Investors looking for stocks in the Leisure and Recreation Products sector might want to consider either Yeti (YETI) or Pool Corp. (POOL) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companie ...

Financial Data and Key Metrics Changes - Sales decreased 4% to $445.9 million, slightly below expectations due to cautious spending from consumers and retail partners [35][36] - Adjusted net income decreased 7% to $55.2 million, with adjusted net income per share down 6% to $0.66 [46][56] - Adjusted gross profit decreased 4% to $257.6 million, representing 57.8% of adjusted sales, a slight increase from 57.7% in the prior year [45][46] Business Line Data and Key Metrics Changes - Drinkware sales declined 4% to $236.4 million, reflecting a challenging U.S. market and temporary inventory constraints [36][49] - Coolers and equipment sales decreased 3% to $200.6 million, with growth in hard coolers offset by a decline in soft coolers [36][37] - Bags business gained traction, with significant opportunities identified in the bags and packs market [36][12] Market Data and Key Metrics Changes - International sales grew 2% to $78.1 million, representing approximately 18% of total sales, with Europe showing strong growth [42][43] - U.S. wholesale channel sales decreased 7% to $197.3 million, driven by cautious ordering patterns from retail partners [39][40] - Direct-to-consumer sales decreased 1% to $248.6 million, accounting for approximately 56% of total sales [37][38] Company Strategy and Development Direction - The company is focused on product innovation, with plans to exceed the target of launching 30 new products in the fiscal year [8][9] - A strategic partnership with Fanatics is set to expand the company's presence in sports, offering team-colored drinkware and hard coolers [19][20] - The company is transforming its supply chain to reduce exposure to U.S. tariffs, aiming for less than 5% of total cost of goods sold to be affected by tariffs on goods sourced from China by year-end [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty and cautious behavior from consumers but expressed confidence in long-term sustainable growth [6][31] - The company is optimistic about the growth potential in international markets, particularly in Europe and Japan [16][17] - Management expects a modest adjustment to top-line expectations, reflecting a prolonged recovery in the U.S. Drinkware market [31][49] Other Important Information - The company repurchased 745,000 shares for $23 million as part of a $450 million share repurchase authorization [47][48] - Inventory decreased 10% year-over-year to $342.1 million, reflecting strategic management of inventory purchases [48] - The company expects full-year sales to be flat to up 2% compared to the previous fiscal year [49][50] Q&A Session Summary Question: Expectations between volume and price in the second half of the year - Management indicated that pricing actions were minor and that volume would be the primary driver of growth, with confidence in international business and innovation in hard coolers and bags [60][64] Question: Ability to chase inventory for the Camino Tota - Management expressed excitement about the bags business and plans to continue investing in capabilities and innovation, with a focus on sustainable long-term growth [65][69] Question: Opportunity for recent innovations to offset lower productivity levels - Management highlighted strong innovation and expansion in product offerings, with expectations for growth in the Drinkware category as supply chain constraints ease [74][76] Question: Sell-through versus sell-in dynamics - Management noted that sell-through outpaced sell-in in the U.S., indicating healthy inventory levels and strong consumer demand internationally, despite some caution from wholesale partners [83][86] Question: Long-term gross margins outlook - Management acknowledged uncertainties related to tariffs but emphasized ongoing efforts to drive product cost efficiencies and the potential for improved margins as the Drinkware category returns to growth [88][90]

Second Quarter 2025 Highlights Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including Adjusted Net Sales, Adjusted Gross Profit, Adjusted Gross Profit as a percentage of Adjusted Net Sales, Adjusted Selling, General and Administrative ("SG&A") Expenses, Adjusted SG&A as a percentage of Adjusted Net Sales, Adjusted Operating Income, Adjusted Operating Income as a percentage of Adjusted Net Sales, Adjuste ...

Austin, Texas, August 7, 2025 – YETI Holdings, Inc. ("YETI") (NYSE: YETI) today announced its financial results for the second quarter ended June 28, 2025. YETI reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP") and as adjusted on a non-GAAP basis. Please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Information" below for additional information and reconciliations of the non- GAAP finan ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Yeti (YETI) , which belongs to the Zacks Leisure and Recreation Products industry.When looking at the last two reports, this maker of outdoor and recreational products has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 11.17%, on average, in the last two quarters.For the last reported quarter, Yeti came out with ...

Group 1 - The market movement observed in YETI Holdings appears to be a case of the market catching up rather than getting ahead of itself [1] - The author emphasizes a data-driven analysis approach combined with practical market understanding to identify trends and actionable investment ideas [1] - The article aims to share research and insights with investors interested in understanding market drivers [1] Group 2 - There is a potential for initiating a long position in YETI through stock or options purchases within the next 72 hours [2] - The article expresses the author's personal opinions and does not involve any compensation from companies mentioned [2]

Core Viewpoint - Yeti's share price has decreased over 70% from its peak of $107 in 2021, indicating a significant decline in market performance since the outdoor boom post-COVID [1] Group 1: Company Performance - Yeti was initially a beneficiary of the outdoor boom following the COVID-19 pandemic, but has since experienced a dramatic drop in share price [1] - The company's current market challenges are reflected in its substantial share price decline, which raises concerns about its future performance [1] Group 2: Investment Insights - TQP Research, which focuses on identifying long-term successful businesses, may consider Yeti as a potential investment opportunity given its current valuation [1] - The investment approach of TQP Research is influenced by principles from renowned investors like Warren Buffett and Charlie Munger, emphasizing value-oriented strategies [1]

Summary of YETI FY Conference Call (June 05, 2025) Company Overview - **Company**: YETI Holdings, Inc. (YETI) - **Industry**: Consumer Goods, specifically outdoor and lifestyle products Key Points and Arguments Company Evolution and Growth Strategy - YETI has evolved from a limited product range in 2016 to a diverse portfolio with over 60 drinkware products and more than 30 cooler products, including hard and soft coolers [4][7] - The company has shifted its sales model from 90% wholesale to 60% direct-to-consumer (D2C) [7] - International sales are projected to reach approximately $400 million in 2025, primarily from Canada and Australia, with growth opportunities in the UK and Germany [8][52] Product Innovation and Expansion - YETI is focusing on product innovation, including new categories such as outdoor cooking and insulated food storage [11][15] - The company has acquired Mystery Ranch to enhance its bags portfolio, with plans to rebrand and relaunch products [16][19] - A powered cooler is in development, aimed at markets with limited access to ice, which is expected to resonate globally [22] Marketing Strategy - YETI employs a community-focused marketing strategy, emphasizing local engagement and brand authenticity [27][28] - The consumer demographic has diversified, with a more balanced male-to-female ratio and a wide range of price points from $20 to $1,500 [29] Consumer Environment and Financial Guidance - YETI revised its revenue growth guidance from 5-7% to 1-4% due to supply chain disruptions and increased tariffs [31][32] - The company is transitioning its supply chain out of China, with only 5% of COGS expected to be sourced from there by year-end [32][61] - Signs of consumer caution have been observed, particularly among wholesale partners, but certain segments like Amazon and corporate sales continue to perform well [34] Category Performance - The drinkware category has seen a decline in sales after significant growth, attributed to market saturation and increased competition [38][41] - The cooler category remains strong, with new product innovations driving growth [46][49] International Expansion - YETI is entering the Japanese market and plans to expand further into Asia, with a focus on establishing wholesale relationships and brand awareness [55] Financial Health and Capital Allocation - YETI expects to generate over $100 million in free cash flow this year, with minimal debt [62][63] - The company has been active in share repurchases and M&A, focusing on innovation rather than building a house of brands [65] Additional Important Insights - The company is experiencing a transition phase with supply chain adjustments and product launches, which may temporarily impact growth [33][60] - YETI's marketing strategy is crucial for maintaining brand loyalty while expanding into new consumer segments and product categories [26][27]

Core Insights - Yeti reported revenue of $351.13 million for the quarter ended March 2025, marking a year-over-year increase of 2.9% and exceeding the Zacks Consensus Estimate of $346.31 million by 1.39% [1] - The company's EPS for the same period was $0.31, down from $0.34 a year ago, but it surpassed the consensus EPS estimate of $0.27 by 14.81% [1] Revenue Performance - International revenue reached $79.85 million, exceeding the three-analyst average estimate of $75.61 million, with a year-over-year increase of 21.7% [4] - U.S. revenue was $271.28 million, slightly below the three-analyst average estimate of $272.80 million, reflecting a year-over-year decline of 1.6% [4] Sales by Channel - Direct-to-consumer sales amounted to $196.22 million, surpassing the four-analyst average estimate of $190.31 million, with a year-over-year increase of 4.5% [4] - Wholesale sales were reported at $154.91 million, slightly below the four-analyst average estimate of $155.01 million, showing a year-over-year increase of 0.9% [4] Sales by Category - Other category sales were $5.31 million, significantly below the average estimate of $7.22 million, representing a year-over-year decline of 23.1% [4] - Drinkware sales totaled $205.60 million, under the average estimate of $212.37 million, reflecting a year-over-year decrease of 4.2% [4] - Coolers & Equipment sales reached $140.22 million, exceeding the average estimate of $128.64 million, with a year-over-year increase of 16.9% [4] Stock Performance - Yeti's shares have returned -9.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of 11.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Sales increased by 3% to $351 million, in line with expectations, driven by strong growth in coolers and equipment and continued momentum in international business [35][36] - Gross profit rose by 3% to $201.3 million, representing 57.3% of sales, a 20 basis point decrease year-over-year [42] - Net income decreased by 12% to $25.8 million, or $0.31 per diluted share, reflecting a decrease of 9% compared to the prior year [45][60] Business Line Data and Key Metrics Changes - Coolers and Equipment sales increased by 17% to $140.2 million, marking the fifth consecutive quarter of double-digit growth [36] - Drinkware sales decreased by 4% to $205.6 million, impacted by a challenging market and supply chain disruptions [37][38] - Direct-to-consumer sales grew by 4% to $196.2 million, representing 56% of total sales [39] Market Data and Key Metrics Changes - International sales grew by 22% to $79.9 million, despite a 500 basis point headwind from foreign exchange [41] - Strong performance noted in Europe, particularly in Germany, The Netherlands, and The U.K., with significant growth opportunities identified [29][30] Company Strategy and Development Direction - The company is focused on three key areas: accelerating product innovation, transforming the supply chain, and maintaining operational discipline [5][8] - Plans to introduce over 30 new products in 2025, up from 24 in 2024, despite supply chain constraints [9][67] - Supply chain transformation aims to reduce reliance on China, with expectations that less than 5% of total COGS will be related to products from China by the end of the year [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating 2025 despite macroeconomic uncertainties and projected headwinds from tariffs and cautious consumer behavior [7][8] - The company anticipates a challenging second quarter with flat to slightly down sales year-over-year, particularly in U.S. Drinkware [51] - Long-term growth potential remains strong, with a focus on international expansion and product innovation [55][93] Other Important Information - The company ended the first quarter with $259 million in cash and a substantial net cash position [46] - Capital expenditures are expected to be approximately $60 million, with a focus on supply chain diversification efforts [60] Q&A Session Summary Question: Number of new product introductions expected for 2025 - The company expects about 30 new products in 2025, compared to 24 in 2024, with a focus on maintaining innovation despite supply chain disruptions [67][68] Question: Impact of tariffs and supply chain changes - Approximately 90% of the $100 million tariff impact is attributed to China, with expectations of a much stronger position by the end of the year as supply chain diversification progresses [73][75] Question: Outlook for the Drinkware business - The company anticipates durable demand in the Drinkware category, with ongoing innovation and a diversified product portfolio to address various consumer needs [79][80] Question: Approach to pricing amid rising costs - The company is focused on targeted pricing strategies while shifting supply chains, aiming for a stable pricing environment that supports long-term growth [89][90] Question: Acceleration of international growth - The company sees significant growth opportunities in established international markets and plans to leverage the launch in Japan to expand further into Asia [91][93]