the based results risks forward-looking quantified or risks statements. and subject that of These actual are cannot and to and company's forward-looking of these which control. information underlying a are are expectations beyond and no number Future predicted materially of be there and our some forward-looking In largely those be uncertainties, forth or on developments set to from differ prove the could in, by can uncertainties, be contemplated will light assurance accurate. our

Accompanying Relations note, will a you'd Q&A today's e-mail which Investor section deck, of of slide session at the ir@charlesandcolvard.com. please be Please hosting the at is a recorded. remarks. questions call event company have supporting conclusion Should company's you PowerPoint The like the is available prepared submit, being in website this to is ir.charlesandcolvard.com/events.

turn to I like conference Officer. go ahead. Don Chief and would Executive to O'Connell, President Please now the over

Don O'Connell

part to and Good which year-ago going by had QX Charles Quarter on First quarterly while Colvard's effect revenue We our to XX% Ian, million XXXX afternoon, results. supply results. down chain and we're issues & fiscal delivered in in logistics report quarter, $X.X Today, due Hurricane everyone. to in the caused an adverse

million. fourth represented still the comparable over highest trailing revenue $XX quarter This months' XX of

purchases. eased travel consumer vacations, concerns luxury spent COVID as rather the and jewelry restrictions discretionary like and in experiences their believe fine goods quarter, on Additionally, consumers early we income many than

and drop inventory partners jewelry gemstone our industry, and in reducing revenue segment. positions, the thus in Softness their in resulting fine a across our experienced loose traditional in sales causing demand distribution overall forecast was

which However, upcoming co-op not our support our we as to initiatives expanded this business marketing relatively the holiday assortment brick-and-mortar season. in seem for remained steady in QX, affect did of

drive we in revenue presence our of the and current is strategy, the and our us position XX% on we online for QX, reduce and strategic elevate in channels to others. help said, to our which being uncertainty and comprising year-ago better with geopolitical brand that quarter continue up direct-to-consumer believe long-term With focus unrest XX% strive bolster our from dependencies and growth as against macroeconomic will to

We effects direct-to-consumer make in This our continue second-highest strengthen which in owned the only quarter, position a to part believe revenue the moat in the further Hurricane the throughout to property large year-over-year in on the charlesandcolvard.com in and of overall represents strategic the saw Despite investments our initiatives, market. Ian. history. due comparable economic our X% the company will quarter uncertainty slight market increasing decrease for we revenue,

that product on consumers We greater and opportunistic confident to quarters expanded up as will in Revenue XXX% sought feel the consumers brand website continue and drive buys. market resonate, come. to categories positioning our year-over-year, moissaniteoutlet.com was our with more share

year-ago diamond vertical. quarter to continued assortments downward Although consumers' better lab-grown and efforts an become on expanded the XX% and of to collections and some experienced have increase decline, pressure as our increased to revenues competition, diamond increased our lab-grown more Caydia, charlesandcolvard.com to demands and we our prices meet

anticipate broader larger our proposition it moissanite down lab value in to the charlesandcolvard.com continue equalize, expand revenues to XX% carat last sales growing assortments. bottle weight we We One Forever as on ground Our to to movement, were year. moissanite due represents our the

product steps remained to with at reduce Our as costs, to costs gross pressures. inflationary XX%, continue margin take for QX and rising necessary shipping strong even we

Pete, financials. initiatives. overview CFO our our to to of key over At Clint? the this time, QX an our on provide I'd call like return Clint turn I'll updates for to

Clint Pete

XXXX. for I'll the summary September a provide Today, financials key of quarter Don. Thanks, XX, first ended

our are in that to the that afternoon found we percentage bottom be Please our year-ago issued comparisons expect XX-Q, earnings note, can and all which to on. otherwise. detail this press we quarter Form release, Additional specified unless

We'll for net of Net totaled XXXX now start a million million the decrease sales revenue. $XX.X a of drop moissaniteoutlet.com, total totaled of XX% versus marketplaces, pure-play online retail XX%. and total, segment, quarter million sales. with ship QX includes or In $X.X net representing for QX channels XX%, sales outlets XXXX our charlesandcolvard.com, other for or which $X.X decrease

customers to despite mortar Net for of our flat and quarter Net for global sales wholesale XX% the representing of million decreased overall $X.X the website consists and X% or from net transactional period, sales current by economic sales. of brick our charlesandcolvard.com traditional the decrease XX% conditions. totaled relatively year-ago which total segment, a

Overall X% the sales as XX% our part decreased international with additional for finished sales and overall both distribution Loose closures. in quarter the shift jewelry net and restrictions inventory. in and for our XX%, quarter. decreased sales reducing their the efforts COVID-XX to net and jewels forecast distributors decreased net partners domestic Finished direct-to-consumer along faced jewelry strategies international due

cross-border While year-ago website remained trade to relatively the flat transactional on sales charlesandcolvard.com quarter. our

delivered gross the quarter. in $X.X delivering the XX% profit on, in million strong of quarter a gross margin we $X.X year-ago versus year-ago Moving in versus million XX%

by increased Our and costs inflation. was margin the impacted in current shipping gross negatively quarter rising mainly

XX% quarter. X% sales the expenses our year-ago decreased expenses of expenses XX% compared Sales XXXX, marketing and million of $X.X increased $X.X representing net XX% total quarter. to million to G&A the QX XX% in For to increased growth and support in initiatives for total operating

diluted income $X.XX the $XXX,XXX year-ago tax period. XXXX XXXX of benefit for net $XXX,XXX a an is to $X.XX earnings with our $XXX,XXX tax QX per compared income for compared per year-ago reported income $XXX,XXX, of We in net loss loss of the period. Included of net in share diluted or QX, share expense loss or a in

September million loss shares in XX, XXXX. XX.X to diluted quarter at for used share September weighted outstanding average shares approximately calculation XX the diluted the compared shares were Our of at million XXXX, per XX.X

program fiscal September an XX, repurchase of of to are per announced price an the under $XXX,XXX As XXXX, $X average an million prior of held aggregate approximately price as at the in company's that an $X.XX. of purchase have been update XXX,XXX stock shares aggregate tertiary for the stock our in purchase approximately year stock share repurchased program common of we

of sheet. a move Now to let's our snapshot balance on

liquidity our Our XX, capital as the ended position remained compared strong June million and fiscal we $XX.X $XX.X cash ended at total year XXXX. of with million quarter to last

to we debt. addition, continue In carry no

million our Our repurchases increase and the season, holiday support in our initiatives, in stock inventory quarter of Diamond build-in $X.X for to the compared initiatives. reflects quarter. go quarter upcoming and significant in $X.X growth operations to This cash year-ago our other flow the million used was lab investments in the

Our XX, million XXXX decreased working in XX capital at June $X.X $XX.X September million. to by XXXX

liquidity, one have access cash credit year. of $X facility sources other of July recurred terms XX, to JPMorgan Chase with XXXX on million renewed we our we for Bank, In which

through XX, As we accessed September funds through agreement. and XXXX facility of today not credit our have

Inventory as of $XX.X as $XX.X June September million XX, million inventory XX as XXXX. Diamond of of June to $XX.X compared jewelry levels inventory jewels holiday XXXX, $XX.X and Boost to upcoming million as support maintain was June compared million to Finished XXXX lab XX, to compared XX, season initiatives. million totaled of the on $XX.X to our stock was XXXX. $XX.X million

shareholder confident over the to to call With value. summary, we I'll strength and back remain In that, financial our Don. our in turn continued increase efforts

Don O'Connell

Thanks Clint.

in or approach $X market growing exceed of categories addressable been jewelry Today that believe moissanite to this jewelry capture of synonymous we goal greater & Charles the made well-positioned one years fine to conscious potential not lab-grown Colvard with and For Charles Colvard gemstones. in We billion & jewelry is for feel the gemstones make for market. this a synonymous given has the the space represents the our with to mine and hottest share XXXX consumer.

positioning With I'll provide by being We've fiscal marketing jewelry that consumers. made, strengthened strategic on ethical to for mined conscious and not the an campaign update produce expanding and recent commitment our XXXX initiatives. today's fine said, our highlights and our brand

as I'm year precious strive we XX% to that for attain metals maintained pleased fiscal utilization report to XXX%. XXXX we

mined gemstone Our to and that jewelry made, competitors own own further to category delineate goal to and moat. from ourselves is not our the

of we this and origins to We the today our their consumers more care have jewelry. website support about begun of and as that fine strengthen a strategic finding redesign now direction are educational content

to awareness, digital the and our Jeweler. includes in strategy revamping and efforts Report, content investments including are photography we alone, XX the quarter go-to-market Robb our publications on National marketing capitalizing Forbes our within and Our press increase and production overall as BRIDES, bearing hub were visual believe in video these Yahoo!, initiatives featured JCK, fruit We studio.

and in and We've diamond a bring collections our product and us position our space. collection, grown our leader jewelry as launched Collection, Couture new with Signature fine conscious meaningful latest fine enhanced jewelry color and we grown bands, will believe men's lab the we that increased new awareness. us fashion assortment bold editorial and our press collection; categories Recently expanded into lab garnering

on based consumer virtual to diamond real-time lab-ground both showcase our for and the appointment to our consultations bridal One we've assortments. times Forever and feedback, Additionally Caydia our increased consumers in educate moissanite

As have bookings a increased. result, our consultation

opening one-on-one tells data allowing experience to signature Our opened after first footprint. our consumers consultation. likely our firsthand retail more to that us purchase jewelry We've Further our broaden with RTP customers press our from our and significant us preview are a much We relationship showroom forge the located prior influencer based to at press received on October exclusive XXth. during local event region. and in headquarters coverage Carolina North

position key product this the market. in climate We a to and believe, remain focused it and on categories grow to putting overall effectively initiatives our is fiscal for current total strategic thrive addressable economic year important to weather us these

We on diversification. remain hard focused

ways drive events, innovative all For consumers. stream bridal, diversification outreach and brick-and-mortar to beyond experience customer new build ways into new go that depth the Charles showrooms, launches and like like shopping, & to live brand press our and audience us, Colvard broaden product looks industry all

core emphasis made, a brand foundational movement. We look further Our a lean to messaging to leading us positioning on strategy. our to us this is consumer this delineate as not to into in education lab-grown mine and fine-tuning

lines turn I'd that, to to open for operator to over With like questions. it the the

Operator

session. begin now first Investor. from [Operator Instructions] question-and-answer Private comes The will the Mike Miller, question We

Unidentified Analyst

How guys. are you doing,

Don O'Connell

Mike. Hi,

Unidentified Analyst

retail I've then the quiet time was sure was the thought we home next who rolling out CEO out in for a not as we now, young to the her. Internet a quite were the while been the Then person, It shareholder was a I stores. she parties. lady literally they which when the And what doing since and and happened doing or marketing came door. good a job went had very were

to of like we do point, talking stock's go part XX a XX might bigger we've the in nothing's we being for say, mean, a hey, at better years have company off seem and But and going going XX selling At the this the years later here. years, ask the to you doing organization now. we're we're be we what it direction. stepping the and I I because and been $X mud doesn't We're best Board right?

to So something's got change.

Don O'Connell

comments, about Mike. the I a Hi, let's Well, little history. appreciate bit talk

exceeded past we've as the as the highest So years, the quarters of all two eight revenue history in targets in the last revenue well company. the

also well. profitability as quarters let's that. So We've eight course talk over exceeded just the about of those

Everybody going make value has if our in right to who of book my in they're the decision where is perspective, want from now. in they're direction invest they believe going. they Certainly $X.XX to life a at in

way So book trading we're below value.

two cash between years. last able the undervalued that been to we've we're the up build So over

while kind we are basis. they've So a completely the predecessor the in into for the shifted where foundation a business we've prior direct-to-consumer or organization of building today done great all of more my job

company a right a that's we the at If are a also We offer the us consumer. We're to not has to company single now a company. that direct-to-consumer limited products. you look choice product. We're multiple

kind moving we launched product Mined is have. our hottest moving standpoint ever which believe Color, in an Not Made, perspective. We better category inventory capital our positioned in, forward. is from is just than the We also a campaign we're of kind new category, We which believe which from a the of, that

We have inventory. active

your of to are who state ability be. little biased a were kind Berkshire years we with where critical Obviously, Richline of and Group, our is change I'm and disagree the much we to kind CEO where and we of, really strongly the world my And future the today. shift are shifts current at and to like it interpretation we're and of going changes. going to, I'm as So Hathaway's where adapt

my portfolio you CTHR. look just if at not So limited to perspective your entire

Fed living I'm similar yesterday. has are Certainly, changed shifted the sure you're X.XX basically of of beyond changed across the seeing points are board between and types just our effects interest cost that basis climbing, rates another control.

business. We are in a commodity

We are in universe. a discretionary-type

consumers go in to direction. may another So shift those

of an stayed strong approach now there's our were, that really that look faced we the just feel definitely for of which a the we headwinds. most which numbers the if have us. wholesale If at now we XX% business. wholesale still course was thing you is incredible opportunity business we So is right business the our direct-to-consumer And where exciting

know While on decisions can based I and our understand position make your we position, those certainly likely all those. basically

again So far below below book, we're book now. trading right

we did So purchased of a $X.X program a million or stock about $X of shares worth program we shares. repurchase X.X repurchase initiate million million which

So value money. doing. for our best we we're we're the believe We what in that believe

the Unfortunately, at. with pleased do So kind where we're and putting economy. our we're of some pretty money have with direction mouth going headwinds we're we're is. the where we And the

to to and is a products audience really on ability key. adjust ability bring to appeal our broader to new our And and wider

be to Clint past I'd with and fundamentals. And very can you happy could to than and set that. to we more go today agree business appointment a we dialogue we my can the open Pete, talk an just I'm have And up CFO. So from years disagree through and all with

Unidentified Analyst

I per question I are are to doing circumstances. on. bought or we down better do a the higher going better bigger are given share for the continuing is a the stock. that you're that be to saying the going question is to big needs years a out we good guess, Earnings maybe have what's getting organization? off a big we currently next good some discussion half better going the Board with hopefully. not are a is the being the over there at dozen and path shareholders significantly The move price off maybe are things of part job Not off agree we

forward. So needs I be question, that's really going my think, addressed. And to that's... Maybe

Don O'Connell

Yes.

talk a that bit. little about let's So

price the for right? So looks at command certainly possible want life in life that obviously these should a in mean, to everybody So I values, maximum be consideration. best value, we even the

the every director vet So as a to Board of a CEO as looking plate. as to our we're grow business business, comes for opportunities whatever the opportunity the and and opportunities at across kind

have that. forward with So certainly be price a wouldn't or again, we right that can always probably dialogue best consideration, the But the we for now time talk can or it.

of call I'd a with more So happy back you set be go up kind and on forth than with to Clint. that.

Operator

Peter question The next comes from Johnson, Private Investor.

Unidentified Analyst

year XX% done ball rough this looks a of the here? million Yes. one you I'm inventory Hi, in in that is right. out quarter with but it inventory we're strategy ago at hard when it What like is math why a direct-to-consumer. I if the building obviously, crystal guys broadening up markets mean, a there. $XX.X is literally business you terms I've no the XX.X% and the I has was same over increase undertaken time of the do having the also embrace scope products if have access

the or there's that those even low softening other that the price there for companies a of if the – enough going I sure, going done two inventory the Just that paid was having out about period I lot But not $X.XX I months over a there's understand haven't last things. ridiculously be inventory, matter sure not too and stock. low. price you six a way. we hope not I'm have far general sure building three, you pandemic rough and just why current the buying that. the articles during no I'm you strategies if of the stock would not behind of seeing were perhaps guys the we we're that mean why -- know back is question here also to sure

Don O'Connell

Yes.

that. appreciate So I thanks, Peter.

So number that was in before the announced last when announced or one, on we stock the that quarter quarter QX. buyback

in different that over we I'm albeit kind of agreement three-year statement. then. when little So Obviously, a was period bit probably you that the with a climate made that's

volume the our daily percentage liquidity. x actual So buybacks, only of look number buy if per you or at can we

if we'd amount more we to So foray kind be limited of of there. a that the to even approach, wanted aggressive make activity into

with So and preservation would be that cash be now. that doing would right and important comfortable not that could pretty we us you critical be really to

the I as is far was now. our that would inventory As just the say inventory close year-end million at of million at it $XX.X our $XX.X and

place have one Number of agreement things that agreement, on take our supply a two x with that's we moissanite And is supplier. for inventory. we So number in within provisions that. to the have of

and quarter the where delta see between can this wholesale gems, is. look the just in the softness loose and side that's the Given you

So certainly entire address and forward. of and we all we're factors moving owners as the my of will accordingly team, business from at And things needs. those business those looking all

be able the to when fact one that COVID, same growth businesses, different supply people and By out in other difficulty to we ship a had pick the token, to Asia Pac closures chain. we that in whereas that drove we we There the were during regions. COVID is is the main in where back really of are of growth our learned having China transition supply inventory and chain the drove of had due there and the things lot for our issues

So strong confident a and we've maintained level pretty we inventory it. feel with

over kind had a cash with the large two last cash a of buildup years also We've position.

looking jewelry. used the much because look both. composition of finished at it be at different We So it's in inventory now kind to being of inventory we're than

So platinum with a fine is gold commodity. and jewelry

gemstones. was primarily it liquidable whereas it's a the cash concentration pretty it's very much – us, loose of past in So for

being for a moving diamonds us So build keep percentage a as said, and the business see category of the inventory obviously, need percentages to product our well which that support made and also large Lab that that up two direct-to-consumer inventory on category as model we've you ground business. one investments in as being to sales launches, with the climbing make is

in So and we forward an kind to on into and look make partners holiday believe is be to we're inventory keep but us responsible there to. look position taper with and back of us whatever capture good heading us to then to to moving adjustments need a eye out necessary whatever we for

Unidentified Analyst

realized long-term I the sense inventory That thanks get only. to and made Okay. clarification, the for also inventory

So back distribution try different up centers in were you announced open that while around areas you going world. to to also a the

I Europe. and about point? was think China, on what's putting we had with those plans talk or started with there we Are that at ICE, perhaps happening this

Don O'Connell

Yes.

overhead So low point those and both are strategic whereas entry to low cost. very or of partnerships, low a

it's pretty of So on percentage sales. a much just a partnership

are these So distribution partners.

So partners and products. for They our our them. our pay distribute carry basically, sales They report goods. the

support So there any carrying with is no carrying co-op-type or yes, cost associated with – other arrangements cost basic with them. than cost

Unidentified Analyst

it. Got

Okay. Thank you.

Don O'Connell

We're pretty good there.

great Another plan.

Operator

The Capital Matt next ROTH Partners. from Koranda question comes

Don O'Connell

Hey, Matt.

Unidentified Analyst

This Matt is on Ray for Koranda.

gross you a little was into guys marketing. So continuing little dropped can guys we then I of see here lean you that on sales bit if to provide also there. bit. those margins both of a And wondering points and color

Don O'Connell

Yes.

we're direct-to-consumer. certainly, to driving more So

to and continue the going opportunities us. and we're marketing feed So sales for to fuel

new and strategic and investments to we As these in make got advertise products, start build to those those. support businesses we've

model bulk Also loose a just business ship much which of different to is as shifts wholesale basically direct-to-consumer more than the model gemstones. a

need we model, support. direct-to-consumer the On

create of photographers. of and probably look kind we leading space. So different We the brand we need an this need feel brand personnel and to upcoming a need in videographers,

kind that feel. the headwinds a The doing is fantastic of on house. seeing believe We new and transitioning the strictly we a is job we're look job. feel doing of Certainly, wholesale we're side the wonderful the team that

look kind margin. the the taking side the margin of the or certainly is norm rate new we're the as far run new equation, As of at what a on

had where still to As of That's still towards. I've range. We the the look to Event, We which XX% all because We In just stated couple at over the Event jewelry quarter. some goods Diamond wanted a to margins, there did had which we a industry leading quarter-over-quarter. within the and things we Diamond wanted are see move be was what look we holiday. impact and through for there. we test XX% in margin

the And at cost. really was thing right I there us. wouldn't important but concerned So one to the now other – that looking that shipping thing say major is we're is our

needs. goods become individual direct-to-consumer as foreign of more shipping to by goods able We're over one. Certainly all a and both be consumer satisfy to we're model, moving we domestic one the

So our considerably. shipping did grow costs

an sure that of trying we're eye and get control. make So to under basically that on that we kind keep

how that that? consolidation do points. we from do shipping do And We

aggressive So we've already there. gotten very

leaning certainly holiday, increase in be So that. we margins would believe into place for there. going believe we the And better we're to that a from

Unidentified Analyst

sales pullback noticed marketing one just and I Great. kind Also That’s Thank marketing changes digital budgets given have side. of the on guys if industry? marketing you. in super helpful. in the question more was any you the broader efficiencies, seen across wondering we've that

Don O'Connell

need something informed definitely very that to really, we and dive database It's decisions. really into make

awareness the past much in buy others is it keywords those our and and some in more king complicated marketing to our getting tactics and before, are search clicks we we are to to about, over forthright complex get namesake. and who predatory per like cost down. more terms specifically alluded and our become as And and we're brand utilizing building I what showcasing year charlesandcolvard.com and and So are quarter

eye an those. keeping we're So, on

a So lower-funnel-type to to to right make do we've marketing. got We the sure mid in deploy our place. we capital approach that

more and like now conversion-based, started drive but as to conversion. to other to paid the we opposed in step So of some side. organic We on love we've types opportunities lean

towards awareness more So, more capabilities. video building, our

that we're direct-to-consumer those. looking we're time monetize we content that in shopping live stream, can cancer investments as to across board, video capabilities about So, and making alluded to spoke we the our the

to towards, sales drive side to So, means, We'll in look to we'll and what kind programming, capital monetize. of does spend direct long-form That and more some ways and more the TV. mean? look that marketing connected either response

is mindful cut very but of back, are of very, it's to time cycle, our two to the a the spend. year months We're pull back month destination. a We've of feel anything So, that into everything hottest the during quarter. important to and the right? This leaning the most the our we to holiday, heading companies season. into to difficult go is business we into Most what trying can got we're balance part certainly, drive

Unidentified Analyst

Great. Appreciate it. Thanks, guys.

Operator

The [ph] comes Maga investor. if that. from I'm I next question a Sanjay And private sorry mispronounced

Unidentified Analyst

Don, Hi good afternoon.

Okay.

wanted So I ask I give could about generally -- of know you kind don't just some provide forward. visibility to guidance, flows but going if you cash on

like of has I spent one callers up a been inventories. of previous think think I lot the cash mentioned, building

this So, does that Do going projections? see cash forward, the flow What eat the flow mean, are up how lot how inventories these do a cash going of forward? -- we to should going year? or expect I you positive we expect forward

Don O'Connell

Sanjay. Yes. Great question,

my time as We cash So, we're inventory. the as at, direct here, as I'm got very going to we comfortable be our far We're where far tell you holiday. our in comfortable way to in cycle perspective believe for position. team from stock of we're and as ahead my

required So, holiday. very purchases to were go orders are made-to-order, than little special in into moving going other that

we're feel positioned. we well So

will start to inventory, and that cash we or to that before. don't success as of build believe certainly, holiday, up we we the this cash and this One the with guidance into heading flow, give again. the sales you anticipate we which caveats stated numbers with quarter But

kind or get with to kind to an and and understanding ability of community to are be and strong come. quarters of where kind our our vendor negotiate the of Our critical be current will arrangements we agreements of

mindful clearer vision So, we into and we're a quarter preservation. we back get But as cash mindful We're the certainly I this of have don't but that, get to inventory. want to of will start here. cash

Unidentified Analyst

diamond And guys contract year lab on focusing the I -- the so. lot moissanite. supplier the been you have for in space know, a or past Okay. on obviously just the mentioned you the

from we year quarter. down supplies to in how about So, look to going focus there were the on and think have moissanite, how contract, quarter based coming right? this So is And the moissanite be last increased should And to the that? going this sales the we purchased think years? given at I an on be are that the

Don O'Connell

Yes.

pointed So, a very question.

movement right across The now gaining the moissanite traction lab-grown benefiting is moissanite So world. is industry. the

Charles Colvard definitely is too & as benefiting so And well.

wholesale saw this I being they headwinds literally should build of inventory anticipation and the just concerned that of was side we put think, should where up independents stock and whether equation the in came quarter whether inventory. or they on

recall, we into over you If took when position. as I agreement the longer-term a supply CEO, transitioned first

that throughout. helped us definitely benefited us. So, It

in, helps supply definitely consumption continue certainly at the that look those the So kind of coming We'll but we'll models. things. look kind at of to

property. We also have motioniteoutlet.com as an owned

of that growing lower the kind too So with as of cost hitting particular is business well a type product that's the market.

going that, the so dollars to didn't goods. So the and cost in Whereas more multiple past, have have a to us consume to and we're build pinched look that. consumer for and alternative with stones for may be now looking product we

comfortable. So we're very

right asking moissanite. in certain the SKU in very It lean on the and will and Diamond of side the low We styling consumer for was lab that We ground now happens just were house. so count things. in

product merchandise team as as color So development collection, for with a fantastic some diamonds. the our lab-grown incredible well analysis, mixed bringing gap did doing collections a is job future which our my Couture of vision forward diamond

on will now we look engagement shift value going gemstones holiday, season. it's of now Right bridal a a a for and bright and event primarily more right now, larger you'll we But focused higher and have proposition. and is moissanite stones, which and on engagement balance which has

period. which increases of seen this kind quarter, we've that, believe the across we in So the board up still until a moissanite, wasn't bridal

So the month or next having we in period so. in anticipate the vital

products So, kind our going to strong. of where But very, look both future of to we're state to be. are of the gauge certainly, that very

has moissanite. but and been business definitely Diamond to the be, moissanite It core it continue is will Our will we opportunity. to grow continue

Unidentified Analyst

Don. Thanks,

Operator

closing remarks. I over Don back That President today's the and Executive any question-and-answer O'Connell, would like conclude to conference Chief to for does turn session. Officer

Don O'Connell

Amy. you, Thank

are to we're CTHR While of On current I Manotmine we that today. and & market. here your and at in movement. interest understand our Charles of want you of environment, behalf certainly certainly impacts our support the time we products ability continued our Colvard, the And we bringing kind of everybody confident your for to and thank appreciate

Operator

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

disconnect. You now may

Charles & Colvard (CTHR) 3 Nov 222023 Q1 Earnings call transcript