The Cooper Companies, Inc. (NYSE:COO) Q1 2023 Earnings Call Transcript

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Matthew Mishan : Okay, that’s fair. And then for Al, I think one of the things we’ve heard is that some of your competitors did pull back on some of the extended parameters or extended ranges, that may have been not the kind of higher volume but could add up for you, I guess, is that enough to help you kind of drive some share? Or is that just something that just has, like increased relevance for Cooper with ECP?

Al White: I think that, that does drive share gains for us. And I think longer term, it’ll drive share gains for us. Yeah, some of our competitors that pull back on some like the extended range, or I should even call it extended range in our world, they would kind of be more regular toric ranges that are out there. But some of the broader toric ranges. We haven’t really seen much impact from that yet, because a lot of that activity is fairly new in the marketplace. But I do think one of the differentiators for us and one of the reasons we take share and have taken share consistently for a long time is the breadth of our product portfolio, it’s very difficult to manage those wide parameter ranges, it just is from a production perspective, all the way through distribution, and all your packaging and labeling and inventory management and so forth.

As you can imagine, when you get those really wide SKU ranges, it just creates a much more complex environment. So we’re pretty good at that. We’ve invested a lot of money at that over the years. As I said, that’s a differentiator for us. And I think it’ll continue to put us in a position to help us gain a little bit of share. So, like you said, I wouldn’t overdo that because the dollar amounts aren’t that big. But anytime you can get something to differentiate you in a positive way, that’s a good thing. And I would say that’s one of those things.

Matthew Mishan : Thank you.

Operator: Our next question comes from the line of Robbie Marcus from JP Morgan, please proceed.

Robbie Marcus : Oh, great. Nice quarter and thanks for taking the questions. Maybe to start. Al if you could quantify if at all, any of the share you think you gained as competitors seem to have had more supply chain issues than you did around the world, and any impact to the different product lines?

Al White: I don’t think, frankly, very much. Some of the issues that competitors have had around supply chain are relatively recent, we’ve had some of our own challenges around supply chain, I don’t want to act like we haven’t. So frankly, I don’t think there’s very much this come from supply chain challenges, they haven’t been significant or long enough to really start moving market share at this point in time. If they hold and they continue to be a challenge, I do think that could provide positive upside to us, but I wouldn’t put much on it for the results that we’re reporting right now.

Robbie Marcus: Got it. Okay, great. And maybe I know, you’re not assuming that the Cook deal closes in guidance. But you know, hopefully, we’ll know by later in the year. Do you have any thoughts on where it might be either accretive or diluted at this point, if it goes through as is and what it might look like if you have to divest any of the assets? Do you think it would still be accretive?

Al White: Yes, I mean, as you can imagine, right, highly dependent upon what we have to sell off and what price we would get for what we have to sell off. At this point in time, I just can’t answer that question. If I could, I would. But yeas, at this point, I just can’t give you color on that one.

Robbie Marcus: Okay. Do you think you’d still do the deal if it’s going to be dilutive at this point?

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