Core & Main, Inc. (NYSE:CNM) Q4 2022 Earnings Call Transcript

Pat Baumann: And as you think about those buckets and thanks for the color, are you expecting like flattish pricing in all those buckets? Are you expecting maybe the more specified bucket that’s two-thirds of sales to be up a little bit? And the rest to be down a little bit. Any color on that?

Mark Witkowski: Yes. The way we think about it is these non-pipe products, we’re typically supplying a solution to our customers, so we’re typically not just providing PVC pipe or ductile iron pipe, it’s part of a package where we’re selling valves, fittings, hydrants, really a full solution and we’re anticipating that project that we’re selling, the pricing is going to be stable overall for 2023. There could be some puts and takes in certain product categories, but overall, we think that pricing is going to be stable as we sell projects.

Pat Baumann: Okay, great. And then one last one for me. Any kind of parameters that you could provide given that we’re almost through March in terms of like first quarter sales or margins? Any color would be helpful. I think, in modeling for everybody?

Mark Witkowski: Yes, sure. I think as we’ve anticipated, the first quarter is going to coming in as expected with some of the softness and the residential end market in particular. So I think from a volume standpoint, there’s going to be some pressure in Q1. We did see some sequential gross margin reduction from Q3 to Q4 of €˜22, I expect we’ll continue to see that into Q1 and Q2 of 2023 as that kind of gross margin normalizes as we’ve talked about. So those are probably the key pieces to think about as we get into the first quarter of 2023.

Pat Baumann: Okay. Thanks so much for the color. Appreciate it.

Mark Witkowski: All right. Thank you.

Steve LeClair: Thank you.

Operator: we have no time left for any further questions. So it would be my pleasure to hand back to Steve LeClair for his closing remarks.

Steve LeClair: Thank you all again for joining us today. It was a pleasure to have you on the call. Fiscal 2022 was an outstanding year for Core & Main. We are well positioned to build on our positive momentum and we have a strong outlook for fiscal 2023. We are confident that our strategy will drive further value creation as we continue to execute on our growth strategies and deliver on our capital deployment model. We have a tremendous amount of opportunity ahead of us and we are well positioned to execute on those opportunities. Thank you for your interest in Core & Main. Operator, that concludes our call.

Operator: Thank you everyone for joining. This concludes the call, and you may now disconnect your lines.