Caesarstone Ltd. (NASDAQ:CSTE) Q3 2023 Earnings Call Transcript

Nahum Trost: So Stanley, we believe that the decreasing volume are mainly related to the soft market conditions on the back of a higher inflation globally, not only in the US. You saw the results in other regions as well. So it’s on the back of higher inflation and on the back of higher interest rate, which results in a way in residential customers postponing certain projects or innovation projects. So this is the major impact that we saw globally and in the US. On the other hand, we saw some positive signs, as we said. In the big box channel we’re starting to see positive signs. In the commercial channels, as Yosef mentioned earlier. So this is on the other end.

Stanley Elliott: Yeah. The big box channel actually was interesting comment. I mean, I think they’ve talked about their day sales being down modestly. Was your comment really more of incremental SKU, are you’re doing better in that market or maybe it’s just performing better than some of the fabricators which you mentioned were having a bit more of a struggle?

Yosef Shiran: No. So our portion there is quite small. So we have a lot of potential growth. And it’s a matter of focus and offering the right offer to the different consumers, including big boxes. It’s not only — and also commercial contractors and others. And as to the markets, just to add to what Nahum said. So that a part of the market decline, of course, also the competition accelerates under these situations because everybody is fighting for the same dollars. So I think that we, on the sales, we suffer from the market situation and also increasing competition. However, we are doing many things that we believe will allow us to perform better than the market in the future.

Stanley Elliott: Great, guys. That’s it for me. Thanks so much. Best of luck.

Yosef Shiran: Thank you very much.

Nahum Trost: Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Yosef Shiran for closing remarks.

Yosef Shiran: Thank you. And thank you all for your attention this morning. We look forward to updating you on our progress next quarter. See you.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.