AUSTIN, Texas--(BUSINESS WIRE)--YETI Holdings, Inc. (“YETI” or the “Company”) (NYSE: YETI) today announced its Board of Directors has appointed Beth Axelrod and Rob Katz, as independent directors, effective December 19, 2023. Following their appointment, YETI’s Board will consist of eight members with significant and diverse public company experience across multiple business sectors, including eCommerce, retail, consumer products, leadership development and hospitality. “ Beth and Rob are strong, respected ...

Financial Data and Key Metrics Changes - The company reported third quarter sales of $434 million, flat year-over-year, impacted by $6.3 million in gift card redemptions related to a product recall [78] - Gross profit increased 13% to $250 million, with gross margin improving to 57.8% compared to 51.3% in the same period last year [21] - Operating income decreased 3% to $71 million, representing 16.5% of sales, while net income also decreased 3% to $53 million or $0.60 per diluted share [15][30] Business Line Data and Key Metrics Changes - Sales in the coolers and equipment category decreased 8% to $172 million, while drinkware sales increased 6% to $253 million, driven by direct-to-consumer (DTC) growth [12][13] - DTC sales grew 14% to $259 million, representing 60% of total sales, with strong performance in Amazon and overall customer acquisition [84] - Wholesale sales decreased 16% to $174 million, impacted by the recall in soft coolers and a significant sell-in comparison versus the prior year [18] Market Data and Key Metrics Changes - International sales grew 20% to $68 million, representing nearly 16% of total sales, with double-digit gains across Europe, Australia, and Canada [21] - The company noted strong consumer demand across major channels, despite a cautious ordering environment in wholesale [89] Company Strategy and Development Direction - The company plans to focus on growing its global brand audience and enhancing its product portfolio through innovation [10] - A new partnership with Tractor Supply is expected to provide complementary distribution and reach new customers [53][80] - The company aims to maintain double-digit growth in DTC while returning to growth in wholesale, with a sales mix expectation of approximately 60% for the year [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming holiday season, citing a strong lineup of new products and the brand's resilience [33] - The company anticipates approximately 10% sales growth in the fourth quarter, supported by balanced category growth and new product launches [23] - Management acknowledged ongoing uncertainties in the consumer and macro environment but remains confident in the brand's strength and consumer demand [33] Other Important Information - SG&A expenses increased 20% to $179 million, driven by higher incentive compensation and investments in growth [14][28] - The company ended the third quarter with $281 million in cash, a significant increase from $78 million in the previous year [25] Q&A Session Summary Question: How do you view the sell-through and overall sales trends in recent months? - Management noted strong sell-through growth in the U.S. wholesale channel, despite a cautious ordering environment [37] Question: Can you provide insights on the new distribution agreement with Tractor Supply? - Management highlighted the long-term potential of the partnership, emphasizing its complementary nature to existing distribution channels [42][44] Question: What are the strategic objectives for 2024? - Management indicated a focus on brand, product, channels, and geographies, with plans to strengthen organizational competencies and improve operational efficiency [117]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements reflect the significant impact of 2023 voluntary product recalls on sales and liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $791,332 | $718,920 | | Cash | $281,360 | $234,741 | | Inventory | $341,348 | $371,412 | | **Total Assets** | **$1,155,882** | **$1,076,765** | | **Total Current Liabilities** | $360,829 | $409,040 | | Accounts payable | $179,086 | $140,818 | | **Total Liabilities** | **$517,097** | **$550,288** | | **Total Stockholders' Equity** | **$638,785** | **$526,477** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $433,561 | $433,556 | $1,138,920 | $1,147,226 | | Gross profit | $251,251 | $222,407 | $627,959 | $596,366 | | Operating income | $61,877 | $68,467 | $127,306 | $170,103 | | Net income | $42,657 | $45,520 | $91,292 | $117,431 | | Diluted EPS | $0.49 | $0.52 | $1.05 | $1.35 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Oct 1, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $114,769 | $(72,215) | | Net cash used in investing activities | $(58,263) | $(40,417) | | Net cash used in financing activities | $(11,931) | $(120,213) | | **Net increase (decrease) in cash** | **$46,619** | **$(234,426)** | - In January 2023, the company initiated a global stop sale and subsequent voluntary recall for certain soft cooler and gear case products due to a potential safety concern with magnet-lined closures[71](index=71&type=chunk) Product Recall Reserve Activity (in thousands) | Item | Amount | | :--- | :--- | | Balance, Jan 1, 2023 | $94,807 | | Actual product refunds, replacements, etc. | $(50,707) | | Gift card issuances | $(26,685) | | Reserve adjustment | $8,515 | | **Balance, Sep 30, 2023** | **$25,930** | Net Sales Disaggregation - Nine Months Ended Sep 30, 2023 (in thousands) | Category | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **By Channel** | | | | | Wholesale | $486,066 | $539,014 | (9.8)% | | Direct-to-consumer | $652,854 | $608,212 | 7.3% | | **By Product** | | | | | Coolers & Equipment | $432,511 | $482,030 | (10.3)% | | Drinkware | $676,978 | $639,055 | 6.0% | | **By Geography** | | | | | United States | $964,569 | $1,005,238 | (4.0)% | | International | $174,351 | $141,988 | 22.8% | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q3 2023 performance shows flat net sales due to a product recall, offset by DTC growth and improved gross margin - A voluntary recall of certain cooler and gear case products initiated in Q1 2023 resulted in a **$24.5 million reduction to net sales** and a net unfavorable impact of **$17.4 million to gross profit** for the first nine months of 2023[83](index=83&type=chunk)[87](index=87&type=chunk)[105](index=105&type=chunk) Q3 2023 vs. Q3 2022 Performance Summary (in thousands) | Metric | Q3 2023 | Q3 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $433,561 | $433,556 | $5 | 0.0% | | Gross profit | $251,251 | $222,407 | $28,844 | 13.0% | | Gross margin | 58.0% | 51.3% | +670 bps | - | | SG&A expenses | $189,374 | $153,940 | $35,434 | 23.0% | - In Q3 2023, sales performance varied significantly by channel, with **DTC channel sales increasing 14%** to $259.5 million while **Wholesale channel sales decreased 16%** to $174.1 million[96](index=96&type=chunk) - The **670 basis point increase in Q3 gross margin** was primarily driven by lower inbound freight rates (+480 bps), lower product costs (+150 bps), and a favorable channel mix shift to DTC (+110 bps)[97](index=97&type=chunk)[101](index=101&type=chunk) - The company amended its Credit Facility in June 2023, extending the maturity to 2028 and increasing the revolving credit facility from **$150.0 million to $300.0 million**[82](index=82&type=chunk)[115](index=115&type=chunk) - Cash flow from operations for the first nine months of 2023 was **$114.8 million**, a significant improvement from a cash use of $(72.2) million in the prior year period, primarily due to a decrease in inventory[120](index=120&type=chunk)[121](index=121&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposures and management strategies remain materially unchanged from the prior fiscal year-end - There have been no material changes to market risk exposures or management of market risk from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[128](index=128&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[130](index=130&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[131](index=131&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material adverse effect on the company's financial condition - The company does not expect existing claims and legal proceedings to have a material adverse effect on its financial position, results of operations, or cash flows[136](index=136&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Key business risks include brand dependency, product recalls, manufacturer concentration, and adverse economic conditions - The business is highly dependent on maintaining its **premium brand image** to attract customers and maintain demand[139](index=139&type=chunk) - The company faces significant risk from product recalls, as evidenced by the **voluntary recall of certain soft coolers and gear cases in 2023**, which has subjected the company to substantial costs and potential brand harm[193](index=193&type=chunk)[194](index=194&type=chunk) - There is a significant concentration risk with third-party manufacturers, as the two largest manufacturers accounted for **71% of hard coolers, 92% of soft coolers, and 70% of Drinkware production volume** in the first nine months of 2023[164](index=164&type=chunk) - Adverse economic conditions, such as inflation and rising interest rates, could **reduce consumer discretionary spending** on premium products, which could materially harm sales and profitability[201](index=201&type=chunk) - The company's reliance on information technology systems exposes it to risks of failure, interruption, or cyberattacks, which could disrupt operations and damage customer relationships[206](index=206&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading plans during the third quarter - During the three months ended September 30, 2023, no officers or directors adopted or terminated any Rule 10b5-1 trading plans[242](index=242&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including required CEO and CFO certifications under the Sarbanes-Oxley Act - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[242](index=242&type=chunk)

Q2 2023 Financial Results - Adjusted net sales reached $427 million, reflecting a 2% year-over-year growth[37] - Coolers & Equipment adjusted net sales were $181 million, a decrease of 6%[37] - Drinkware adjusted net sales were $233 million, an increase of 8%[37] - Adjusted gross profit increased to $234 million with a margin of 54.9%[118] - Adjusted operating income was $67 million, representing a 15.7% operating margin[37] - Adjusted income per diluted share was $0.57[37] International Expansion - International adjusted net sales grew 19% year-over-year during Q2 2023, accounting for 13% of total adjusted net sales[13] Full Year 2023 Outlook - Adjusted net sales are projected to be between $1.699 billion and $1.715 billion, indicating a 4% to 5% year-over-year increase[131] - Adjusted gross margin is expected to be in the range of 55.5% to 56.0%[131] - Adjusted operating margin is anticipated to be between 15.5% and 16.0%[131]

Financial Data and Key Metrics Changes - Adjusted sales for Q2 2023 increased by 2% to $427 million compared to $420 million in the prior year period, with a 900 basis point impact from the stop sale of recalled products [14][21][24] - Gross margin improved by 270 basis points to approach 55%, driven by lower inbound freight costs and product costs [25][48] - SG&A expenses increased by 15% to $167 million, representing 39.1% of sales, compared to 34.6% in the same period last year [45][75] - Net income decreased by 9% to $50 million, or $0.57 per diluted share, compared to $0.63 in the prior year period [75] Business Line Data and Key Metrics Changes - Drinkware sales grew by 8% to $233 million, supported by strong demand in the DTC channel and product innovation [24][73] - Coolers & Equipment sales decreased by 6% to $181 million, with strength in hard coolers partially offsetting the decline in soft coolers [43][72] - Corporate sales remained roughly flat compared to a strong prior year, but total customer count continued to grow [4][24] Market Data and Key Metrics Changes - International sales grew nearly 20% to reach 13.4% of total sales, with strong growth in Europe and Australia, while Canada experienced slower growth [64][98] - DTC sales increased by 4% to $235 million, representing 55% of total sales, led by growth in Amazon [42][61] Company Strategy and Development Direction - The company is focused on expanding its product portfolio, particularly in Drinkware and Coolers, with new product launches planned for Q4 2023 and early 2024 [11][12][31] - YETI aims to enhance brand awareness and customer engagement through targeted marketing and partnerships, including collaborations with culinary influencers [26][56] - The company is investing in data analytics and international marketing to drive growth in global markets [13][36] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the fourth quarter, expecting significant acceleration in sales across product categories and channels [7][47] - The company anticipates a return to double-digit growth in Q4, following a low single-digit decline in Q3 due to the timing of product launches [47][101] - Management highlighted the importance of maintaining operating margins and driving future growth through strategic investments [8][78] Other Important Information - The company ended Q2 with $223 million in cash, a significant increase from $92 million in the prior year [15][55] - Inventory decreased by 34% year-over-year to $322 million, marking a cumulative reduction of over $168 million from peak levels in Q2 2022 [15][48] Q&A Session Summary Question: What is the company's perspective on building product breadth with existing customers versus acquiring new customers? - The company emphasizes the importance of both acquiring new customers and retaining existing ones, focusing on expanding product offerings and enhancing customer engagement [81][83] Question: Can you provide insights on the Drinkware segment's growth and underlying demand? - Management expressed confidence in the Drinkware segment, noting strong receptivity to innovation and new product launches, despite some inventory conservatism among retailers [90][92] Question: What are the expectations for international growth in the second half of the year? - International sales grew 19% in Q2, with expectations for continued growth in Europe and Australia, while Canada is anticipated to recover from recent challenges [92] Question: How does the company plan to leverage its financial strength moving forward? - The company plans to prioritize investments that support sustained growth and innovation, leveraging its strong cash position to drive future opportunities [114][115]

T First Quarter 2023 Highlights ® Visti N YETI YETI t ris ( alli Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business , legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward Looking Statements This presentation, as well as other written or oral communications made from time to time by us, may contain certain "forward-l ...

Yeti Holdings, Inc. (NYSE:YETI) Q1 2023 Earnings Conference Call May 11, 2023 8:00 AM ET Company Participants Thomas Shaw - VP, IR Matthew Reintjes - President, CEO & Director Michael McMullen - SVP, Principal Accounting Officer, Treasurer & CFO Conference Call Participants Sharon Zackfia - William Blair & Company Joseph Altobello - Raymond James & Associates Peter Benedict - Robert W. Baird & Co. Peter Grom - UBS John Kernan - TD Cowen Xian Siew Hew Sam - BNP Paribas Exane Robert Ohmes - Bank of America Me ...

Safety and Compliance - In January 2023, the company notified the CPSC of a potential safety concern regarding certain products and initiated a global stop sale, with voluntary recalls proposed in February 2023[37]. - A global stop sale and proposed voluntary recall of certain products may result in substantial costs and negatively affect the company's reputation and operations[131]. - The company incurred $97,176 in product recalls, impacting overall financial performance significantly[297]. - The company faces risks related to product liability and recalls, which could lead to financial losses and damage to its reputation[130]. Sales and Distribution Channels - The direct-to-consumer (DTC) channel accounted for 58% of net sales in 2022, while the wholesale channel accounted for 42%[41]. - The company sold through approximately 2,900 independent retail partners as of December 31, 2022, with the largest single wholesale customer representing about 11% of gross sales[42]. - A significant portion of sales, approximately 12%, comes from independent retail partners, with one national partner accounting for about 10% and 11% of gross sales in 2021 and 2022 respectively[113]. - The DTC e-commerce channel represented 58% of net sales in 2022, with sales through the Amazon Marketplace contributing approximately 13%[116]. Financial Performance - Consolidated net sales for the fiscal year ended December 31, 2022, were $1.6 billion[273]. - Net sales for the fiscal year ended December 31, 2022, were $1,595,222, an increase of 13.0% from $1,410,989 in the previous year[290]. - Gross profit decreased to $763,401 from $816,113, reflecting a gross margin of 47.8% compared to 57.8% in the prior year[290]. - Operating income fell to $126,361, down 54.1% from $274,938, indicating a significant decline in profitability[290]. - Net income for the year was $89,693, a decrease of 57.9% from $212,602 in the previous year[290]. - The company reported a total comprehensive income of $88,920, down from $213,342, primarily due to lower net income and foreign currency translation adjustments[292]. - Cash flows from operating activities were $100,894, a decrease from $146,520 in the prior year, reflecting challenges in cash generation[297]. - The ending cash balance was $234,741, down from $312,189, indicating a decrease in liquidity[297]. International Expansion - The company is expanding internationally, focusing on brand awareness and wholesale expansion in markets such as Canada, Australia, New Zealand, Japan, and Europe[45]. - The company is expanding its operations into international markets such as Canada, Australia, Europe, and Japan, but may encounter unique challenges in these regions[87]. - International sales accounted for 11% of the company's consolidated net sales in 2022, indicating limited exposure to foreign currency fluctuations[260]. - International expansion is a key long-term strategy, but it involves significant costs and risks, including compliance with foreign laws and potential lower margins in some regions[125]. Supply Chain and Production - The company relies on third-party contract manufacturers for product sourcing, which poses risks related to production capacity and quality control[96]. - The company has experienced difficulties in accurately forecasting demand due to global supply chain constraints, which could adversely impact profitability and operational results[83]. - The company is in the process of re-engineering its supply chain management to support global expansion, which requires significant investment and could lead to operational disruptions[103]. - The company's two largest manufacturers accounted for approximately 72%, 85%, 80%, 86%, 89%, and 90% of production volume for various product categories in 2022[102]. Marketing and Brand Strategy - The company has made significant investments in marketing and customer acquisition, including partnerships and community events, but faces challenges in cost-effective customer acquisition due to rising product costs and ineffective marketing strategies[77]. - The company emphasizes the importance of maintaining and strengthening its brand to attract new customers and sustain demand, with a focus on product quality, design, and customer experience[76]. - The company competes in a fragmented outdoor and recreation market, facing competition from established brands and new entrants, with a focus on product quality and brand recognition[57][58]. Operational Risks - The company relies heavily on information technology systems, and any failure or disruption could negatively impact operations and financial results[143]. - The company faces risks related to cybersecurity threats, which could result in data breaches and harm its reputation and financial condition[149]. - The company may incur additional costs and operational challenges in expanding its e-commerce platform internationally, affecting overall investment returns[118]. - The company is currently upgrading its SAP enterprise resource planning system, which involves risks that could disrupt operations[143]. Economic and Regulatory Environment - Economic conditions, including inflation and consumer confidence, could negatively impact sales through retail partners and overall financial performance[121]. - The expiration of the Global System of Preferences (GSP) program on December 31, 2020, has negatively impacted gross margins due to additional duties[108]. - Increased demand, supply constraints, and inflation have led to higher production costs, prompting the company to implement price increases for certain products in 2022[104]. - Changes in tax laws, such as the Inflation Reduction Act, could adversely affect the company's effective tax rate and profitability[158]. Human Resources and Diversity - The company employs approximately 922 people worldwide, with about 90% located in the United States, and has no labor-related work stoppages[66]. - The company emphasizes diversity, equity, and inclusion (DE&I) initiatives, supported by a DE&I Council and employee-led affinity groups[67]. Financial Position and Liabilities - As of December 31, 2022, the company had $90.0 million in principal amount of indebtedness outstanding under its Credit Facility[152]. - The Credit Facility imposes restrictions on the payment of dividends and distributions, limiting the company's ability to invest in ongoing business needs[153]. - Total current assets decreased from $770.2 million as of January 1, 2022, to $718.9 million as of December 31, 2022[288]. - Total liabilities decreased from $578.5 million as of January 1, 2022, to $550.3 million as of December 31, 2022[288].

YETI Holdings, Inc. (NYSE:YETI) Q3 2022 Earnings Conference Call November 10, 2022 8:00 AM ET Company Participants Tom Shaw - Vice President, Investor Relations Matt Reintjes - President and Chief Executive Officer, Director Mike McMullen - Interim Chief Financial Officer Conference Call Participants Robby Ohmes - BofA Global Research Peter Benedict - Robert W. Baird Randy Konik - Jefferies Sharon Zackfia - William Blair Joe Altobello - Raymond James Brian Harbour - Morgan Stanley John Kernan - Cowen Kaumil ...

YETI Holdings, Inc. (NYSE:YETI) Q2 2022 Earnings Conference Call August 4, 2022 8:00 AM ET Company Participants Thomas Shaw - VP, IR Matthew Reintjes - President and CEO Paul Carbone - SVP and CFO Conference Call Participants Sharon Zackfia - William Blair Camilo Lyon - BTIG Brooke Roach - Goldman Sachs Brian Harbour - Morgan Stanley Kaumil Gajrawala - Credit Suisse Robby Ohmes - Bank of America Xian Siew - Exane BNP Paribas Matt Egger - Piper Sandler Operator Good morning and welcome to 2Q FY 2022 Earnings ...