Acuity Brands, Inc. (NYSE:AYI) Q2 2020 Earnings Conference Call - Final Transcript

Apr 02, 2020 • 10:00 am ET

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Acuity Brands, Inc. (NYSE:AYI) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from Ryan Merkel with William Blair. Your line is now open.

Analyst
Ryan Merkel

Hey, thanks, good morning. So, first off, Neil, you mentioned opportunities that COVID presents. So, I'm curious where in your business do you see revenue opportunity and where do you see the biggest challenges.

Executive
Neil M. Ashe

Thanks, Ryan. As I said, we're trying to deal with both of the challenges and the opportunities. So the challenges are obvious, as we scale the business appropriately. We feel like we entered this period with a -- with developing momentum around our product portfolio in the core lighting business and we have the opportunity to continue that process as we emerge from this.

So, the combination of the strength of our supply chain as we've been able to manage and have consistent supply through this process, as well as some of the new product portfolio that we've been rolling out, give us momentum for the -- whenever we emerge from this and we think those are real opportunities.

We also think there's opportunities to do some of the hard work under the covers that we need to do to evolve the Company. While we can't solve those and make those changes in months, we can get a little bit of a head start, while we're -- while we have folks that have more time on their hands than they would have otherwise.

Analyst
Ryan Merkel

Got it, okay. And then maybe just on the bigger challenges that you see. I think the retail segment is a big market for you. Are you seeing push-outs and cancellations there? Is that an area that we should expect to be pretty weak?

Executive
Neil M. Ashe

So on the retail side, obviously, I've got a new set of eyes on the situation here and we're going to evaluate the retail side for the long term and for the short term. And so, let me address a long-term question first. So, we're evaluating the customers that we reach with our products through the channel generally and try to get a better understanding of who exactly we're serving through that channel and how effective they feel like they're being served through that channel. So, we'll go through that process.

Specifically, on the short-term, we've seen fairly consistent results so far, but we expect the demand shock to flow through them as well. We just don't know exactly when that's going to happen.

Analyst
Ryan Merkel

Got it, okay. I'll pass it on. Thanks.

Executive
Neil M. Ashe

Thanks, Ryan.

Operator
Operator

Our next question comes from Christopher Glynn with Oppenheimer. Your line is now open.

Analyst
Christopher Glynn

Thank you. Good morning. Neil, good to hear you on your first call. And you discussed improving the existing business and the adaptability, I'm just curious, in your view, maybe this question is a little early, but to what extent might this entail a fundamental margin reset over time. And if so, what are your views on enacting such an adaptation quickly or slowly?

Executive
Neil M. Ashe

Thanks, Christopher, it's good to be with you. I -- that's