Q1 2023 Charles & Colvard Ltd Earnings Call
[music].
Good day, and welcome to the Charles and Colfax first quarter fiscal 2023 results conference call and.
All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Starkey followed thank you.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone to withdraw your question. Please press Star then two.
This earnings call may contain forward looking statements as defined in section 27 a.
Of the Securities Act of 1933 as amended.
Any 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.
Subject to a number of risks and uncertainties some of which cannot be predicted or quantified now beyond our control.
Future developments and actual results could differ materially from those set forth and contemplated by our underlying forward looking statements.
In light of these risks uncertainties, there can be no assurance that the forward looking information will prove to be accurate.
Accompanying today's call is a supporting Powerpoint slide deck, which is available in the Investor Relations section of the company's website at IR Dot trials in cobalt Dotcom Province Flash events.
The company will be hosting a Q&A session at the conclusion of prepared remarks should you have questions you'd like to submit please E mail IR at trials and cobalt dotcom.
Please note. This event is being recorded I would now like to turn the conference over to Donald Cano, President and Chief Executive Officer. Please go ahead.
Good afternoon, everyone today, we're going to report Charles and Cold barge first quarter fiscal 2023 results, we delivered $7 $4 million in revenue in Q1, while down 28%.
To the year ago quarter in part due to logistics and supply chain issues caused by Hurricane Matthew which had an adverse effect on our quarterly results. This quarter still represented the fourth highest comparable trailing 12 months revenue of over $40 million.
Additionally, as COVID-19 concerns and travel restrictions eased early in the quarter. We believe many consumers spent their discretionary income on experiences and vacations, rather than luxury consumer goods like fine jewelry purchases.
Softness in demand was experienced across the fine jewelry industry, resulting in our distribution partners, reducing their forecast and overall inventory positions, thus, causing a drop in loose gemstone sales and revenue and our traditional segment.
Gone rest as we strive to reduce our dependency on others.
We continue to make strategic investments in our direct to consumer initiatives, which we believe will further strengthen our mode and overall position in the market.
Despite the increasing economic uncertainty in the market throughout the quarter revenue on our own property Charles in Khobar Dot Com only saw flight, 2% decrease year over year due in large part to the effects of hurricane in.
This represents the second highest revenue for the comparable quarter in company history.
Revenue on a more tonight outlet Dot com website was up 179% year over year as consumers sought opportunistic buys.
We feel confident that our brand positioning and expanded product categories will continue to resonate with more consumers and drive greater market share in the quarters to come.
Although lab grown diamond prices have experienced some downward pressure and increased competition Arcadia lab grown diamond revenues on Charles Colbert Dotcom continued decline.
At an increase of 85% to the year ago quarter, as we expanded our collections in assortments to better meet consumers demand and increased our efforts to become more vertical.
For everyone Moisten, I revenues and Charles in Culver Dotcom were down 12% the last year.
We anticipate our mortgage night sales to equalize due to the value proposition and represents and the growing broader lab grown movement as we continue to expand our larger carat weight brought all assortments.
Our gross margin for Q1 remains strong at 45% as we continue to take necessary steps to reduce product costs, even with rising shipping costs and inflationary pressures.
At this time I'd.
I'd like to turn the call over to Clinton Pete are CFO for an overview of our queue one financials.
I'll return to provide updates on her key initiatives Clinton.
Thanks, Don today I'll provide a summary key financials for the first quarter ended September 30th 2022 additional details can be found in our earnings press release that we issued this afternoon and our foreign 10-Q, which we expect to bottom all.
Please note that all percentage comparison side to the year ago quarter unless specified otherwise.
We'll start with Q1 2023 revenue.
In total net sales for Q1, 2023 totaled seven $4 million versus $10.3 million or a decrease of 28%.
Net sales for online channel segment, which includes chosen cohort dot com.
And that outlet dot com marketplaces drop ship retail another copay outlets.
Four $9 million for the quarter or decrease of 10%.
Now representing 66% of total net sales.
Net sales will not transactional web site, Charles Kauvar Dot com decreased by 2%.
Relatively flat to the year ago period, despite the current overall global economic conditions.
Net sales for our traditional segment, which consists of wholesale and brick emotive customers totaled $2.5 million for the quarter or a decrease of 49% representing 34% of total net sales.
And is joined net sales decreased 3% for the quarter.
It's June let sales decreased 60% for the quarter.
In part to a shift in the finished jewelry efforts and direct to consumer strategies, along with both domestic and internationally distributors, reducing their forecast an overload inventory.
Overall international net sales decreased 39% as our distribution partners faced additional COVID-19 restrictions enclosures, while cross border trade sales on our transactional web site.
Dot Com <unk>.
Main relatively flat to the year ago quarter.
Moving on we delivered a strong gross margin of 45% versus 51% in the year ago quarter, delivering $3.3 million in gross profit for.
Is five $3 million in a year ago quarter.
Our gross margin in the current quarter was negatively impacted.
1 million.
In support of our goals and initiatives and G&A expenses decreased 11% to $1.4 million for the quarter.
We reported a net loss for Q1 2023 $890000.
<unk> loss per diluted share.
With a net income of $827000 or three.
<unk> earnings particulate sharing a yoga period.
Put it in our net loss for Q1 2023 is an income tax benefit of $303000.
An income tax expanse of $123000 in a yoga period.
A weighted average diluted shares outstanding using the calculation of diluted loss per share for the quarter or approximately 30.4 million shares at September 30th 2022.
Compared to 31.1 million shares at September 30th 2021.
As an update to our $5 million stock repurchase program, we announced in the prior fiscal year as I.
September 30th 2022.
An aggregate of approximately 288000 shares of the company is common stock can be purchased under the program.
That are held and tried any stock for an aggregate purchase price of approximately $489000.
At an average person purchase price per share of $1.26.
Now, let's move on to a snapshot of a balance sheet.
Quiddity and capital position remains strong as we ended the quarter with $16.6 million to total cash compared to $21.2 million.
Physical year ended June 30th 2022.
In addition, we continue to carry.
No that.
A cash flow used in operations with $3.7 million for the quarter compared to $2.1 million in a year ago a quarter.
This increase in the quarter.
Build in inventory dishes support the upcoming holiday season.
Investments in our lab Goin' Diamond initiatives.
Repurchases overstock and other significant growth initiatives.
Are working capital at September 30th 2022 decrease in June .
June 30th 2022 by $4.2 million to $24.9 million.
In terms of other sources of liquidity, we have access to $5 million Castro credit facility with J P. Morgan Chase Bank.
Which we renewed on July 29th 2022 for one year.
As of September 30th 2022, and two today, we have not accessed funds through our credit facility agreement.
Inventory as of September 30th 2022 totaled $36 $6 million compared to $33.5 million as of June 30th 2022.
Those jewels inventory was $16.6 million compared to $16.2 million.
32022.
Finished jewelry inventory was $19.9 million compared to $17.2 million as of June 30th 2022.
<unk> stock levels to support the upcoming holiday season.
<unk> groaned diamond initiatives.
In summary.
Confident in our financial strength and our continued efforts to increase shareholder value.
With that I'll turn the call back over to dawn.
Thanks.
For years, Charles and Colbert has been synonymous with more Tonight gemstones today, our goal is to make Charles and call a are synonymous with meat not mind fine jewelry and gemstones for the conscious consumer.
We believe given the potential for the lab grown jewelry market approach or exceed 8 billion in 2022 that this represents one of the hottest growing categories into jewelry space.
We feel well positioned to capture a greater share of this addressable market.
Would that being said I'll provide an update on recent highlights and our fiscal 2023 strategic initiatives.
We've strengthened the brand positioning by expanding our may not mind marketing campaign, and our commitment to produce ethical and conscious buying jewelry for today's consumers I'm pleased to report that we maintain 99 per cent precious metals utilization for fiscal year 2022, as we strive to attain 100 per cent.
Our goal is to own domain, not mind jewelry and gemstone category.
To further delineate ourselves from our competitors to own that moat.
We have now begun to strategic redesign of our website and educational content to support and strengthen this direction as we are finding that consumers care more today about the origins of their fine jewelry.
Our marketing strategy to increase awareness includes revamping our overall go to market visual initiatives and.
Capitalizing on our investments and our digital photography and video content.
Production studio.
We believe these efforts are bearing fruit as we were featured 20 press publications within the quarter alone.
Including Brides J C K, the Robb report Yahoo, Forbes and National Jeweler.
We've enhanced and expanded our product assortment with new meaningful lab grown diamond collections that we believe will bring us into fashion and editorial categories and position us as a leader in the lab grown fine jewelry space.
Recently, we launched our bold new couture collection, our signature collect your men's bands and our latest conscious color fine jewelry collection.
Increase pressing awareness.
Additionally, based on consumer feedback, we've increased appointment times for our virtual bridal consultations to educate the consumers in real time.
<unk> both are forever, one more Tonight, and Arcadia lab grown Diamond Assortments.
As a result, our consultation bookings have increased.
Our data tells us that customers are much more likely to purchase from us after a one on one consultation.
Further, allowing consumers to experience or jewelry firsthand and broaden our footprint. We've opened our first retail signature showroom at our headquarters located in the <unk> region.
We received significant local press coverage and <unk> relationship with North Carolina based Influencers during our exclusive press preview event prior to opening on October 24th.
We believe it is important to remain focused on these key strategic initiatives for this fiscal year to effectively whether the current economic climate.
US in a position to thrive and grow our product categories and overall total addressable market.
We remain hard focused on diversification for us diversification looks like innovative product launches that go beyond bridal.
All new ways to experience, Charles and Colbert like brick and mortar showrooms customer press events industry outreach and live stream shopping always to build depth into the brand broaden our audience and drive new consumers.
This this on fine tuning are made not mind positioning is foundational to the strategy.
Look to us to lean into those core messaging and consumer education to further delineate us as a leading brand in the lab grown movement.
With that I'd like to turn it over to the operator to open the lines for questions for clubs.
He will now begin the question and answer session.
Can I ask a question.
Than mine.
Okay.
Speaker phone please pick up your handset.
Can I tell you <unk>.
Thank you.
Please limit yourself to one question.
Question May be answered your question.
<unk> County.
Okay.
Just give me one moment. Please the first question comes from Mike Miller.
Okay.
How ya doing guys.
Shareholder for quite a while now literally.
The time when they were rolling out the retail stores.
And then the next CEO came in and we were doing the home parties.
We had the young Lady who was.
The marketing or Internet person, which I thought was doing a good job and not sure what happened to her and it was very quiet as you went out the door.
But I have to ask you this tax at a dollar now we're talking 15 years later.
And it doesn't seem like we're going in the best direction.
At what point do we go to the board and we say hey, we might be better off selling the company and go and being a part of a bigger organization because we've been doing this for 10 15 years.
Nothing's going right I mean.
We're stuck in the mud here Something's got to change.
Hey, Mike.
I appreciate the comments, let's talk a little bit about history.
So in the past eight quarters the last two years we've exceeded.
All revenue targets as well as the highest revenue in the history of the company. So let's just talk about that we've also exceeded.
Profitability over the course of those eight quarters as well.
Everybody in life has a decision to make of who they want to.
Best in that they believe in where they're going in the direction. They are Goin' certainly from my perspective or book value is at $1.92 right. Now so we're trading way below book value. So we're undervalue between the cash that we've been able to build up over the last two years. So the prior organization or my predecessor, well.
They have all done a great job and kind of building the foundation for where we are today, we've completely shifted the business into more of a direct to consumer basis. If you look at US right. Now we are a direct to consumer company were also a company that is not limited to a single product. We are a company that has multiple products. We offer the choice that the consumer we just launched.
New product, which is color, which is also in the <unk>.
Hottest moving category.
May not mind category, which which is R.
Kind of our campaign moving forward, we believe that we are better positioned from a capital standpoint than we ever have we believe from an inventory perspective, we are active inventory. So I'm going to strongly disagree with kind of your interpretation of where we were where we are today, obviously, a little biases the currency so much like.
User Berkshire Hathaway's rich lying group.
The world shifts and changes.
And our ability to adapt and shift and change is really critical to kind of the future state of who we are and where we're going to be so.
My perspective, if you look at your entire portfolio not just limited to see THR I'm sure you're seeing similar types effect across the board that are beyond our control.
Interest rates are climbing cost of living.
Has changed and shifted between the fed basically just change another three quarter basis points yesterday, we are in a commodity business, we ordered a discretionary.
Type universe. So those consumers may shift to go in another direction. So we still feel that there is an incredible opportunity for us. If we stayed the course of where we were which was a wholesale business.
If you just look at our numbers right now the wholesale business definitely faith strong headwinds and really the most exciting thing that we have is our direct to consumer approach, which is now 66% of the business.
I understand your position, we certainly know our position and basically like we all can make those decisions based on those so again.
We're trading below book.
Far below Buck right now so we.
We did initiate a stock repurchase program of $5 million repurchase program of which we purchased about a half a million shares for half a million dollars worth of shares. So we believe in what we are doing we believe that we're the best value for our money. So we're putting our money where the mouth is and we're pretty.
Pleased with kind of the direction, we're going to we're we're at unfortunately, we do have some headwinds with the economy and our ability to adjust and our ability to bring on new products to appeal to a wider and broader audience is really key so I'd be more than happy to have.
A dialogue with you you to set up an appointment with Clint Piedmont CFO and we can go through all the business.
From years past two today and we can agree to disagree and we could just talk fundamentals and I'm very open to that.
Alright.
Earnings per share is what's gonna move this stock I do agree with there is some good things going on I guess the big question is.
Are we better off maybe being part of a bigger organization, not saying that you're not doing a good job given the circumstances.
Big question and the board needs to have a discussion.
Are we going to be better off over the next half a dozen dozen years and tinnery continuing down the path that we are.
Are we better off for the shareholders.
Maybe getting bought out that is significantly higher price currently hopefully.
So that's that's my my question I think really needs to be addressed and that's maybe.
Yeah, Yeah yeah.
So, let's talk about that a little bit so everybody in life looks for the maximum value right. So certainly at these values.
I mean, we're obviously.
We want to command the best possible price in life should that even be a consideration so.
As a board and as a director and as the CEO . We're looking at every opportunity for the business.
<unk> to grow the business opportunity to kind of vet whatever comes across our plate. So.
Certainly always a consideration right now.
Probably wouldn't be the best time or the price for that but again, we can.
We can have that dialogue or we could talk forward with it so.
Set up a call with Clinton that'd be more than happy to kind of go back.
Back and forth with you on that.
Next question comes from Peter Johnson.
Yes, hi, there.
I do embrace.
The strategy the guys have undertaken in terms of broadening.
The scope of products in the market to access.
And also <unk>.
Increased direct to consumer.
I'm, having a hard time with is why we're building inventory if business is this rough out here I mean, obviously known as a crystal ball, but.
It looks like inventory at $25 million adds up literally twenty-five percent over the same quarter a year ago. When it was 19.6 of I've done the match right.
Just not sure there's a lot of <unk>.
Articles out there about companies.
Not having enough inventory, perhaps during the pandemic going too far the other way.
I sure Hope, we haven't done that I'm just not sure. If you guys were seeing over the last three six months.
General softening why would we be building inventory.
Even for that matter buying back stock I mean, if you know that the.
That we're going to have a rough period here.
No question that the current price of the stock is ridiculously low and the price you pay $1.26 also is low but why.
I'm not sure I understand the strategies behind those too thanks.
Yeah. So thanks, Peter I appreciate that so number one on the stock buyback that was announced last quarter over quarter before when we announced in queue for so.
Obviously, the climate was a little bit different than <unk>.
Probably in agreement with you that.
Albeit that's over a three year period, where we kind of made that statement. So if you look at our buyback. So we can only buy X number of percentage per the actual daily volume or liquidity. So even if we wanted to make that.
Foray into kind of a more aggressive approach we'd be limited to the amount of.
Activity there so you.
<unk> can be pretty.
Comfortable with that that we would not be doing that in cash preservation would be really important and critical to us right now.
Far as the inventory I would just say that the inventory was at $33.5 million.
At or close of our year end and it is 36.5 million now so two things for that number one is we have a supply agreement that's in place.
With our more Tonight supplier.
Within the provisions that agreement, we have to take on X number of inventory given the softest in this quarter between the wholesale side in Duluth Gyms, you can just look and see that's where the delta is so certainly from business owners in my entire team. We're looking at all of those factors and all of those things moving forward and we will address of <unk>.
<unk> as the business needs by the same token we learned that when we had our transition during COVID-19 one of the main things that really drove our growth and we drove the growth of where we are is the fact that we had the inventory to be able to pick back and ship, whereas other people were having difficulty in the supply chain.
There is supply chain.
Shoes out there for a lot of different businesses due to COVID-19 enclosures in China and Asia back regions. So we maintain a pretty strong inventory level and we feel confident with it we've also had a.
Kind of a large cash build up over the last two years with a cash position. So we're kind of looking at both we look at inventory now in the composition inventory being much different than it used to be because it's finished jewelry, so fine jewelry with gold and platinum as a commodity so it's very liquid of bullets, but it's pretty much cash for us whereas in Japan.
First it was primarily a concentration of loose gemstones. So also would that being said we've made two product category launches one being obviously the lab groaned diamonds, which is.
Large moving category for us and you see the percentages keep climbing as a percentage of sales.
Direct to consumer business model.
As well as that.
Need to build up inventory and make investments in inventory to support that business. So look to us to be responsible but we believe we're in a good position heading into holiday to capture whatever's out there for US and then look to us to kind of taper back and keep an eye on an inventory moving forward and make necessary adjustments with whatever partners we need to.
But various okay that makes sense and thanks for the inventory clarification I realized I was looking at the long term inventory only.
So you also announced a while back that you are going to try to open up.
Distribution centers.
In different areas around the world I could China, we had started with and there was talk about Europe are we perhaps putting those plans on ice or what's happening with that at this point.
So both of those are strategic.
Partnerships, whereas very low overhead or low point the entry.
Low cost so it's just a partnership I'm in pretty.
Pretty much a percentage of sales. So these are distribution partners. So.
Basically the partners carry our goods they distribute our products that report our sales and pay for them. So there is there is no cost associated with carrying costing.
Any carrying cost other than basic.
Basic supporter co op type arrangements with them.
Got it okay. Thank you were pretty good we're pretty good there.
Another good question.
The next question comes from <unk> capital Partners.
Hey, guys. This is rayon for a man.
Okay ran the youngest.
And could just.
So we see here that gross margins dropped a little bit and then also.
You guys continuing to lean into sales and marketing I was wondering if you guys can provide a little bit of color on both of those points there.
Yeah. So it's certainly were driving more to direct to consumer so we're going to continue to fuel and feed the sales and marketing opportunities for us.
As we start to build these new products, we've got advertising support those businesses to make strategic investments in notes.
Also as the business shifts to more of a direct to consumer model.
Much different than a wholesale model, which is just basically bulk ship loose.
Loose gemstones.
On the direct consumer model, we need support so we need photographers, we need videographers we need.
We need different personnel to create kind of the look and feel of an upcoming.
Brand and probably a leading brand in this space. We feel we are doing a fantastic job. The team is doing a wonderful job kind of transitioning to new look and feel <unk>.
Certainly.
We believe that the headwinds that we're seeing is strictly on the wholesale side of the house.
As far as the margin side of the equation.
Certainly we are taking a look at what.
What is the new norm at a new runway down the margin as I stated over quarter over quarter.
And the jewelry industry margins, we look for 45% to 50% range. We still are there that's where we still lipitor look towards we had a couple things within the quarter. We did a diamond event, which was all in diamond event, which had some margin in fact, there just because we wanted to move through goods and see and test, where we want it to be leading at the holiday.
So that was really important to us and the other thing there is one major.
I wouldn't say concerned but thing that we're looking at right now is our shipping cost certainly as we become more of a.
Direct to consumer model were shipping individual goods, one by one we're moving goods all over.
Both foreign and domestic to be able to satisfy the consumer needs. So are.
Shipping cost at <unk>.
Grow considerably so we're trying to kind of keep an eye on that and basically make sure that we get that under control and how do we do that we do that from consolidations shipping point. So we've already gotten very aggressive they're so leaning into holiday. We believe we're going to be in a better place for that and we certainly believe that the margins would incur.
Increase from there.
Great. Thank you that's available.
Also one of my question on the on the sales and marketing side I was wondering if you guys have noticed any changes in digital marketing efficiencies.
Just given the broader pullback in marketing budgets that we've seen kind of across the industry.
You know it's.
Definitely something that we really really need to dive into and make very informed database decisions. So much like I alluded to over the past year and a quarter before.
It is getting more complex and complicated to get those cost per clicks down and as we become more.
Forthright in building, our brand and our awareness and showcasing who we are and what we're about others are keying in utilizing some predatory marketing tactics to buy our search terms and keywords and specifically Charles in Culver Dot com or namesake. So we're keeping an eye on those so we've got to make sure that we deploy capital.
In the right place.
We do a mid to lower funneled type approach to our marketing so we'd like conversion we loved the conversion based but we've now started to lean in and step on some other types of opportunities more to drive more organic as opposed to the paid side. So more awareness building more.
Towards our video capabilities, so as we alluded to and spoke about the investments that we're making in our direct to consumer video content that we can simulcast extreme lives shopping capabilities accrue.
Across the board, we're looking to monetize dove. So what does that mean that means we will look more to connected teevee will look more towards.
Either a long form direct response programming and waves to kind of spend some capital into sales and marketing side to drive in monetize. So certainly we're mindful of the spend most companies are trying to cut back but.
Leaning into holiday, it's a very very difficult balance.
Hold back during we feel during what we feel is the most.
The important part of our.
This cycle right. This is the hottest time of the year are heading into the season, where.
Lumped into the quarter, we've got two months to go to drive everything and anything that we can to our destination.
Alright, Thanks, guys appreciate it.
The next question comes from San J.
I'm, having a <unk>.
<unk> pants.
Hi, good afternoon.
Okay. So I just wanted to kind of ask about I know you don't generally give guidance, but if you could provide some visibility on cash flows going forward.
One of the previous call those mentioned I think a lot of cash has been spent building up inventories.
How does how do you see that.
Going forward. This year what are what are the predictions.
Do we expect a positive cash flow going forward or do we should we expect these inventories.
To eat up a lot of the cash flow going forward.
Yeah, Great question, Sanjay So I'm going to tell you from my perspective, and you might direct.
Team here, we're very comfortable where we're at as far as our cash position, we're comfortable as far as our inventory. We believe we got way ahead of this cycle to be in stock in time for holiday. So very little purchases are required moving in other than.
Made to order a special orders that we're going to go into holidays. So we feel we're well positioned one of the caveat to success in cash flow, which we don't give numbers or guidance as as you stated before but certainly we believe that with the inventory and with the sales that we anticipate heading into this quarter and this holiday we will start to build up cash.
Our ability to kind of negotiate or be strong with our vendor community and kind of get an understanding of where we are and kind of our current arrangements and agreements will be critical to the quarters to come so I don't want to get into that but certainly we're mindful of the inventory, we're mindful of cash and cash.
<unk>, but.
But we will.
We will have a clearer vision as we start to get past this quarter here.
Okay and just on the.
You mentioned.
Prior contract for the <unk> I know you guys have been obviously focusing on the lap diamond space in the past year or so.
So how should we think about.
Right right. So I think the sales are down this quarter from from last quarter.
And given the.
This applies I'd have to be purchased based on the contract.
How are we going to.
Look at more than Mike and this year in the coming years.
And.
Is there going to be an increased focus on that.
Yeah. So very pointed question, so moist and I right now is gaining traction across across the world.
The lab grown movement is is benefiting from voice Tonight industry, and so Charles Call-board is definitely benefiting too as well I think where we saw headwinds it just literally.
Literally came this quarter was the wholesale side of the equation in anticipation of independence being concerned.
Whether they should put an inventory or whether it should buildup stock in inventory if.
If you recall.
When I first took over a CEO , we transition to supply agreement into a longer term position so that definitely benefited us it helped us throughout.
So that definitely helps the.
The supply coming in but we will certainly kind of continued to look at those things will look at consumption models.
We also have more tonight outlet dot com as in owned property, so that particular businesses growing too as well with the kind of a a lower cost type of product.
Hitting the market. So the consumer now may be pinched for dollars and looking for a <unk>.
Cost alternative and we're going to have that whereas in the past. So we didn't have that so look to us to build product with multiple stones and consume more goods. So we're we're very comfortable we will lean on Moya Tonight. It just so happens that right now in the lab grown diamond side of the house.
We were very low in SKU, count and styling and the consumer was asking for certain things so doing a gap analysis my <unk>.
Probably development merchandising team did a fantastic job of bringing some incredible collections forward or couture Diamond collection as well as our color vision for the future, which is mixed with lab grown diamonds, but now we will shift in balance for holiday, which is more of a bridle and engagement season right now you'll look we have a breitling engagement.
Event going on right now and it's primarily focused on moist night gemstones and larger stones, which has a higher value proposition. So we believe that.
We've still seen increase.
Seen increases across the board and the moist night up until.
Kind of this quarter, which wasn't a bridle period. So we anticipate any of their bio period of next month.
A month or so so looked at that to kind of gauge the future state of where we are going to be but certainly both of our products are very very strong our core businesses more tonight. It has been more tonight, and we will continue to be.
But we will definitely continue to grow the diamond opportunity.
Thanks, John .
It does conclude today's question and answer session.
I have a 1910 conflicts back up <unk>, President and Chief Executive Officer for any closing remarks.
Thank you Amy.
While we understand the impacts of.
The current environment, we certainly are confident in our ability and our products that were bringing to market and we certainly appreciate your time today on behalf of everybody here at Charles a cohort I want to thank you for your continued support and interest of Cta Char and are made not mine movement.
The topic is now completed thank you for attending today's presentation.