Core Insights - The article compares Yeti (YETI) and Pool Corp. (POOL) to determine which stock is more attractive to value investors [1][3] Valuation Metrics - YETI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to POOL, which has a Zacks Rank of 5 (Strong Sell) [3] - YETI's forward P/E ratio is 14.02, significantly lower than POOL's forward P/E of 26.68, suggesting YETI is undervalued [5] - YETI's PEG ratio is 1, while POOL's PEG ratio is 2.15, indicating YETI's expected EPS growth is more favorable [5] - YETI has a P/B ratio of 4.78 compared to POOL's P/B of 8.44, further supporting YETI's valuation advantage [6] Value Grades - YETI holds a Value grade of B, while POOL has a Value grade of F, highlighting YETI's superior valuation metrics and earnings outlook [7]

Core Insights - YETI Holdings, Inc. reported Q1 2024 earnings that exceeded estimates and raised full-year guidance, despite the stock being down over 20% year-to-date [1] - The company is focusing on international growth, which has shown significant potential with a 30% increase in international sales, now representing 19% of total business [2][19] - New product launches, including a $200 hard cooler and cast iron cookware, are expected to drive future growth [8][23] Financial Performance - Q1 2024 revenue was approximately $341 million, a 13% increase compared to Q1 2023, with direct-to-consumer sales at $188 million (up 12%) and wholesale sales at $153 million (up 13%) [15][19] - Gross profit for the quarter was $104.8 million, with net income of $15.9 million, reflecting growth from the previous year [24][25] - The company increased its gross margin estimate to 58% and adjusted operating margin to between 16% and 16.5% [25] International Expansion - YETI's management emphasized international growth as a top priority, with plans to build commercial organizations tailored to different regions [2] - The company has seen international sales grow by over 30% year-over-year, indicating strong demand outside the U.S. [19][28] - New hires, such as Naoji Takeda as Managing Director for the region, are expected to enhance international market success [2] Product Development - Recent product launches include innovative drinkware items like stackable cups and French presses, which have contributed to stable revenue growth [3][23] - The introduction of a new line of cast iron cookware is anticipated to significantly impact growth, aligning with the company's strategy to expand its product offerings [8][23] - The company is also focusing on enhancing its cooler product line, with a new $200 cooler aimed at capturing a broader market segment [32] Valuation and Market Position - YETI's trailing P/E ratio was reported at 19.59, with an estimated intrinsic value of approximately $44 per share [6][20] - The company maintains a healthy balance sheet, with sufficient current assets to cover liabilities despite a decrease in cash balance due to acquisitions and stock repurchases [31] - The valuation grade for YETI is currently a "C-", indicating room for improvement compared to sector peers [11][30]

YETI Holdings, Inc. (NYSE:YETI) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants Thomas Shaw - Vice President of Investor Relations Matthew Reintjes - President & Chief Executive Officer Michael McMullen - Senior Vice President, Chief Financial Officer & Treasurer Conference Call Participants Randy Konik - Jefferies Anna Glaessgen - B. Riley Peter Benedict - Robert W. Baird John Kernan - TD Cowen Peter Keith - Piper Sandler Brooke Roach - Goldman Sachs Operator Good day and welco ...

The premium brand's profits are going up.Shares of cooler and insulated drinkware maker Yeti Holdings (YETI 11.15%) jumped higher on Thursday after the company reported stronger-than-expected financial results for the first quarter. As of 11:15 a.m. ET, Yeti stock was up 12% today.Encouraging margin expansionFor the first quarter, Yeti generated net sales of $341 million, up 13% year over year. The company showed growth across product categories, sales channels, and geographic regions -- everything came in ...

Yeti (YETI) reported $341.39 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.8%. EPS of $0.34 for the same period compares to $0.18 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $333.79 million, representing a surprise of +2.28%. The company delivered an EPS surprise of +36.00%, with the consensus EPS estimate being $0.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Yeti (YETI) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 36%. A quarter ago, it was expected that this maker of outdoor and recreational products would post earnings of $0.96 per share when it actually produced earnings of $0.90, delivering a surprise of -6.25%.Over the last four q ...

Financial Performance - Net sales increased 13% to $341.4 million, compared to $302.8 million in the same period last year[5] - Gross profit increased 20% to $194.8 million, with a gross margin of 57.1%, up from 53.5% in Q1 2023[6] - Adjusted EPS increased 89% to $0.34, while net income per diluted share rose 50% to $0.18[11][12] - Adjusted operating income increased 82% to $39.6 million, representing 11.6% of adjusted sales[11] - Operating income rose to $25,817,000, a 70.9% increase compared to $15,098,000 in the prior year[27][38] - Net income for the quarter was $15,855,000, up 50.3% from $10,564,000 in the same quarter last year, with diluted earnings per share of $0.18[27][38] - Adjusted net income for the quarter was $29,320,000, compared to $15,531,000 in the same period last year, indicating strong operational performance[38] Sales Growth - Direct-to-consumer sales increased 12% to $187.8 million, and wholesale sales increased 13% to $153.6 million[7] - International net sales surged 32%, while U.S. net sales grew by 9%[6] - The company reported a 9% increase in U.S. net sales, totaling $275.796 million, compared to $252.986 million in the prior year[42] - International net sales increased by 31.8%, reaching $65.598 million, up from $49.810 million year-over-year[42] - The drinkware category generated $214.580 million in sales, a 12.7% increase from $190.287 million in the previous year[42] Future Projections - For Fiscal 2024, adjusted sales are expected to increase between 7% and 9%, with adjusted net income per diluted share projected between $2.49 and $2.62[16] - Adjusted net sales for fiscal 2024 are projected to be between $1.798 billion and $1.832 billion, compared to $1.680 billion in fiscal 2023[45] - Adjusted operating income for fiscal 2024 is expected to range from $287.687 million to $302.222 million, reflecting an increase from $262.785 million in fiscal 2023[45] - Adjusted net income for fiscal 2024 is forecasted to be between $214.512 million and $225.366 million, up from $196.987 million in fiscal 2023[45] - Adjusted operating income as a percentage of adjusted net sales is projected to be between 16.0% and 16.5% for fiscal 2024, compared to 15.6% in fiscal 2023[45] Expenses and Liabilities - SG&A expenses rose 15% to $169.0 million, accounting for 49.5% of sales, up from 48.5% in the prior year[9] - Total current assets decreased to $703,185,000 from $914,405,000 at the end of December 2023, primarily due to a reduction in cash[29] - Cash and cash equivalents at the end of the period were $173,911,000, down from $438,960,000 at the beginning of the quarter[30] - Total liabilities decreased to $472,905,000 from $573,582,000 at the end of December 2023, reflecting improved financial health[29] Inventory and Share Repurchase - The company reported a significant increase in inventory to $363,919,000 from $337,208,000, suggesting a strategic buildup for future sales[29] - The company entered into a $100 million accelerated share repurchase agreement, completing the repurchase of approximately 2.6 million shares[17] - The weighted average shares outstanding for diluted earnings per share is expected to be 86,105 for fiscal 2024, down from 87,403 in fiscal 2023[45] Adjustments and Recalls - The company incurred $21.700 million in product recall adjustments for the twelve months ended December 30, 2023[48]

Wall Street analysts forecast that Yeti (YETI) will report quarterly earnings of $0.25 per share in its upcoming release, pointing to a year-over-year increase of 38.9%. It is anticipated that revenues will amount to $334 million, exhibiting an increase of 10.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

The Peter Lynch philosophy of “Buy what you know” is something I tell people all the time. What it means is, when you want to invest, you should invest in companies that make the products or deliver the services you use every day. From a psychological point, it can help you stay invested and interested in companies.However, sometimes those companies that you know and love are not rocking and rolling the way they used to. Sometimes, there’s an underlying shift in the core business that you may not be aware o ...

Sales Channels - In Q4 2023, the direct-to-consumer (DTC) channel accounted for 60% of net sales, up from 58% in 2022, while the wholesale channel represented 40%, down from 42%[47]. - The direct-to-consumer (DTC) channel represented 60% of net sales in 2023, with approximately 15% of net sales coming from the Amazon Marketplace[122]. - In 2023, the wholesale channel accounted for 40% of the company's net sales, with no single retail partner contributing 10% or more of gross sales[119]. Product Development and Innovation - The company introduced redesigned versions of the Hopper M30 Soft Cooler and Hopper M20 Soft Backpack Cooler in Q4 2023, along with new sizes, the Hopper M15 and Hopper M12[42]. - The product line includes a variety of drinkware made from durable, kitchen-grade, 18/8 stainless steel, with new products introduced in 2023, including the Rambler beverage bucket and wine chiller[44]. - The company has a disciplined, stage-gate product development process to ensure quality control and optimize speed-to-market for new products[54]. - The company is committed to ongoing product development and enhancements to meet changing consumer preferences and maintain sales growth[84]. Financial Performance - Consolidated net sales for the fiscal year ended December 30, 2023, were $1.6 billion, an increase from $1.6 billion in 2022[286]. - Gross profit for the fiscal year ended December 30, 2023, was $943.2 million, compared to $763.4 million in 2022, reflecting a gross margin improvement[294]. - Net income for the fiscal year ended December 30, 2023, was $169.9 million, up from $89.7 million in 2022, representing an increase of 89%[294]. - Basic net income per share for the fiscal year ended December 30, 2023, was $1.96, compared to $1.04 in 2022[294]. - Total assets as of December 30, 2023, were $1.3 billion, an increase from $1.1 billion as of December 31, 2022[290]. - Total stockholders' equity increased to $723.6 million as of December 30, 2023, from $526.5 million in 2022[292]. - Cash provided by operating activities for 2023 was $285.942 million, significantly higher than $100.894 million in 2022[301]. - The company reported a net cash increase of $204.219 million for 2023, compared to a decrease of $77.448 million in 2022[301]. Market Expansion and Strategy - The company continues to expand internationally, focusing on brand awareness and wholesale expansion in markets such as Canada, Australia, New Zealand, Japan, and Europe[51]. - Future growth is dependent on expanding into additional consumer markets, including Canada, Australia, Europe, and Japan, where different challenges may arise[91]. - International expansion into markets such as Canada, Australia, Europe, and Japan is a key long-term strategy, but significant costs and risks are involved[130]. Supply Chain and Manufacturing Risks - The company faces risks related to supply chain disruptions, including potential loss of key manufacturers, which could negatively impact price, quality, availability, and timely delivery of products[106]. - The reliance on third-party contract manufacturers poses risks, including operational difficulties and inability to meet production deadlines, which could harm business performance[100]. - The concentration of business activity with certain manufacturers increases vulnerability to disruptions, which could result in lost sales and distribution delays[106]. Regulatory and Compliance Challenges - The company is subject to various government regulations that could adversely affect its business operations and results[77]. - The company faces risks related to the compliance of independent suppliers and manufacturing partners with ethical business practices, which could harm its reputation and results[128]. - The company is exposed to risks associated with international trade, including compliance with foreign laws and potential political instability in manufacturing countries[111]. Marketing and Brand Management - Significant investments are being made in marketing efforts, including partnerships and community events, to promote products and attract new customers[83]. - The company emphasizes the importance of maintaining and strengthening its brand to attract new customers and sustain ongoing demand for its products[82]. Economic and Market Conditions - Economic conditions, including inflation and consumer spending trends, significantly influence the company's sales and profitability[142]. - Public health crises, such as the COVID-19 pandemic, have caused significant disruptions in supply chains and may continue to impact the company's operations[144]. Financial Risks and Liabilities - The company is exposed to credit risk from retail partners, which could harm results of operations if a significant number fail to meet payment obligations[161]. - Changes in tax laws, such as the Inflation Reduction Act of 2022, could negatively impact the company's effective tax rate and financial condition[159]. - The Credit Facility requires the company to utilize a portion of cash flow from operations for debt payments, limiting available cash for other business needs[153]. Inventory and Asset Management - Inventory decreased to $337.2 million as of December 30, 2023, from $371.4 million in 2022, indicating improved inventory management[290]. - The allowance for credit losses was $0.5 million as of December 30, 2023, down from $0.7 million in 2022, reflecting improved credit risk management[309]. - At December 30, 2023, inventory reserves were $2.2 million, a decrease from $37.3 million at December 31, 2022, primarily due to the scrapping of unsalable recalled inventory[326]. Employee Relations and Workforce - The company employs approximately 1,050 people worldwide, with 88% of the workforce located in the United States, and maintains positive employee relations[71]. - Attracting and retaining skilled personnel is critical for managing growth and executing business strategies effectively[94]. Technology and Cybersecurity - The company acknowledges the need for continuous improvement in technology to meet customer expectations for a seamless omni-channel experience[93]. - Cybersecurity incidents could disrupt operations and lead to financial losses, despite existing security measures[148]. Environmental, Social, and Governance (ESG) Goals - The company’s ESG goals include advancing racial and ethnic diversity and reducing greenhouse gas emissions, but achieving these goals is subject to numerous risks[115]. - The company’s sales could be negatively impacted by changing consumer preferences and new governmental requirements related to climate change[117].