Charles & Colvard (CTHR) 7 May 222022 Q3 Earnings call transcript

Good morning. 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. Expressions which identify forward-looking statements speak only as of the date of the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. risks forward-looking there be information these assurance be accurate. of the that will light and can uncertainties, no In prove to is at ir.charlesandcolvard.com/events. Accompanying slide Relations a is of available which section website today's Investor in company's supporting the the call deck, PowerPoint be remarks. company of will at conclusion a hosting The session Q&A the prepared you'd questions have please you to submit, e-mail ir@charlesandcolvard.com. Should like Please note, this event is being recorded. Officer. turn Don O'Connell, Chief Executive I'd to President over now the like conference to and Please go ahead.

morning, XXXX call. Good Welcome earnings third to fiscal quarter everyone. our conference

million increase highest $X.X growth history profitability. increase March X represents amount delivered of marketing revenue, ago the same the value an in capture we creating which Made, by alone, in and now aspiration position XXXX. efforts XXXX. our in X jewelry, X% XXXX, increase become this diamond reach the fiscal and strategic our and making XX% billion a making proposition quarters QX to ending sales to of grown further direct-to-consumer business. proud and capture are consecutive expanding wallet. and we effort this a feel in over Not unique highest year our of investments important our date our These lab period the $XX.X our This investments lab more concerted consecutive such projected digital share market be represents For million. a reasons and is from elevate organic to company's optimize functional in quarter marks of We've line as expand in XX is these the our $XX.X say engagement, fine revenue and quarters achieved That Mined nature, fiscal now the to We We're a grown momentum necessary opportunity by to brand milestone, QX by the efforts third business for we technology by from greater XX% period to top of traction leader projected the XXXX. areas ourselves of across a key by gaining are focused with decisions continue and are believe we to presence revenue to

and amid increase sales lab XXX% And Caydia sales blended continue grown remained charlesandcolvard.com to year fiscal diamond we and Forever rising for XX% strong year-to-date up rise we comp into a XXXX. QX in business, and of on and versus increase continue XX% One as quarter a commodity up realized prices revenue challenging our ago and fiscal XX% QX Despite XXX% our direct-to-consumer were market strong, XX% year-to-date. XX% and charlesandcolvard.com at global to for conditions, QX to the lean fiscal year-to-date fiscal year-to-date. Our XX% moissanite our remained our margin

robust million. Our in cash or flow $XXX,XXX per was QX from a $X.XX delivered We operations income net $XXX,XXX from $X.X diluted in income for or share. earnings operations

XX% in stock believe back up the presents X the buy an us XXXX. In $XX.X also to addition, strengthen over that $X next the to prior CTHR on up CTHR for by from continue Today, at years. QX quarter an said, trading intent cash over With from value repurchase hand QX ago below our year opportunity initiate of book our position the which stock announced increase year, we share end cash $XX.X all to price for we a we to fiscal million our XX% the to million, is million program.

to And conversion and fiscal order to website we continue inventory gains. traffic long-term X% continue $X,XXX, earlier, broadening consumer an our presenting that, all year In calculated continue last up for was QX we with investments total climb. in I our opportunity composition assortment business demand. fine online direct-to-consumer in As represents jewelry our line to XX% of make at our segment, value balance now support and average by mentioned which to for sales XXXX of

During fashion which Caydia a it's our available patented design. audience. believe anniversary of our diamonds element grown pleased we One and series, new bridal moissanite selection lab a or broad appeal year-to-date and Collection, broad represents with we launch both floret signature up or star truly XX% iconic XX% our for distinct we our were sales Signature QX, to and QX, Whether styling, our to forward Forever in

surge Business. Vogue, As global look such, Men's exposure diamonds demand Brides, in Daily to quoted with making forward for Health, the in lab we are grown we additional Wear to And CNN Forbes, featured recently recently in come. Women's and news,

increased Made, to increased believe the this market. worldwide strive puts strong leader logistic in we manage QX position by and global jewelry we we decreased to fine loose from requirements, our Not constraints, continued customers' jewels We our inventory competition, fiscal and become a in by our issues chain resources shipping position have to relative inventory jewelry, proactively our global the our supply in Mined XXXX. our X% all XX% a finished unrest, As us maintain and despite to meeting

opportunities any capture say So opportunity traditional our year fiscal XX% to an integral be brand That's consumer their our what revenue, us. the down quarter, control means does and that will sale. of that provide in foundation growth experience not this to This in to to an future up a mean? part to doesn't segment the year-to-date, ago though remained fuel directly, and position business strategic which for continue was remain for we important X% reach our

partner have our we're the the we now our distribution market, U.K. network. announced marketing has help our further order overall our and the thereby to in all sales partners brick-and-mortar recently in additional largest expand co-op our channels, trade at of of Europe emphasis moissanite As to pleased brand a through equity our of on Cooksongold, strategic in company superiority joined elevating valuable maintain support increased distribution to servicing We business. believe the the the strong placing in brand across generates presence. a industry matter jewelry in We're U.K. brand wholesale fact, which such

Additionally, consistently in-stock and to we're drop-ship marketplaces or the conversion with assortments us expanded be at and Helzberg work greater and to partners above rates compliance level diligently our Diamonds positioning our of excited with response maintain recent our service to marketfplace We thus XX% and our brick-and-mortar in our most programs demand about for in opportunities. Macy's. on in commitments drop-ship partners, customer

We decisions and investment to return ability remain resources, shared we're and drive the getting helps choices, capital to different support make the Although dynamics these ensure require our to important, along segments continuously which businesses data-driven investment distinctively that our maximizes fundamentally their allocations respective different revenue. services. are both of on that with

to spend QX adjust it these that exponentially was up adjust sales later & and Look levers numbers marketing as provide to in over the to insights we additional year choose these But CFO, for our greater we I'll our XX% grows Pete, build the turn detail. brand proportion go-forward Charles and consumer from segment. now, our call. awareness and some Clint? direct-to-consumer and in unwrap ago to QX, the Clint business evidencing was Colvard thresholds business the our on the as manage direction more shop I'll directly. While in customers the to quarter, us spend it to from as down shifts Traditional to

a I'll Today, and summary Don. ended quarter March for XX, key third X-month Thanks, XXXX. of fiscal financials provide period our

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

the will versus the March sales X-month for sales or versus with segment, the million XXXX, $XX.X Traditional total our the increased X-month million from for X-month ago sales the sales to million or net period X%. by March XXXX, for XXXX, ended and sales, $XX.X to the XX% million ago quarter ended sales the the for $X.X We decreased total consists net increased XX, of segment, XX% million segment drop-ship net while net the XX, totaled $XX.X an jewelry total, of of sales or XXXX, XX%, International year net website, net sales. the $X.X period. which $X.X or or for jewels ended totaled net of for jewelry million sales XX%. million of million quarter includes sales decreased X% the million net of sales March X% period of jewels XX% for XX% X-month XX% sales for Finished revenue. net outlets, for Finished of period March marketplaces, or XXXX, $X.X or period Channels $XX increase net net and sales. moissaniteoutlet.com, Online total total Loose an March to Channels $X.X XX% XXXX. sales to XX% million increase our decreased X-month XX, net our XX, XX% sales. decreased of retail totaled $X.X Loose sales XXXX period XX% the representing increased to increase charlesandcolvard.com, an wholesale increased net begin decrease XX% XX%. totaled to from for which and increased quarter. charlesandcolvard.com, $XX.X period customers, XX, ended ended ended quarter. Traditional the Net a And XX, for from in XX% up million pure-play sales X-month net Net of X% retail of quarter, the net sales Net In for for March transactional $XX.X QX period. other XX% year from Online million from

year Moving margin XX% on, to quarter. of we steady QX the delivered XXXX, a for gross ago

ended gross at period March XXXX, were XX%. X-month the margins XX, For

total support per quarter. for diluted operating to quarter. compared year increased $XXX,XXX to $X.X million $X growth or increased of diluted For expenses $X.XX ago Net expenses period. Sales compared our the million for QX XXXX, year share increased $X.XX the was in $X.X and per QX XXXX or with ago marketing million the X% to and initiatives, G&A XX% XX% in expenses share income

was the period. compared XXXX year million or $XX,XXX XXXX, $X.XX of income income or to $X.XX tax per is For to X-month compared for $X.X quarter. QX diluted net in per $XXX ended XX, ago ago the period net the income diluted expense million year in March share share $X.X Diluted

to compared income period. For $XXX,XXX $X,XXX XX, was for the expense X-month ended ago year the period March

our to XX, by of The an stock outstanding restricted issuance shares shares insiders earnings approximately in shares XX.X average in weighted to XX.X at the million the XXXX, calculation and were quarter in increase XX, XXXX. per weighted compared outstanding March Our by driven XXX,XXX the executives. increase of shares was shares diluted share options average of for March exercised approximately on million used

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

million $XX.X cash year with and position to by XX, total previous quarter, capital our of as we in liquidity ended quarter XXXX last Our $XX.X healthy million position end at $XXX,XXX. to our compared increasing fiscal million cash remained June compared the the $XX.X and

operations remains Our cash positive at flow for $X.X from the million quarter.

capital March at million working XX, XX, XXXX. to at to June Our $XX.X $XX.X increased XXXX, million compared

of to secured we liquidity, Chase In Bank. have with sources facility terms the of access JPMorgan million credit $X cash other our

$XX.X was As March that, with compared not of $XX.X drop-ship fiscal XXXX. as of XXXX to $XX totaled Finished and to to closing of and accessed in To requirements. our XXXX. inventory we March million compared million Inventory our as million over XX, I'll funds have jewels June today, forward growing of to the call levels was maintain as progress the back XX, XXXX. and we Don. inventory of million of With $XX.X June June $XX.X are summary, XXXX, XX, million through year soon. brick-and-mortar, XX, support as to pleased stock XXXX, direct-to-consumer to retail $XX.X credit million XX, jewelry look turn our compared business In out Loose facility.

creative months, to we've our horsepower voice. and capacity Internally, for amplify our past X the increasing been

with web for We directives on elevating and our opportunities focused major the live visual consumers have messaging brand. our every to touch direct-to-consumer to that presence enable been interact consumer remain at to firsthand. reskinning and experience streaming us the the point From overhauling

up, discerning we're like in addition, that state-of-the-art have minutes both Wrapping showcase X,XXX along quality studio, production to with a marketing foot to In few first is believe product. I'd that square signature showroom this track to QX. our strategy it a landscape, moving We vision our to excited be on to retail completed take report are while our essential forward. consumer and in

to is us a believe what that value that don't for. truly you Look we sell, also time you we articulating it people create. This we that dedicated makes in to for stand us proposition. value to we creating unique We've customer to believe believe. what they corporation, revisited buy We believe, a just as stand as what year, what on and and you we the what our and the what stand what we buy a focus and internally brand what are more to explore apart that and alike, stronger confident shareholders both

aware consciousness our to category And origin history being the Here's the to express and to to our in the operations. for in materials Through supply redefine made for almost facet core is on to environment other. very responsibility at gemstone constantly love, the & what of fact leaders celebrate and that offerings, Trust seek industry a chain, we Colvard that of we our love people, can as to decades. of one's to partner, ways discovered. Love, we for From is trust brand impact for in each the product our for the our corporation our speaks and better. love. be rooted which collective of our we seek X we a are customers the the our every our of Charles to of of values planet and oneself, the our is consciousness.

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from We that both about and company diamonds want today confident of conflict-free know workers and of social their the downstream. have the they’re fine and and reassured to impact at jewelry. become the origins be buying to found have treatment vocal very be environmental They consumers they're the of in their and gemstones

now values and in of They're that that provide this can mined a lab way a cannot. does purchase that grown the gemstones what to mean? we embracing jewelry So choice fine piece with their aligns simply diamond deliver

fine market. conscious XXX% brand that to metals the Not Mined a and consumer, jewelry Made, As for Mined materials gemstones, highest makes only and Not using delivering committed recycled quality offering Made, craftsmanship the exclusively we precious are the in

today. time For working and revolutionize is decades, be diligently shine. to now It are able we industry, unique proud been we have our to to the these to claims make

integrates our forward looking continue We bring commitments are these what to new for. that product and consumers reflects

at incredible Our time. it goal questions. right to over open jewelry the fine echoes the deliver right is to believe experience place, in an I'd design that with operator to lines With we incredible and the turn like what the the for right that, to at channel, back

Ursaner, [Operator Bumbershoot comes from question instructions] Holdings. Jason Our

continued the on Congrats progress.

in way which You mentioned growth mentioned with of price, contrast X share profit. of quarters at When consecutive not you now. all kind you the book value reflecting us back the below

of a going the probably not those more to more a worried being there growth, it which which X just stock? value spending both of next are environment? not going that What's profit? and as far? thinking X the as push sense growth pretty Is in kind you a between you for model quarter the growth investors and that the being you're asking materialize do it little versus structural quarters think of straddle line you too concerned people is of you're current X continuing consecutive to Or those report when the consumer kind on sense the kind about of Just directly, and aspects your of of are bit

So understand. try to let me

question. Let me the try to understand

$X.XX our is it around right as share. relates book to value a certainly, book So value,

at what definitely we're is We trading book. believe we've at that now the right getting we're deserve the that we the that believe below progress that we current achieved consecutive and quarters. X the last credit of not the over for kind rate, momentum So delivering

important. really that's So

after Secondary, there where business the is we're shift growth. definitely We're a going growth. for in looking the

something positioned the in fact and One be have we certainly belief And invest we want on quick the between differentiation a a Short your be in in our & invest investor, to you lab the the and meets moissanite and of to Also we're that growth that we Charles wanted that brand truly a company of certainly to matter long-term. a people trying to that value Colvard good proposition really perspective we the job today, a of to things the and your if where us. ethics of to really the then the and consumer the place are ESG to the So profitability. key maintain that ground there. in of growth with focus products appeal believe consumer that's presents company want we lot Forever unique diamonds, different a mindful and then that for gemstones of it companies that line, needs able that's provide in term, leaders. do we sourced fact at ethically opportunity bottom getting Caydia our a looking just responsible results mindful we're jewelry in is Certainly, to as

So accomplishments. us up million, cash an what ourselves helped which in we're a to build the take us advantage doing is now to be of to last investment able company and now what's make as X the our profitability for presents us and that's flow price $XX.X for low opportunity important, an in share cash the quarters very to right to in

still tremendous debt. relates $XX.X value to position a cash of investor, it there no the certainly, is As with million

our at point. this credit We line of haven't exercised

with capital, value our goal the our -- steady. been grow But the business, is our say responsible drive to mistake, been no shareholder and exponentially. fiscally mission responsible, business We've our just with slow our make and I we've business. money and a So with wouldn't growing

X to go we've made that XXXX significant from at quarters, right look beats coming revenue, it's revenue million the this $XX.X reported back strides if and revenue of beats the out revenue. the quarter, gate. And If XXXX XXXX you you now, beats

without So where that's we're year-end. currently and QX reporting our our at

that. pleased we're with So

all that's that know So we've question, got across the profitable I your think the the across much appealing, at the channels and but pretty time if -- growth, we quarters. don't and same -- being answers across

perspective, you've to what the and done not of you're exactly my do going that. kind you're stock is From reflecting saying

your Because sense investors, you're are guess, people right when of do? you're is you believing, my perspective, from you what now? doing those of both So speak of which are for I to to going saying not what

So it's don't not doing or It's who opinion. out are job my believe It's question well. a of really that's good in whether an a they a whether that what seeing and there about out. believe and micro-cap question incredible of enough people whether getting the are the word they we're a there's understanding we're in question company performing fact we just incredibly

For we're may And not my that me, hear by in I think the forest, not it may exact in tree see outperforming used, there's companies, or of I it's a standards basically, growing lot most analogy all people micro-cap ways. if of a it.

of job not strong an you it So space word. investment we kind as be in currently liquidity, elevating continuously to liquidity of do But able and would goal need as are a need CTHR out. a our if from positioning. look better in to to shout to to the the our push investors standpoint be. to We be able we is at the But to that is like kind certainly,

need every moving and -- mainly the I our important day. time time it's kind we internal out driving believe, the own us growth single it's But expectations that's But the word just really better. do there focused get business, bit I say exceeding mean really So forward, really to we've to the we board. little driving across a as been shine. on of for

next question Paul Johnson. is Our from

shareholder Two of questions. Actually, one, the just in terms value question.

do. management know I they you a of stock lot own like feels So and

or Director, taken if But the you a meaningful anymore. in last Ollin And X. who's buying correctly, over been Sykes, to want don't so year out it's be only I maybe way been recall

at so about you any perhaps make participating these And crazy comment other levels? can insiders

not able has to their Everybody be every the Sure. director or In has own every has means hand strategy into investment cash-on invest. the full and or right, transparency, literally make everybody to individual to investments. or their go purchase, market own able capital be to and

in And as I CFO certainly, vote Ollin Clint his have board. well And recently, certainly, If have recently Pete, a I Sykes. significant across very it's insiders his of take But speak position, the ago. with we're on not albeit as CEO took exercising options we pleased our the basically, directors the confidence you and myself the quarters look their his on just been my of can't Ollin strength as from quite over Sykes, X exercising from moment shift position. behalf.

just Secondly, wanted talk margins? late, just I maybe what but to and bit gross the margins, you the you're chain call little can of seeing forward? issue you joined discussed I terms a already going supply about so this, whole know in

great Yes, question.

from bit margin last and related stabilized it's last Certainly, here on and forth. what stabilize. back that the for on precious metals. saying a certainly that's dropped that been We're myself comped at X% little our are up based year-to-date get year. and and did Certainly, trend estimate diamond shot around about quarter, commodities now So a and year. teetering bit We on little believe lab recently. stabilization a actually increased bit smaller insiders margin I've And commodity going some little to the pricing we the goods now up some down seeing our is there. We creep see metals we'll X,XXX grown based bit this blended XX% We that were Certain we XX% little prices at year's the to last year. margin. this actually a

to forward, We'll moving maintain able be that. position. believe stabilize in to we and going a be So good we're

shipping you decision I to else, an we'll everyone also and costs either risen. like Just the across tell make do that increases at that executive will look expenses board. we'll closely, pricing and

is to shipping an eye that's of thing ourselves One free board. factor another on. on pride keep the there we across So kind

making decisions. No that maintain the analyzing we're not So and adjustments an we will if responsible blended And make indications accordingly. kind be there margin. our indicator is able of that to will all mindful there, we

give announcement U.K. I us your saw plan And an other and the announcement the update Can was centers can I us regarding you you there the to countries? on open expansions? on possible an update various distribution in China, believe. give in any previous

Yes.

let So me those address just X.

having still Asia So some region, the the obviously, and Pac difficulties with is COVID pandemic there.

So Cooksongold the for regard. that the direction it's make the of uncertainty we're going kind wait to we're and right where basically now, Asia other that United can to We're primary Cooksongold But in some -- and look between book we been go about resolve that's that international of region that's incrementally, we market and between to I U.K. pull question. to of the we've to and with in for we and hope kind I excited in mere that about not able to for of on here, market think we're taken itself And pushing and States. the that Since a own we we excited any we're done kind I've over, the wouldn't say can be huge There's go European we not U.K. the has side. just wanted in Europe answers what for to so the the decisions Pac things. expansion We'll the there. the your international focus. before the fact the type us capitalize but going think global

PZDA. Next question Paul comes from Zimnisky,

and of some question, color provide on hoping is was could your live second jewelry then percentage strategy? streaming product What I assortment design more proprietary generic? showroom you the versus And the

Yes, thanks.

give of we business you considerably. out on diamond and the we've mix don't with can growing the the very expanded that grown assortments and we very numbers of is what nicely, our pleased of product that, lab the we're What aspect So I kind do. tell

essentially charlesandcolvard.com, just even kind the volume and at we and believe we you starts on that in that at in as choice go look the great a look you more increase to that's consumer Made, styling things all becoming that catalog we to that we've increase If acceptability awareness believe and can going offer increase, a our look there of us the as and Not created for is were to and which that destination position mainstream. Mined for of

really, good really thing that's think we for us. a So

numbers. So product know But this category point, a we just you're it's for us. looking I at specific for --

So at we growing And don't moissanite you by growth grown the But day. disclose but and XX%. for that, still pretty us business our grown you incrementally customer it by the business, if has by growing at is consumer, it's the the the look in much lab diamond look XXX%.

to grown to ago, there. in fashion the lot do -- So category. engagement little the year had out look and kind now us is we anniversary started growth a assortment, into from a a more And of over to and that fashion we basically a basic to and we've now

between that's showroom, of fact same As give here occupancy related we'll opened our of and shortly. anticipate I'm final sometime signature it specific relates studio. to to we store inspections because the digital there, is constraints certificate that of get timing that for just our the through our going first thing not

just us social give whether the me we and TikTok, to own studio a set believe We that through our capacity Let it's self-sufficient. for there tremendous in It apart whether little through amount Instagram, from it's what digital whether the it currently & will create a will That which will industry. content, is produce direct Colvard. works push Facebook. YouTube this response video. ability cost we that cliche, to talk and anyone where more get video content direct content you will content, a gravitating everywhere the that's to limitations us experience. self-serving, future. In else content, capability looks us cable. is through hub running studio That bit allow in potential is. believe opportunity about shopping shoppable consumer digital Whether We of then be it's It digital consumer that studio are it's video consumer, own it content, our prohibited to can We studio, to this shortly and could I the that campaigns, to be video DIRECTV, that Charles as any could content be interactive through be aspects us give to here And forward. It has have consumer means. eventually response and intuitive an It through be and know more to believe a and be for interact. shopping regular an wants completion phase through bringing which and the that up could today's capability and is TV. nearing like.

there that Tiffany and between use don't with represents now. that’s that very business differentiation Collection, of And is our So the important it other that is XCs is but well and with year-to-date. that part major think out but red XX% swath to that I brands Signature tells growing is and Collection everything, significant Charles But our percentage advantage, that's resonating Charles Colvard broad the believe too a because we're sales what our on to of gave you, give the & is story Colvard us the growing. it thread -- I a product, that understand & I between which category brands. and up it and use, also consumers. term, as and very that's our But percentage and our We the that Signature that it's to are hate but I'll thread also our that. going Romanesque the a proprietary elements we we it's because about. like designs And XX% back product hopefully, pretty the

Capital. Matt Koranda, comes Our next ROTH from question

on Zabran break it the Michael any you web for down online performance conversion as and pertains site or to quarter, Koranda. trends Amazon It's help in us just specifically Matt Could comment own seeing? versus traffic you're on

Yes, sure.

the we segments. do is our break So bottom online line out

talking -- CDC about business charlesandcolvard.com itself? our Our are you

specifically performance owned just seeing? Colvard conversion Amazon the just out It you're of traffic, trends Charles at kind breaking and and & any versus performance Yes. on side web

Yes.

XX% charlesandcolvard.com overall were fiscal our So up year-to-date.

-- look you gift giving. really we keeps some keeps and So definitely I tell what gift And on there. revenue you kind business, just of online on at you our the year's that of XX% overall, is our And $XX.X we're online that. at is where we now business at growing that of seeing year. if look can that about just full XX% look million today and gift improvement the the last our real reported at call that shy overall at

be very, it's breakups about drop the remains between -- marketplace very don't the to basically, remains publish as the Amazons ships. all as that strong. We and But far charlesandcolvard.com. So

the they're we how in speak AOVs maybe And lab of the by diamonds and quarter current up that grown impacted ended just next, have? mix to where

Yes.

the back going So in the now. business as business, asking you're online to charlesandcolvard.com think online our also, of I represents revenue XX% as far if right

So specific. just that to give you

that we $X,XXX. our far it's as as So reported AOV,

fashion anniversary category, maintaining are So our band in we're a maintain very a strong excited about items, of the helps AOV. products there though blend ticket are on excited the that AOV. even also nice which the the of higher fact in We're us LGD, our lot

So our the business, of center the it's the what impact stones we engagements low AOVs -- return bit. large some of overall. little have their which on the with I don't that lot competitors going of selling are other a business we the skews But of return aspect AOVs have and not know very beauty a rates

the pleased So of $X,XXX AOV with at our strength now. we're right very

And last from one me.

provide and these and and Just an just update Maybe the healthy marketing. performed metrics quarter, the ROAs channels and best? could on sales new if third have which trended out metrics speak we specifically on how campaigns. quarter-to-date to in quarter Last called have you

Sure.

addressed it's when So the we charlesandcolvard.com. for ROAs,

We're single average very, about very the you every got And it's levers. direction year-to-date looking that now as $XXX. that at XXX. levers I online tell We're quarter, ad the right close will believe pulling business being spend the paying in day. XX% right the about now more, business our to shifts is & we close data these we've attention. representing we're Colvard. the for the Certainly, XX% So and Charles

that's So reduction. a basically

bit ROAs, per of increasing drive And by little spend it better been getting conversion our $XXX-plus to customer. average we've and increasing basically, ad we've So ability the a our reduced meaningful. kind traffic

new That's customer. for a

Paul follow-up investor. Next, we Johnson, private from question a have

Is off? figures, of in is SG&A terms tailing to continue XX%, give be going was expenses the the that to see an something up were on we to then Helzberg good, the like you XX%. X-month up but sales? Can to going between are that's of so forward, disparity Or that expenses which kind growth Macy's the relative and And revenues businesses? update going and at looking

Yes.

quarter to last down strategic spend actually, make from us to is investments. So XX% look but our

little talk businesses Let's about the first. a bit

us. we and Helzberg well, to our a could excited Helzberg and online. customer continuing gets in-store, very sides remains the us and stronger, And very, in-store, quite we've on remains business look looked online for continuously expanded relationship. as both about movement house the business to Macy's is as It strategic to business, that. business the great assortments grow. Macy's we're that that as Helzberg. I gem of of really their us. So it. support there performing account, between as a partner you with of online. We announced an gem here, a well continues the lab and stronger to And tell does forward strong continuously Macy's a for grown grow and really so

very than they the pandemic, remains not stronger the we're still So all pandemic. several through have did of albeit the even reduce was they in strength the that the now Helzberg but strong, before if very, is doors, it doors doors

strong. our and we're So there remains excited online still business really incredibly

real real, good. So that's

the in of that? terms forward, expenses But can talk going just you about

Yes.

So to us. out build to we'll to continue really right? that's resources, So important specifically spend

business, between revenue spend our growth We just need partners than the to we a with we campaigns. certainly to traditional We I increasing incremental to and in less order basically the that we I get at And business, $XX As grow when million. took even to continue were now we're larger greater over the need need strategically into and partners programs. trade. support spoke able support co-op to be social brick-and-mortar about that to paid

be So were to I up X basically months increase try we'll spend. looking year-to-date mindful. you're fiscal a SG&A the I on get to on We'll at. what to months. X trailing caught mean, the continue and you're not continue of in

same, But year, last the as as our in tremendous this was the growth spending which first year over pull year-to-date, but and we're we're CEO, incrementally side. I seeing You are driving we improvement there. took the revenue

out need grow this the to between more ROAs. for it. pull starts business completely the range. what million, online then $XXX now, our we on an catalyst as to $XXX that an we'll So the have itself. thresholds the during top to in and script that associated in and business of the growth that paid traditional to costs be the representing going right? currently we're we to gets in competitive to design, just actually marketing that it's segment and doing and call find and million out and different It's us but business mindful pushing part business and tried business search that's the of different levers why related support talent I to exponentially the is, then terms is spend still today. place again, a million, keeps overall business. resources and integral and say let's the for the We'll a there. maintains phrases, and in $XXX of XX%, become And line Our performance-based make as incredible we to with And bringing thresholds and profitable, as true right collateral the need, that's the right continue where growth business But and landscape remains grows, direct-to-consumer. But strong this continue And

even Costco? something And know, of any like terms accounts, don't the with, there wholesale in I or is possibility a a Dillard's

Yes.

great is Costco a So name.

think or do financial we're are where opportunities, Certainly, strongest. with supply that Helzberg, a capability Costco of opportunities. constantly They're the different has -like very to with business looking people in model we're with we’re And find the really certain the with financial at short, solvent they we looking they or of financial are condition presents the do what in and think long-term. for good rare yes, So X right business of pieces. we to is kind now. Macy’s Helzberg those components

but to I'd look to a that term us it's to connect tentacles of the to for little inventory. additional -- intents our So vault all for use can main like and bit purposes, different, look

inventory, and many see. to of we So better are great a point. that I the more as it up can those growth we'll tentacles appreciate it's you of we bringing vault the connect our

tentacles. partners bring to to aggressive on to online the be looked able of it be us in on So more bringing those or connect to

our for please concludes to ahead. go O'Connell Mr. to turn I'd closing the This now Don question-and-answer over like session. remarks, back conference

and call. to & like behalf continued CTHR interest and entire tuned On in the Colvard's Stay of for to team, time thank we're Charles forward I'd & excited. Colvard forward, your year-end path and today you growth and Charles our your fiscal looking for

So thanks.

Thank concluded. attending for you now is presentation. today's call Our

disconnect. now may You