COO - Earnings call transcript Q2 2020 | The Cooper Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 The Cooper Companies, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please Instructions]. [Operator hand over Vice to I Investor would speaker conference to like Management. Duncan, now you the today, and Risk Relations President, Kim go Please ma'am. ahead,

Kim Duncan

The Cooper afternoon, conference welcome Good Companies’ call. and quarter XXXX second earnings to

call, the results we release the included for time discuss the use then remaining will Q&A. today's in earnings During and

Officer Our and Brian Officer; and Chief presenters Executive on today's Chief call and Financial are Al White, President Treasurer. Andrews,

contains you Before of including forward-looking to we conditions call I'd any this begin, failure statements operations, results or anticipated of acquisitions regulatory statements, remind guidance anticipated that other to or and and all integration benefits. achieve their conference like regarding market

the Please at for GAAP to measures. call over to filings, line are coopercos.com. today's subject e-mail our or described Statements to conference please our XXX-XXXX including Form financial that caption depend differ XXX- assumptions, earnings Should data release described opening I'll call to directly that under materially actual investor from you statements XX-Q those are available and his have the our forward-looking statements are on our comparable or methods also turn forth any And could future and uncertainties. company results most Events the a release in additional call, refer subsequent questions following the Al today's be Form actions of incorrect set call the XX-K and cause in measures. may are remarks. contains ir@cooperco.com. website Forward-looking risks SEC or and Forward-Looking in and Cooper's for now imprecise filings, all This earnings reconciliation of non-GAAP measures at on which of those

Al White

these good Thank times. and I challenging staying afternoon, during safe your families you, you are healthy and Kim, hope and everyone.

the COVID-XX the we our continue employees, all world, to have forward Cooper stronger employees thank outset, our programs well we capabilities hard people, increasing MyDay, new locations facilities, top all XX,XXX Rica. so distancing. key moving extended spirit as includes partners. their long-term again, to of robust as through of workflows, We expanding and that's our a terms offering health us and normal to at providing online employees will by class to their to shifts, and only us the such customer reps. service and high thank getting supporting of families priority. enhancing and direct we stayed protocols the continue expanded customers employees out strong maintained culture also From our and to well products company allowed our our Before safety manufacturing from We're results, reorganizing moving social shipping to coming all facilities employee around and been pandemic. activity our distribution whose business we sales including recognize work instituted this you. happened, meetings, focused programs this forward. accelerating our everything the We've training there of dedication I global furloughed ensure our patient efforts, layoffs, launching small our health Costa want Throughout strategic business company, supporting paying say you as Avoided in objectives, output and demand virtual job and made benefits work, plus commitment commission products, and programs. request, resiliency upon and and our including and staggering and amazing being serve assistance to innovative believe employees expanding on compensation, of new This developing our world such In into home and our implementing

offices positive OB/GYN and seeing signs for burnings very we're in favor. offices driven be our the to control with Looking ready reopening will for we our of and are. but difficult We fertility CooperSurgical. by CooperVision real clinics the but reopening the optometry trends performance of definitely future we moving and It's can be the of ahead, cannot the speed forecast

into on note numbers, I'll As we be the a move currency constant percentages reporting basis.

we revenues QX, Non-GAAP were down CooperVision $XXX of of million $XXX of For with $X.XX. reported per million, revenues $XXX and CooperSurgical million, share posting down XX% consolidated XX%. revenues posting earnings

roughly product grew up Americas QX, share areas market For with the multifocals share X%. hydrogel better take due care quarter optimistic X%, the we industry XX%, in daily improved others CooperVision, to began minute, to X.X% the and grew Biofinity negatively which gains experiencing than held strong our I'm XX% world with a hydrogel impacted to I'll market when XX%. Asia-Pac XX% the global and revenue declined to down QX XX% silicone very This X%. but during dailies were XX% XX%, the negative Calendar get silicone regional down around EMEA market the portfolio. a continuing But against fiscal move we'll and our also included from Avaira year. COVID-XX. calendar numbers impact our of and torics All for March to the

quarter, in we had saw impact was revenues our significant the with and sales the provide reported I To XX% where Regarding ultimately tagged roughly primary $XXX it. of that. roughly let for quarter, fiscal around worse economies million million quarter, $XXX dollar month. the me impact world in was we throughout us At the Three negative but down felt most highlight on one us. point during the color fiscal closing quarter, areas QX impacted than it and the April the

revenues normal impacted account this these for new the effect office a XX% for and roughly of new disappear. fits. closures on fits In First We our environment including us was million estimate quarter. essentially $XX of trade-ups around the negatively

to not estimate part the offset our impact Internet in Second, we doors was big $XX as sales pure activity focused business. channel was and but This reduction optometrists of We distributors by closed that's and negative and retailers, inventory liquidity. of independent experienced this a sellers around offices on modestly million. a

in often lenses chose often. quantities this to ordered of less normally some reorder forecast it's they would to who than meant normal. Lastly, late consumer people wear and remaining ordered or reduction a This didn't customers recoup expect March up lost smaller more our or but to XX%. as sales, And when. we lenses certainly meaning saw glasses April the made wear have difficult products to used extended in either roughly We other these consumption,

still to optimistic. an revenues see We clearly roughly expect Our so market we're return economies improvement research down reopen, XX%. to wearing did May, indicates but were as consumers habits normal in

were month the that and there into side, encouraging positive clear continued the as signs On progressed, June.

pretty rebound As parts sooner, China with where fact, like world in in the countries quick a growth showing matter May. started reopening seen of a we've of economy

right positive channel assumes as a but For have QX, sales will it's conservative fiscal we're with a slow to But to Hopefully inventory minimal be results. ECPs CooperVision conservative, trends prudent just traffic rebound slowly and year-over-year. a patient difficult in for This QX XX% mentioned impact as on it's we're XX% return forecast currently even down to to in stores. seeing. the our revenues this three now items reopen major the is I expecting be

ones. we’ve recently to Regarding products, new launched happy two I'm report

toric released the toric around Our rest the parameter for rolling it range And where the previously Biofinity I'm available in world. has in extended range to also happy been Clariti torics. now sets reopen fitting to of toric daily the our we supply MyDay the for to resume product giving progress and report the available multifocal we're market is pulled silicone U.S. now on out today widest markets also significant to We're world. able made and we starting stores manufacturing, around sphere as and placing it.

through improvements toric Clariti earnings And our data months in us activity be reductions this so position our QX. plans, patients our aggressively of expected year moving teams temporary last distribution is on reopen. our commercial significant market, purchase accelerate quickly a call, discussed fantastic and and to manufacturing to to practitioners put opportunity. realized efforts essentially with to the earlier respect hydrogel capitalize as line, we're on We're we indicates, now several continued and job the lenses. prior this silicone our new critical manufacturing, in in to teams we ahead offices as frequency on so As startup fitting saw MyDay resources daily survey especially are with shape and great usage into silicones to this We in this similar daily unhampered

management quarter, the a significant in XX% growing with increase bright we've report perfect Moving million a truly the their this from I'm approved their only reopen. revenue. optometrists on to happy increase look seen ways for best $X.X market. And patients this to value treat was MiSight, they optometrists is patient as added as want for in the spot to offering to interest the practices products a FDA flow myopia fit is to as available. MiSight And

Additionally, doctors the the process is can parent online. aware control is pricing the very difference life and the a when product available interest product made make of MiSight, a they're in high child's and as huge not

pivoted with parents and to clinically market MiSight have management for slow This Success a we with in QX. product clearly the the to it care been this curtailed product. of and then an been, ahead we the $XX expectations. reminder, myopia myopia into and as costs part where not dependent to customized price as may From response a than other The over our has to target and events. $X the eye deferring our sold is the the in due appropriate in previous but with with fitters to we Brilliant the optometrists incorporates perspective, well proven year. training expect a Futures, myopia lens children. be growth has we $X charges holistic sales actually As myopia additional has next progression certain recent we million management offices the all help solid of our And have markets is we certification to training connect is go we contact fiscal XXX their offerings. year certified investments called remain comfortable being in investments any this as program management resources them XXX program and of fantastic. frankly, of continues to doctor sales process. lens approved million lens of own accelerate return The U.S., currently that marketing puts to In if certification now range. virtual suite innovative in been And FDA to provide practitioner reopening And full clear, their in our normal, on assuming million over us

growth touch on the the vision, me billion $X drivers on let Before industry. lens for contact concluding

world's the of seeing in it with is the X% this foremost, starts by increase up population out XX% globally year. last play with estimated wears it's been new and that one-third to where to We've market XXXX. First expected myopic, data, myopia, and roughly is this

multifocal. to see contact Additionally, patients and dailies apparent positive that daily silicone in the hydrogel we geographic in are also with FRPs from to trade-up interesting sales customers as made value and doctors lenses growth silicone torics dailies, mix, we continue glasses. It's hydrogel they new more are contact lenses as higher shift lens expansion buy have has both and wearers working to the hydrogel and as daily lenses. optometrists, legacy it And then fitting

elective the business of month was of in extremely CooperSurgical, in the offices started significant were revenue. the closing, was definitely alone, beginning almost fertility still began saw quarter. May were XX%. feeling to In as $XXX and of expect restrictions April March. roughly clinics we down down continued million, decline XX% quarter. the for and as through our the weak, bullish progressed revenues month very we We were the we But enacted, we a experiencing we but as OB/GYN and improvement reported XX% about surgery down month Moving improvement

forecast fiscal XX%. full the we For revenues being CooperSurgical’s to QX, down XX%

was April as as quarter, those was are to for traffic continue well in-process markets closed. activity initial the down treatments. closed, patient were roughly Within said But we for QX clinics their roughly or the remained down to good. stimulation important fertility of lag XX% on IVF. as pharma to but our and Clinics up to focused May the largely side and reasonably several thus and the fertility decline holding that expect segment, now allowed are business expect our sales around We will it's reopening down Having is patient patients XX%. world XX% around consultations XX%, partially or the as also complete that, sales visits was note full rebounding, entirely

month zero as office where similar this This XX% the a largely we clear, and down of QX. PARAGARD and due in surgical, matter PARAGARD, down XX% May. April were for continued be is those in decline April and essentially in shipped For in to QX, expect sales inventory in and placements May. we months, a is To roughly although channel in XX% products

indicates through research we'll return we May. placements offices reopen, positive signs saw normal consumer Our as fully to see and

production sales teams virtual R&D. several Rica, sessions, out of Within procedures incredibly build expect shipping this, the With business, gains. we and have transferring global canceled opportunity sales as world research around in available importantly, expect result manufacturing our all distribution which in our Costa providing So competitors deferred, let CooperSurgical offices product that, down Outside me our and were And the our channel and as a future showing in other continuing offices similar other returns executing product economies areas making roughly majority completing are including products QX products reopen. happen its and rebound marketing and reopen, in popular the conclude office and manufacturing with by our not a and to surgical strong us normal. been while share and in to making with we our now the on XX% open. of were doctors’ facility kept of into development IVF of continue procedures and inventory the teams will laser-focused for meaningful as struggled, QX, and training PARAGARD, many advancements numerous saying

our and commercial are solid in rock MiSight such our focused is product ready ESG are intact. our continuing Brian. are momentum engaged employees to intensely remaining capitalizing our opportunities well. results. objectives fully as and remains Our and teams on culture strategic shape launches like steadfast, to over with XXX% our long-term going are products on much the Key our to on efforts MyDay commitment building. better turn a I'm and focus dedication employees call deliver our With I'll that, our And remaining confident, to Cooper's

Brian Andrews

be And of commentary Al. good my Most everyone. afternoon, basis. a you, non-GAAP on Thank will

results. release a full to non-GAAP of So today's for please refer earnings reconciliation GAAP to

mention we our guidance items we I'll possible for and transparency Given the not as brought upon cost this items. for start, operations our earnings non-GAAP adjusted that impact, has comments. expenses to it's nor will time. at provide challenges these we larger of that costs, our my the issuing all the adjust to important uncertainty regarding the did to But are COVID-XX future and COVID-XX within be related of did any try But XXXX as capture goods. in much operating not To try disclosure

margin costs meant year. entirely continued decreased Moving mix, XX.X%, with due declines key no in to driven slightly gross for $X.X was being quarter ratio X.X% larger debt incurring increased to XX.X% our XX.X%, X.X%, experienced CooperSurgical's COVID-XX. margins. in in was shift million and we was The the benefit Despite to which the to consolidated in on margins reduction CapEx April. tax and higher the CooperVision's our while lower XX.X $XXX.X regional with was our revenues million few from revenue in due overall related business, markets to investing support driven of our zero repurchased cash expense roughly Non-GAAP reduced A margin and XX.X% the sales was decreased down gross customer buildup year-over-year options in of to times. Free shares quarter to X.XX employee of to by our to $X.X year-over-year XX.X% leverage results, decreased the PARAGARD as This largely of and $XX.X the investing and margins negative due resulting of Interest cash pre-tax continued Consolidated to higher of compensation, as primarily first other average inventory reduction collections, sales as such flow for OpEx XX.X% months operating XX.X%. XX% to consolidated of percentage comprised driven lower R&D top-line $X.XX, last second pressures, was from shares quarter. year-over-year, changes This flow products QX, XX.X% we million CapEx. decreased down we planned. EPS continued to million operating million. exercised this gross material by were $XX.X margin as $XXX.X two interest up maintaining of by $XX.X outstanding. billion quarter through for April stock the and nicely rates. offset was the from from by income, MiSight, million roughly million of effective by rate note items Net our $XX.X to adjusted XXX,XXX million. a quarter.

rate fixed entering interest out perspective, the a QX to locking FX rate impact historically seven of $X.XX, FX interest and lastly, years. EPS portion as in was We far an in low also This respectively. into debt, and to slots debt $X.X on floating year-over-year multiple our billion And revenue million for rate the a environment. included $X.X the negative from given

allows to entered Before financial couple like concluding, opportunities ratios touch employees continue customers sheet us strong to and points. ample as and We position it the puts a available. with in a COVID-XX with a to I'd become additional supporting maintain our they on on balance solid of pandemic to and liquidity. us briefly capitalize continue This

strong, to XX%, additional at expense looking currency. constant continue this prioritize Other expenses, are XX% way. we're XX% Al to share is normal. to the to revenues than at XX%, ensure but going few positive down continue a in our view trends position. return a as we in take at same taking to costs to CooperVision not items on remain our providing time. we portfolios monitoring control we're QX excellent long-term but the that, and on focused point, to allocation trends, extremely this and time information prudent fiscal in We're careful important, as We're a and current and we're in strong closely mentioned to product markets execute CooperSurgical to much position capital restrict want controlling to to seeing any believe and intensely We at ability while as them, repeat many both competitive down being remaining don't be want we we're

comments face be heartfelt echo prouder our like it and to issuing Finally, QX, couldn't staff you hand in the by operations, about saw our of back we I'd everyone continue job Al’s for unprecedented circumstances. to employees for all incredible from doing support my of an in With the the to own commercial thank questions. see to globally. of I'll I efforts that, and operator

Operator

Thank Instructions]. you. [Operator

Our Larry first from James. with comes question Raymond Keusch

question. your You may with proceed

Larry Keusch

do just thinking the various where coming going be about, guess pre expect I bit your versus month out did you the to stronger in little to product how are out you to I Al other of in see CVI. you when most do terms other a modalities? that come you Where words, And to see start think back you pressure is about April? of the guess, the think what mix? In side? talk post-COVID Could you

Al White

of you hydrogel silicone the our we numbers look I took stood portfolio portfolio. a rest hit hydrogel you example, mean, of in gave the our Thanks, kind April, portfolio of daily and of still legacy our a in when an better solid I the But it hit if to MyDay The than FRPs, up as certainly strong. April. at Yes. some monthlies if that FRPs, show out, throughout obviously Larry. was products month at you Well, and the you particular look those the wanted took pretty especially parcel our legacy

have been than declining took those anyways, most. but bigger So a hit

recover, optometrist And silicone That's of we today that's forth daily and on were with because as that recover do the the the we going in be as to think to very I we focus it's our research very, But it so where hydrogels. place also reasons talk clear focus and are on market and be to hygiene. look market is going we the to a to focus going of and starts because beforehand. seems consumer area. the that at

wear of talking If looking you're a you're day. about the it daily put throw end out it, good at hygiene, in, at the lens, it

clearly clearly the So are that is people that's about what focus. talking

with kind the I which of think we're market we we're sphere, from perspective, recessionary that daily have multifocal. is looking wearing if mass more clariti have for a is a because position have if in and And and obviously we a there successful. of ones good into a more toric somebody premium MyDay, hugely who who only we environment, strong silicone experience, go a

see So that's in what out and months going I think we're the quarters. coming we as come to

Larry Keusch

you'd previously, essence, that you like get what back fit there, this to comments, during to, second allowed getting and able that, then to relative sets toric your -- and And is, start do you as supply in your to this as and the supply regions your I you ahead in countries, to particular your plan? in that guess question period pull ability alluded to now well now building sounds of it were to for MyDay on manufacturing out

Al White

Yes.

the you had general, a and stores in the pullback mean, happen, so shut had because obvious we So down was I demand right? like forth world. Which around obviously in

But While a putting getting that during happening, that was to to we of key we up inventory. that and able work And was lines own and point. building were importantly, product, lines of were our production running. the quarter, continuing continue together

us. relying in on lines flying have to facility, other from in back together. at working Thankfully, faster. help didn't We but or forth, able about in control our talked we we weren't areas prior we And lines so I remember putting efforts. and efforts those them took quarters, our of Europe with and because a people we brought some places to we we cost some continue those on were accelerated that, equipment and how You'll in step did some in Europe

do success lines, our those had have did up, where of up we work lines only to a Our started them recently manufacturing able production of started have we of were folks we not themselves. was And have then the when couple that expected. we was, timeline, that we other lines, a we two the decent we ahead several that started. them When on amount hit

So I up, take the my manufacturing having job an hat guys. there more to a than getting It’s running lines off them bit quite successful earlier of those be started amazing and we thought.

So in I on And a we're going where we up. seeing stores certainly on, we say we're and people opening need mean, start lines situation back still and to metrics as now lines we're that those demand the coming and demand. demand updated have that retailers other right based where includes

Operator

you. Thank

from with question William Blair. Weinstein Brian Our next comes

with Your question. may your proceed

Brian Weinstein

there existing. about things Al Or matter as you versus start more coming the as other, more the hydrogel versus does new silicone that's important in improve XX% to think here we driving come as guys particular a and kind back is one it fitting? bit, one for you for of the

Al White

we Yes. you data of at so It's more new. into COVID, fair winning if share new the I than were the look as our mean, we went fits.

were share being lion’s fit our had the winning and we more we biggest -- clariti, that. that the probably that, daily market more were were where fit, and they silicones as We coming U.S. and getting winning Americas We share. of were patients market probably in the had right? new is here So Is the MyDay. in that's

And XX% here in that part if larger coming revenues from new fit -- So an you hurt U.S. new in That's kind business. data, that about new we of And look at was or talked the fit kind of fits. even of range important that us? our that's of

So I'd global a number. XX% say is the

at revenue look the that you in the argue If of here U.S. U.S., that's our could you XX%

new fits, buying have You have so and forth. supplies annual daily you people of lot a

and hit the reasons over think frankly that new one terms the that. of So softer, probably our We of that that in indexed people we Americas fits took thought. was than I was number of because

Brian Weinstein

is Okay, now, then we because think great. industry about shipping of for into all term of things the ordering, how the has you And you you here as like of the we does longer develops? about how prescription And industry, online direct, online. this? how positioned longer the then kind changed how think How COVID? as kind of in positioned And moving this industry term think do guys all think play industry Cooper you're

Al White

you're was some of I like an we was definitely see. increased or consumer think well, trend occurring seeing That direct trend. Yes, some significantly. accelerated holds and Whether probably changes, that We'll example that to shipment a as definitely not? that

for If direction. we did here able because money the to much you we distribution be support our mean, in put God, to market remember, I’ve thank distribution as a talked I centers we years a that couple about move how all time that our into and improve in capabilities. to stuff spot we're great

think move But actually going So daily ship have I even you're right have other a industry that an think see longer if or at can ship directly home. to that more you selling patient's to look the the We your I now, no you when greater products, to you're to office. to optometrist your silicones. thing

going go as that's people leaning that's to optometrists, think talking we when talk what direction when the I I to was about are you're we hygiene, towards. consumers, talk

offer? one saying, an optometrist here the the I and terms thing think of is that's other I products that okay, in And people job in acceleration that the MiSight. moving reasons I forward had seeing looking better how that of The kind office as of the we’ve can you're industry demand about do in

product is out. there's don't this to doctors docs want a it’s a are saying, miss hey, component But definitely of Some here. like unique where special

works I Now forth, that want it is I and behind. so to it get understand this and something

I bit little by say that. see would the patient in So see lenses. gets I go to things other that to is you're industry the has the a changes that area, the one then I of think doc, around think I doc. the going And fitted that's think toric those one Because

telemedicine to fit toric lens. a use to You're not in going a patient

So the to overall I to market. faster going grow continue think than torics see you're

Operator

you. Thank

with comes Our Johnson from next Baird. question Jeff

may You your with proceed questions.

Jeff Johnson

evening, guys. maybe perspective. you. Good start Thank a Al wanted from to I geographic

the mentioned on patient in subscription automatic that on You were new Obviously, drop a just more fits patients there. U.S. over ships kind plan Europe, or the you've happen reliance of got in some

saw think if you recovery kind I any helpful be So or you're the be how trends April, can with on color kind U.S., geographic help that. between least you us or wonderful Asia-Pac it'd you could would out thinking at May how provide Europe That maybe about of breakdown of region? if by

Al White

of Yes, I we're in in Because to grows back in can China saw Europe Asia-Pac the like chance But still May. get we'll think want when offices in in going mentioned see growth a a not could to I if reopen. get Stores similar EMEA that myself. in ahead decent starting how don't the that some I that. QX. are can. situation at Optometrist see QX. Jeff. -- come things some there's I surprise I news actually Americas. is are to mean, we to degree. me think in Asia-Pac you put are That's I I the reopening, it's get I in Sure. And look going, in to things to absolutely, growth of Asia-Pac. kind why we starting middle

progress making Americas, certainly. we're lagging that. So there

be had But at about No positive still of question signs, certainly struggled QX a going question in at the the kind to bit Americas be So because it have no to Europe out quarter that. where a May I if a I impact little in kind there's the tough we that continue probably you seeing where similar going the look May. of Americas, than worse it see was. quarter think when of bit for think was, it in another We're that. of comes you're we're about to beginning to slower. little

and March, the don't bit versus was July Does for the to us, like similar I so we my end by forth. little in way head, of with June, like inventory rebound maybe So a kind May, thinking some that make worse quarter. stuff that get a February, in assumes, you of up April That channel sense? a

Jeff Johnson

lost Yes. a on, hold then train of just for That does. thought second. my I And --

you were surveys I and trying as of there's visits, ways office Just other we're these to was our this. saying there. track doing In thinking, all

helps As than patient is those more my offices anything. the open on start new fits guess to that up,

consumption that, when the that need current to back wearers, lenses go that? the margin, gyms do for restaurants go people the office? and but to watching contact we the of on do On start When it's think some you by these things I they know like wear and people it only there all do into be slower like the like wears even is for social feels so to we're of because things go could in when the day, kind single every on a than office almost things wears that current that? going back reliance the recovery like more there reasons, just into new

Al White

XXs other little to trend starting two a wearing bit were their you're of the you're start there. be people are there. go see next are, home like mentioned people sports, or in teenagers lenses, office of the kind portion soccer right is softness I playing they because activity. I Yes, a one restaurants I and But dinners, up the FRPs, seeing of moving a starting that lot to because you're you're of we're stretch legacy as to until to going a of people to then and is, progress that that's to kind more right? is kind kind So I we're and glasses, out that of think their mean making going our wearers we little and to one that: lenses, seeing. see week, to see spot-on wearing slower could back stuff pieces mean -- the hydrogel on what right, the where And activity right? are starting those go those that's in is going either [Carter] are a I and more. did that mean a of of that's activity, work, direction, or market Because to lot right? for bit soccer of the or people back wearers

itself So coming I over the think right, back channel you're quarters. think work the inventory I

school in seeing on is to to data your moving right, coming certainly stuff. of fit the we the other bit and start as everything start think and I with maybe forth, new more here lag back, back assuming the the month that right going a come school, we're back data, direction, a so little that

Operator

Thank you.

Our next question Fargo. comes Wells from Larry Biegelsen with

You with your may proceed question.

Larry Biegelsen

could Al, fiscal of and QX? Which catch these fiscal in procedures what QX? need to Any -- there that? deferred grow I I guess, April, be up year-over-year guess, color to do you some would May. expect on to sales in from still be happen down from And

Al White

two think it a answer I separate the businesses, little for maybe differently. Yes,

get where For do can even up bit. we a I QX, can think we be we're a maybe CooperVision, to back flat for little situation

in the kind channel rush be because reopening. progress forth, that, I'm coming think forth as that come think for that markets COVID-XX. concerns move If depend confident back. a back we fight think not but products I of decent U.S. we us least it'll and will I of us couple up some I those to Europe months so PARAGARD QX. liquidity certainly fit, be PARAGARD. that the flat inventory then a look in spot. and to But and to we'll on inventory second hell at We're If And I positive obviously, puts so on can into be of back, a that in what's that highly like at continue, some we going be we continued on dependent already. for that we're look mean, ended the have that at in direction seeing dependent based trends shipping get do going that's on then and I use like to stores to some and to Asia-Pac it'll not happen CooperSurgical, of in going highly that

QX. The forth. does kind that all cancellation surgeries were at so rather of to So down The and or come show cancelled. QX least than work, end done be going that deferred it'll the rates survey back we have appear into depend, at involved with

then that's offices if are sign. So really a good GYN reopening,

clinics hurt return definitely Fertility lag right People direction sales now, so in, they are we're be to I -- going there. in going definitely be the growth We we do consultations, the they as there. on moving there. right forth. positive open, clinics are mentioned That's think process we'll are and QX in reopen. are little a I could in because getting the of bit a -- they're stimulation starting to

those yes, a -- go that little that continue, we if lag behind could in there. decent -- if But we be bit trends So shape.

So I fight of to in get going consolidated, to least say back would at yes, kind flat QX. we're to like hell be

Larry Biegelsen

and opened talk a that just taking follow you you're Can you've you the Al as seeing Thanks in far, about they’re in? with issues dealing How for with throughput? percent up. And offices, optometrist so what questions. think patients the any coming

Al White

world, than Sure, emergency large rather patients. yes. optometrist of around there's lot of a right? If have open go offices everyday we kind number that are a cases just They the along, them all open very were But “Open”. kind of of for been

have but lot right? they lot. of the come them restrictions, seeing they're one comes right? definitely a more in out of and sit before the degrees opening, Some and down in one with of that patient are area in they we of And parking opening them clean So up Patients to are more entire open, different by in.

in where traffic see that we're patient certainly significantly So We here California. like slower. your is at

U.S. many go You there's spots not the restrictions. to world, other the as around other and spots nearly in

kind varying around So world. we're degrees the in of

of So that opening, thing seems The flow is definitely I pretty clear that. it's hard would say patient answer occurring. more is to one to definitely kind be offices are that

still So go. little the are clearly positive, ways trends to but we a have

Operator

you. Thank

comes from question next Our Matthew Mishan KeyBanc. with

question. your with proceed may You

Matthew Mishan

the actually. in you’d question sales margin margin Brian delayed better Is for was I gross think you're lighter with the have manufacturing a think for than a there potentially quarter was given much selling CooperVision that I because absorption? impact Decremental expected I decline. inventory

Brian Andrews

question Matt. Good Yes.

So right. you're

So regional mix. remarks was in I my about CVI prepared that it talked by impacted

down had in we the a we So had revenues in markets higher declines where percentage like margin higher XX%. of Americas in

but the won't large call adjusted costs. relates a it to that say, we here, what for capitalized as out, costs, COVID-XX called did -- really Those period those manufacturing and other of costs adjusted get on I this costs we whole Now, earnings to and discussion accounting those. related sort we sufficed cost we into is

and our and normal to So from above costs, pandemic. beyond of our costs types that those at results, those incremental $XX.X that GAAP operations million reflects of look to if non-GAAP you capacity prior unabsorbed excess sort the and the were

those were. not that's bleed down And really margins why So into you the We're those quarters. they releasing gross and road. won't future saw see where capping you

Matthew Mishan

really way you then, And rebating the typically adjusting rather are rebating? going promotions about you as Do how to that the in industry, XX upon purchase industry do purchase of see of as about you’re far think any kind annual And see based supply kind contact days supplies? and supply. seeing to as annual the you the changes lens, consumers than

Al White

outside of I probably of QX and of question that give U.S. And world. even that some beginning at a activity, the quarter. and examples. definitely we of you more That's would Yes. saw we in the But when this look some

where ready had you see supply, hey, order cases but you're your can had a your year who if want go into optometrist weren't and get worth script extend patient buy I'll to don't of optometrist able were but to you I've supply. many speak a a get so a Now you to said, you supply, year months and year your you the supply, go quarters and another heard to to optometrist, three

eyes script. have your I make right sure out chance and buying check so you're that to a And the

where I they're or not but of a lot this of just done patients another get So rebate activity supply. take hey, were buy discount, kind that that seen to. year advantage of to want like, we've able I'll and

that delay activity. month that's a in kind of three So

shift question the back patients recession. that, on is of ends get the there tie we'll would that to up I of think that market because back, longer a think I that? those back, a answer I more term in -- get come kind because fundamental being, we'll

kind that their month bit purchases, get you'll get of if a trending recessionary probably to they stuff closer. people If three little money you more a watch environment,

we're not normal. to market We are that. done not kind the that of back the to anticipating Based we've research that. seeing We're move on expecting far, so

Operator

you. Thank

Sandler. O'Brien next Our with from Piper question comes Matthew

with proceed may your You question.

Matthew O'Brien

to on touching what comment was kind you $XX bit. patients saw you it. of in around a rate a gives specifically But such that? I consumers specifically said confidence, that up that this hey, I the that, unemployment the are been reconcile are hearing you world, gives out rate trading unemployment what us on which you've quarter a ease more place are you just the you that confidence people And SiHys was little from so do any million, of in can putting going so or think shortfall up? in up shortfall the the side the to lack high you in of the the trade the hoping you the are U.S., of Al, of can with With associated lead with burden the most that expensive the daily the high trade programs which such kind was

Al White

new up, that fits. is just clear that trade Yes. on to be because within And included

thing clearly fit. When the the that you most. doctor's biggest patient was don't the to shut buy come and have component that the and office, and of in able new down a that's the hurts get you new So lenses, you script

this a that is, focus you that's going patients, part forth, weaker to you're we economy, people of come two the That's way see mind, out to somebody $XX out fit talking that's kind so I to week in. going this up more, if about to where we coming or but a definitely of was my decent to hydrogel coming respect daily which million us much a and think who and see new silicones, of is focused. a going at With the all. the product in and new not clariti, traditional about is missed the of a trade are the in to this come of patients is up, with I better think greater older well accelerate monthly out with because change going right? be on you're one, a do on of out big doing Now economy If trading also or wearing new

is If or right, doctor leading want to a you. conscious, to lens. want still there only hydrogel market going you're product, silicone daily for as you're mass to product. budget still what a daily That's conscious market your real hydrogel prescribe cost That's going more the the silicone for product

we're of we remains of what. amount very, no recessionary if there MyDay So, very be I getting significant on where matter today, a are didn't Even it'll into more depend demand we're what feedback going there's went and of disappear, the direction based we selling if we even our from out strong go. say a on it will kind there to it's research. the based enough people, environment, premium, demand where very consumer from

Matthew O'Brien

then Okay, just that's And interesting was on MiSight. second question the and helpful.

upside, the there year. on saving you're year was maybe next removed is to upside next for that conservative, bit dollars little ramp that understandable you're going the some a spend to are this million, being up kind year, get I'm the the trying $XX the backing year, to of in still that year? of confident But year? that Or the with is, fiscal hopefully pushed what now some this you You're $XX million gets this of contribution time also revenue and spending next up and totally

Al White

we're MiSight. probably at by right interest say with respect that a a would kind the was greater it's seeing now. difference of I Yes, I it that probably a is conservative but and optometrists $XX still The beforehand, million I'd to look little little say conservative

that parents increased the were is it that, we’re of about with not home, number were have through the they this information, the Now, treat anticipating some had I a so and be going the standard what works. was really inside can training, I right, product able How at because the has wow, the than pre-COVID. fact data go care. was comfortable people forth, not my of it? am the to definitely that going to U.S. should lens? product, So clinical to we to myopic This training in outside the children higher and look get be and interest this with U.S. time be the of in definitely conversation How of people to the

if fit is coming you so it and Now, forth. and your open, kids in only are office can

got that oddly to arguably back be normal. you we think get to with MiSight So enough. better in might But shape I

do bit to year. a expenses still And we we amount only not and going that's on that, spend in world, in that some Now, around upon U.S., money depending the seeing QX, very we that's we're a we acceleration of what because this did marketing defer more. little interest might are hefty but spend

not MiSight. hold investing I'm in to on So back going

Operator

you. Thank

next Our with question Stephens. from comes Cooley Chris

You may proceed your with question.

Chris Cooley

size on just results? that have to that a and some I get the how follow-up of terms term? international, well first appreciate Matt’s little of see ramping impressive that’s where bit had you you some us maybe obviously could been of thoughts the seeing $XX publishing is data I new reiterated of a know near-term follow-up MiSight if on million better bit So there you're with MiSight. and views here but on just a Let to they quick the pretty opportunity? if next get just your how maybe the your Would recently, and question year, understanding help little spectacle the U.S. demand training, as PARAGARD. alternatives me in better pertain longer flavor you wanted as in

Al White

Yes, significant numbers absolutely, seeing -- so forth the yes, that in I and training, Chris. thanks certainly the U.S., the the interest Sure, in we're the mentioned.

to to how translate year. question And have some increases. doing much stores more how needle. reopen, some see just the about fairly U.S., talking work that'll decent a earlier organizations that Outside as and definitely of move because kids -- of plays itself with that it I'm it we'll them that fast increase. we're the were have this and number we We increases sized how lens. product. Now can we'll the more fitting out, confident It'll fittings, seeing into be that see who the in about And fitting. has been no question that And

I outside progression you the with U.S., would this because opportunities have right, to from continue high. excitement kind data. look as spectacle of going perspective, end with it's only Again, data think companies, that a just no you research, people muted, from this who going how industry. excited stage. the the There's shut. product some space, when I position their those our evaluating out or those are marketplace. matter a question companies entire guys. mean, in but U.S. of is the my amazing the of and know minimize the there. It's We're and have is MiSight think offices bit I and me, about those myopic, back stepped physician, getting day, into as data. put of to And are myopia potential treating I high. this talk right? about forth worse, still be they're kids treat thing. and is We're look demand certainly information. spectacles, of sales market. of to your at into get in it that, about to there, I'm I'm long not read say patients, been fantastic. large I've of little a an about product been you that there you're excited to interest terms interest -- a my So I at the to product, at that going seen and But it's I myopia I does have being actual not worse, with out so of obviously think the whether So about people a more the early to able others, get to ability in that that's the to they're that's ahead is how get well is of take I've it's and

Chris Cooley

if up. quickly PARAGARD I could on just as And follow then my Understood.

in emphasis at control this you. to a are premature be or alternatives or again, think no permanent control to any realized, I on time, shifting remaining help again, think, or, estrogen you when us any Thank market? pharmacies open, birth Just hormone broader greater seeing we of methodology maybe but the bias more shifts low non-hormonal about a birth but may options?

Al White

work that's I for think that, quarter. In I'd XX%. early new in they PARAGARD, with sorry, so not. what's little I'm were XX% pretty rebound down yes We're too that. April, happening based rebound what with -- we now, right year-over-year as nice June, down were mean, see you only or and option. probably COVID-XX, nice at today do I a a placements about And want that non-hormonal Yes. people PARAGARD were I plays only of might about or, We'll to survey look May, the In see June, the whether down mean, Obviously, on a start XX%. healthier would they happening world it be we're out. When would to currently June. I seeing we forth, to a to say, say solid. down our saw at and option. how love want a I look describe I

in happy or kind impressive that's have how don't that PARAGARD. That's We'll taking That's on that We'll of pretty obviously I'm seeing uptake does just direction. for within right certainly visibility, the numbers a market, mean, IUD steps that but I of see. I the certainly sure. I now. plays accelerate? see it true. with kind Does the continue seeing PARAGARD with we're So I'm for that hope sure. hormonal is out.

Operator

Thank you.

comes Wuensch Citibank. Joanne with next from Our question

with question. your proceed may You

Joanne Wuensch

A boring something maybe question and more interesting.

you headwind your side, the On seeing FX as are what this year? boring

Al White

move you’ve aggressively here pretty boy, recently. Well, seen rates

euro over headwind. is look Brian, not some, there the think I'm X.XX I went a at to going I’m sure

Brian Andrews

revenue be a mean, are for the down it's to -- I perspective, Yes. I from for mean, year. us going still revenues

given haven't We rates. obviously FX

QX, latter I $X.X mean giving the not for for it the was part million $X.XX guidance of EPS But on line about year. we're on and revenue worse the QX. So worse for

Joanne Wuensch

want in to then to And Okay. flat of quarter. revenue start. That's back fourth a good go I the the comments

And September the then What about there? get think a the optometrist to So to apart feet guys, flat is August, change at environment? how ophthalmologist trying of we you. distancing also, social what for in be you X build does I'm and getting the out combination is revenue? that do get Thank and October. would office to How

Al White

optometrist to decent some fiscal reopen in be we not situation to Yes, great offices normal. need where want 'XX, as as there, you're and operating question. successful Because to return to order in order in to get be We're to degree. in going we and be to a going

still like fingers other last continue August are your social to have snapping not we being that to in you going go direction, maybe was You right? those as ultimately you sticking We you move and and in then stages the in. that right? and a your kind mean, that year same make in to volume continue are you to bad, not then and need of You're early in, water need lot requirements I you in, bad, your not and it's to that that toes to out progress. going we're put your seeing distancing it's there. the It's of stepped it to cold in But a continue jump put almost pool, foot in toe the when because places. and of

to us because obviously going in we be to flat to need fits. to do back forward, we For new and want that QX come we need do what

for to volume research our be anything otherwise. is doors indicates I opening, The in are seeing going long lenses Ultimately, to there. think demand contact going think be there. in patients is going as not as I We're the to there. that go are

opening optometrists up tied to going stores. to So it's really be their

Operator

you. Thank

next with Our from question Block Stifel. comes Jon

your proceed question. may You with

Jon Block

Good afternoon. guys. Thanks, Great.

I in lower call quarter. the on now? remain is said in compressed it And new that prior Firstly I guess where or expected just future. to you foreseeable channel level where you inventory the it was this the for the it believe then at

stay And eventually down I've where So, if just follow it why would normal? sort the And new here that's up. of got it it the a recapture is and then not was? case,

Al White

the world. inventory, the bigger Having think come that the you around portion a more kind a of in is with back. that, respect going saw that I U.S. large majority That we of or Yes, here was back to market. have said do will probably focused because come distributor to

for carrying ultimately because had as to all going we'll it means not optometrist to anymore, of not Now direct we'll up their to And our buying in end patients. it inventory you carry facility. offices, are ship instance of in who part inventory that it individually group which then or want

structure different So of that it'll be a works. how little

inventory So directly It's inventory back. openings. selling will coming think I and that see back. store the stocked. retailers open, more lenses, that product I that more properly don't product, be buy do they they larger The more all just going the distributors the start think But could comes to we be fulfilling to tied

Jon Block

Okay. The And Is correct? a as fiscal the on that side. much that that a inventory clarification. does of numbers on rebuild assume just CVI, not XQ you out gave

Al White

That correct. is

Jon Block

closing And second lenses. checks hey, In practices as of heard consumers were worried about, securing the our just were it. got optometry question. some then Okay, the your about we

I'm went just those Some an guys and Contacts pure X-XXX going who said, another used provider. turn or from get lenses ahead online to to of ECP their to

in anything if does from guys remains, Thanks. pure from of online, away perspective lenses can about what just that that you goes mean margin that shift talk that place? if ECP remains a So a for to if you

Al White

you talking that about. March, to greater reporting and itself from online, for direct activity April just a did some online were you the to at to in right? Yes, a perspective. activity, saw look And definitely in shift us you And activity we that if out see neutralized neutralized patient of it it out because the of kind also shift saw we buying

at GrandVision buying day, websites. Specsavers it or Vision’s does our the back, Walmart.com a end of doesn't How big the how to interesting that mean, a that National be big shift I I stay see sold not through? where P&L. of goes it At the or it's goes, the actually that through to that that’s of that online it'll of it's don't a So people through difference difference of end if someone else’s, I right? make is activity Some at? know. day. or mean,

Operator

you. Thank

from Our with comes question next Petrone Anthony Jefferies.

question. You with proceed your may

Anthony Petrone

a here, the a amount of your Al on season to school fits PARAGARD. the Maybe on new back school but the of see could season of How and that time shape bit then September? one back the see PARAGARD, I and the playing channel months? in with flows that role competitors do the maybe I particular, you recovery new take necessarily of a as you on to do coming in clarification fair just CVI out? those some you open we V channel and get here, at that. should in that look Brian on fits, guess the mean your recovery the expect I it not guess And just And commented little counter amount in as it's OB/GYN hit, do fair a one you offices of how the inventory shape, maybe, shaping

Al White

started yes, inventory continuing the will Yes, back that time at placements frankly and start end PARAGARD, back. you the this entire of they to accelerating flow on and quickly day, have -- the because of

we is, way all will so the start tied in making guess channel. back would ship which still you it into making its back-in That's in I anything some and certainly see to liquidity didn't QX. That concerns As its was July, My our way fine. forth. it fiscal be saying, QX,

you'd to reopening. have to lot traffic because said, have a optometrist from when get a when be it necessarily fits, V that'll hey, depend largely not guys with at who others depend so I So, the offices back. have agree back there. coming look that you of and transparent that tendency it'll just in information guess perspective, new If offices I shape open comes a a on happens. have as that's I again, reporting optometrist We'll immediately

of going little to a are be bit and it'll so I happen, happening think stores traffic So do opening, slower It's comeback. is forth. a

assume timing of like right, it school is season, the in. of I going matter define see QX, would rush back one not just be going a what to I would unless of I off But the guess you that as mad kids how goes V. in school back. back that back you're a So we something rails, move around the into do Americas That's your kind coming think the kind to to softer have for September, kind that they that's go needing getting things realizing going optometrist, a little bit to keep to back think in is a softer October. in one and problem to and then going have the of timeframe, that's that a and school CooperVision’s vision September, August, of then Americas the numbers fiscal us. And I to reasons of QX

have terms I going of much fits. to a in new think active QX we're more fiscal

Operator

Thank you.

Our Pasquale question from Guggenheim. comes Chris next with

proceed with question. your You may

Chris Pasquale

that the Thanks. fallout point demand seems macro little AI, economic assumed that the to like demand, the we've rather. on I optometry And offices lot up, and around wanted just is back on the piggyback experienced supply discussion here. from a last it of side a impact side opening

to love maybe and things cut that know XXXX utilization it rebound? you're in market year I’d environment, thinking from or So and higher lessons more half any just for took got given growth where to we lens really how about a take could unemployment this

Al White

if when we've off spot I there. my there, right back up of I lens I -- down Chris, think up seen you're X% economic we mean, kind and XXXX, on were out go top the X%. to of you Yes, when XXXX, contact head the was industry struggles remember was

Brian Andrews

Yes.

Al White

and I growth and forth pretty that if the environment, So the on would are of and out other -- in so of all up market that, our because numbers we that occurs. the put numbers, there, we anticipate still overall underlying that recessionary more so also. a geographic decent of the factors reduce under But are a would expansion

Chris Pasquale

not are or at that's what But Okay. you point? guys seeing expecting this

Al White

it's progress of really Because forth. right at only that anything we improvement of When people much that like right, now. about tough. that store numbers now, talking what to tied are you thinking, I'm look little five else. a It's assuming than we're it right so in like more a something slow I'm and about talking terms is the next get of the unemployment openings kind months,

more hit in think us I 'XX. probably would the about question fiscal you're talking

Chris Pasquale

then you for the number And the just revenue quarter could Okay. overall? was what clarify PARAGARD

Brian Andrews

It's a $XX million.

here, see $XX million. just me Let

Chris Pasquale

Okay. Thanks.

Operator

Thank you.

with Oppenheimer. Steven Our Lichtman next question from comes

your may proceed You with question.

Steven Lichtman

up question on just Thanks. Chris' follow I unemployment. to wanted on

for shift that And if focus see we on, the would as elevated just unemployment be clariti do SiHy. put to to you extent within context an elevated finer you going I to back that way market go the risk But to attend overall don't in mentioned well. You to slower unemployment, are to see dailies a key on a any know a environment? daily want I point the to

Al White

your because price differential great. that really, isn't Not

moves monthly closer it cost which hygiene with makes or way product would daily at all it gets it, solutions because at The a looking like sense. monthly in. So To who have you're the to the is lens. that kind daily lens, best I by lot optometrists comfort angles look best towards still saying, that clariti have a patient the my perspective, of what's at product the most somebody a lens, a to daily, saying conscious also on. were you the is a a more When fit look you different perspective, from or any a

your to not cost the to it's plus you FRPs -- of have your compare yes, your solutions mind, dailies. any in keep So of costs

of that going not put over is to some cost and have products great in delta daily. optometrist that not to to see -- you're So you're not to want wanting going those

Steven Lichtman

CapEx the around PARAGARD? And is investments and comments Should manufacturing any MyDay assume same then COVID. this just this cut you DTC all? talked we levels and targeted given your call what during clariti of And that about on some from getting or you about year previously at impact about the

Al White

PARAGARD. Yes, some the DTC deferred We of that. on

great team in a towards help then we -- on non-hormonal that push on just that's So just whether of handling sales it right? such activity actually marketplace defer now. our so, insanely more were of hope here, evaluate right touched team kind so I Does forth that sort the is some sales to occurring QX, we're kind there able continuing that The is now. And right now shift to in product, was this like We good PARAGARD had of is some product direction? product earlier that that is is we of in that sense. advertising a going TV we'll that makes and it see.

kind So that. them, to I listen of from I on them take direction

adjust plays how we'll see out accordingly. we'll So then and that

why see year finishing big the CapEx a CapEx the why now already side That's that in. quarter of are in MyDay, next On forth. and Cooper time so quarter investments and have get of and do kind where us to these go because we side, or and in cycles, at start kind you'll this look capital one the a years because like XX CapEx we're that we run built even see lot -- we the over our you things you up out, the costs saw those back this decently we made, when going right where of the you're advance do and of scenario ordered a some environment kind that good number progress of some year and we've with we lines the situation months flow do especially of are in we're classic I shoots that think a point cash if at and declines and getting in pretty accelerated today, into we've position success, solidly. where pretty in our these of

It's going is we happen bit a then And little what of a happen little I probably will happen. it materially. just is going continue while. cash But think So of to to to matter CapEx going I increase will that tight were for think sooner a because when that, event than to thinking. be that's

Operator

Thank you.

Research. next with Willoughby comes Our question Steve from Cleveland

proceed may You your with question.

Steve Willoughby

Hi, evening. Two for good questions you.

First, maybe for Brian.

gross With quarter, was earlier. the a XX% about here to if quarter. -- I guess in your of you I talked bit little it more in the guess you’re surprised the relates it margins call call I for a bit a how than out little COGS accounts large out as the making on

like with I expected then the have what revenue quarter? -- on given third COVID understand of call So, maybe margins like quick declines And of revenue sort to you one I in sort But during not know follow could what guidance. going out forward, -- the decrementals look related up like then us you're looks what could giving And if help inventory. quarter? this the

Brian Andrews

to distancing just lines shut in address either to QX, really demand down proactively mean reasons, or for purposely so elaborate. protocols. Yes, I we social

these from higher So than we incurred usual costs actions.

larger little costs additional fallen costs. and saw given captured the mix with what P&L you incurred, we the track, and that XX% But QX move Obviously, adjustment. the or moves gross were get as see back that that's normal. and to things So, and a that production those the XX% has towards it's bit. expenses dropping that levels are your expect regional going mix margins you saw you period it'll see through when product that regions back to get -- those flushed And you're what continues have those needle we -- that as going you got if to numbers the to QX, and especially so expand forth, business the on recover I start would to

Steve Willoughby

know and if makes quarter out see worse would sense? quarter Would fourth calling we second expect just to than margins they planning that? don't Okay. I in third you're be gross the saw in to similar looks on we or what what that non-GAAP the

Brian Andrews

the you what us I Well, is impact April. an really towards from mean, for March, very had I COVID end think and of

don't Al’s similar the to middle the in of going similar. would still a -- impact back comment earlier to we're of without Asia-Pac want Europe QX. still that I show some And this certainly, But in things you'll in Whether now regional up lagging growth So see and how to had sort issue you're seeing something return QX? showing similar we're about that those us now of have we non-GAAP expect and to the some some the some sort on QX. comment going still to little how solidly of QX see you're improve. -- bit, recovering, in and Americas in I they adjustments that markets possibly that of in again going mix are and

Steve Willoughby

And levels quickly, channel know in do you related as What working then day, talk just of CVI over the where what inventory. follow-up a I years, to Bob, would in the you right it back relates inventory inventory both feel the real we the particularly been have about and down and now inventory. stands maybe and guess as trough compared more I to on as past? side, inventory Al,

Al White

when bit I kind who at it a always out right, looking good franchise it of when to I see retailers say. that, that okay. already have of that hard the like office visibility number, less the of so bit as be to have and and little got lot like right? a some that's a they're it then stores are that the then of was we corporate-owned, could forth. change. optometrist maybe kind even I all challenging, of right, trying makes seen not to are retailers, piece right, a are is to distributors one we have stores to forth. number, not there a could to be going out the right? kind our have been. it's of huge But was things was kind might didn't of And the it squishy. a up $XX more of when little And Yes, So It's million I that think it's as those But guys, and and little of especially as some of we've month comes April comes some so I I these retailers that mean And anticipating -- visibility interesting things that building be that the massive

shouldn't I be down But back far maybe kind up, an inventory didn't I have go they much perspective. to right? as quite a starting And build from gone would of thought they as as say they little come seem bit. So, to

over Steve. talked one always It's hard that a a about the We've years. struggle. it's So,

Operator

[Operator Instructions].

JPMorgan. Our from comes with question next Robbie Marcus

question. proceed may with your You

Robbie Marcus

as risk time trade benefit And about X P&L? people down? we for talked forward daily. out or the that up a tough reverse trade the to non-compliant move know from people to over potential the income two-week the in see Is might a always you we a there from time you've economic net about think compliant dollars a that maybe I how purchasing down, Al, spacing happen do any years, any X trading as down

Al White

see we that. Yes, don't really

a someone we that like see even be lens. to to person like rare two-week go monthly trade pretty moves it's daily, not So down. or see back stronger, a Once someone incredibly rare would probably it be that to a -- it'd

about and of of kind some I plays think be it how shifting you're see out, and more not into going next continue year right? see cost that bit. We a that you're conscious. would maybe decreases you little Because you, We'll that to They're to and this saying, you’re doctor move more happy for and think SiHy two-week and better want little people this their it's monthly or seeing lens daily is bit with their hey, product shift the switch. expensive. should their a a

Somebody's of conscious. think definitely like, stick I'll I'm I'm and it's go just more cost have. ahead more more where the happy recessionary And that's I likely at, possible. environment what with where people a would I in are

interesting it'll plays see how out. So to that be one

Robbie Marcus

talked said -- going some put you were I was launch you if to the in training, to? the above MiSight, that you know just at that $X well. the follow-up. numbers the tracking I in about On the a on or earlier maybe could referring is were just -- million had the what then in laid of the you numbers that Is year? Thanks. don't that put out Or you want virtual And you U.S. quick it. perspective. sales can

Al White

Yes.

was more talking about So I the training.

So We've still million people about $X being for $X talking getting sell certified, million through months. probably was to to million six people year. done first I ready this $X the the product. around

they parents to talking this, certainly that from so we who year there, up. exit out to through we've That's able that having QX off about going in and here forth. are some the who docs that, basing some discussions opening received and -- commentary back be as So the looking and to have improvement their certified for offices commentary now are improvement fitters and fit, are gone as I'm that

docs I the really was, process would more it referring what have than we're in have certified being and was So trainings, right, if to we done online. getting certified we more have docs we had of more wouldn't

Operator

showing any would you. remarks. back further over White, Thank for call like President further turn questions at time. not any I and to to And I'm this CEO, Al now the

Al White

thank Great, Thank a lot go We through. your had everyone. to you. you, appreciate I time today.

I with we the three high and look I on hit So everyone months. in think again catching points up forward to

So thank you.

Operator

Thank today's Thank you. participating. conference gentlemen, this and Ladies you call. for concludes

disconnect. now may You

The Cooper Companies, Inc. (COO) 5 Jun 202020 Q2 Earnings call transcript