Carbon Black, Inc. (NASDAQ:CBLK) Q2 2018 Earnings Conference Call - Final Transcript
Aug 07, 2018 • 05:00 pm ET
(Operator Instructions) Will Slabaugh, Stephens, Inc.
And appreciate the color on July. Given the rapidly changing sales trajectories that we've seen lately, I was wondering, if you'd be willing to give us any more color on those trends, just in terms of, if you feel like we've seen the worst of it, maybe in mid-July or whenever that may have been, and it's slowly been improving or was that negative 10.5% or so is fairly representative on what you've seen in the last three or four weeks?
Sure Will. It's Steve, thanks for the question. And as you know, typically we don't break out the cadence and comps. But I think given the circumstances here that we should provide you guys with a little bit more color and provides some interim guidance around what has occurred here. So I think I'll first go back to last year, into all the way back to the November, I think it's important to understand the impact of the consumer sentiment. So you go back to the third quarter of 2017, where we were 1.1% positive, and directly after the earnings call, we saw a very sharp decline, the quarter ended up negative 3.9%. But the comp trends have basically been between negative 5% and negative 6%, since that event and the comments from our founder. Fast forward to July to your point so as you can see the third quarter was a negative -- the second quarter of this year was negative 6.1%, the cadence of the comps throughout the periods in the second quarter were very consistent to that overall quarter number and again after the July 11 article that came out from again very inexcusable and irresponsible comments from Mr. Schnatter, we saw another precipitous drop of roughly 4% from the trend. So we do think -- as you saw negative 10.5% for July, we do think we have stabilized a number there. I don't want to get into the August numbers because it is very much very early into period eight here, but we do think we've experienced the significance of the decline and we've provided our outlook based on the infancy of what we have seen and that's why we have reguided it to negative 7% to negative 10% for the full year.
Got it and thanks for that. I wanted to ask you about values well. It sounds like the value tests that you've run so far it's tough to discern whether it's going to meet expectations or not, just given all that's going on. But this goal I know has been out there for a while in terms of improving everyday value message to the customer. Where are we in terms of finding a value platform you feel like that can be more permanent on the menu that the customer can rely on and what should we expect to see from a value perspective from you guys in the coming quarters?
Sure. Well it's Steve again. So I