Core Insights - YETI Holdings, Inc. shares are currently trading lower despite an upgrade from BofA Securities analyst Alexander Perry, who raised the price target to $55 from $46 and upgraded the rating to Buy from Neutral [1] Financial Performance - YETI reported adjusted EPS of $0.70, reflecting a 23% year-over-year increase, which surpassed estimates [2] - The company has revised its FY24 adjusted sales growth projection to 8% – 10%, up from the previous range of 7% – 9%, and adjusted EPS guidance to $2.61 – $2.65, compared to the prior estimate of $2.49 – $2.62 [2] Analyst Expectations - The bullish outlook from the analyst is driven by anticipated gains from NFL drinkware, cooler rollouts, a strong third-quarter performance during Amazon Prime Day, new product launches, and solid long-term growth prospects in markets such as Japan, the U.K., and Germany [2] - The FY24 EPS estimate has been raised to $2.65 from $2.60, with expectations that the NFL deal will enhance revenue in 2025 [3] Strategic Initiatives - The analyst has also increased YETI's EPS estimates for 2025-26, highlighting the company's long-term strategy that includes diversification through new product lines such as backpacks and cookware, deeper expansion into European and Asian markets, potential mergers and acquisitions for technology and talent, and share repurchases planned for 2024 [3]

Core Insights - Yeti reported quarterly profit and sales that exceeded forecasts due to strong demand for its coolers [1] - The company raised its full-year guidance for adjusted earnings per share and revenue [1] Financial Performance - Yeti posted second-quarter adjusted earnings per share (EPS) of $0.70, with revenue rising 15% year-over-year to $463.5 million, both surpassing analyst estimates [2] - Sales in the Coolers & Equipment segment surged 31% to $205.9 million, driven by demand for soft coolers and bags [2] - The Drinkware division saw a 6% increase in sales to $246.5 million, attributed to new products and colors [2] Market Position and Demand - CEO Matt Reintjes indicated that the company is well-positioned to meet the growing demand for coolers, which increased throughout the quarter [3] - International sales experienced a significant increase of 35%, while U.S. sales rose by 12% [3] Updated Guidance - Yeti now expects full-year adjusted EPS to be between $2.61 and $2.65, an increase from the previous forecast of $2.49 to $2.62 [4] - The company anticipates adjusted sales growth of 8% to 10%, compared to the earlier outlook of 7% to 9% [4] - Following the announcement, Yeti's shares surged 17% to $43.42, although they remain down 16% year-to-date [4]

i ® Second Quarter 2024 Highlights | --- | --- | --- | --- | --- | --- | |--------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | ■ YETI | ■ | | | | | | | | | | | | 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 S ...

YETI Holdings, Inc. (NYSE:YETI) Q2 2024 Earnings Conference Call August 8, 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 Brooke Roach - Goldman Sachs Randy Konik - Jefferies Peter Benedict - Robert Baird Operator Good morning ladies and gentlemen and welcome to the YETI Holdings 2Q 2024 Earnings Conference ...

Yeti (YETI) reported $463.5 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 15.1%. EPS of $0.70 for the same period compares to $0.57 a year ago. The reported revenue represents a surprise of +1.49% over the Zacks Consensus Estimate of $456.69 million. With the consensus EPS estimate being $0.64, the EPS surprise was +9.38%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...

Yeti (YETI) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 9.38%. A quarter ago, it was expected that this maker of outdoor and recreational products would post earnings of $0.25 per share when it actually produced earnings of $0.34, delivering a surprise of 36%. Over the last four q ...

Financial Performance - Net sales increased 15% to $463.5 million, compared to $402.6 million in the same period last year, with adjusted net sales increasing 9%[3] - Gross margin expanded 360 basis points to 57.0%, while adjusted gross margin expanded 280 basis points to 57.7%[2] - Operating income increased 34% to $67.4 million, representing 14.5% of sales, with adjusted operating income increasing 19% to $80.0 million, or 17.3% of adjusted sales[6][7] - EPS increased 34% to $0.59, with adjusted EPS increasing 23% to $0.70[7] - Net income for the three months ended June 29, 2024, was $50.4 million, compared to $38.1 million for the same period in 2023, representing a year-over-year increase of 32.5%[28] - The company reported a diluted net income per share of $0.59 for the three months ended June 29, 2024, compared to $0.44 for the same period in 2023, showing improved profitability[28] - Net income for the quarter was $66,251, up from $48,635, representing a growth of 36.5% year-over-year[32] Sales Channels - Direct-to-consumer channel sales increased 11% to $250.4 million, while wholesale channel sales increased 21% to $213.1 million[4] - The United States accounted for $386,886 of total net sales in the three months ended June 29, 2024, up from $345,888 in the prior year, a growth of 11.9%[38] - Direct-to-consumer sales accounted for $250,370 of net sales in the three months ended June 29, 2024, compared to $226,388 in the prior year, a growth of 10.6%[38] - Wholesale channel sales were $213,129 for the three months ended June 29, 2024, compared to $176,175 in the prior year, reflecting a 20.9% increase[38] - The company anticipates continued growth in both direct-to-consumer and wholesale channels, supported by new product launches and market expansion strategies[36] International Sales - International net sales increased 35%, with a third consecutive quarter of over 30% growth in the international business[2] Financial Outlook - The company raised its full-year 2024 sales outlook to an increase of 8% to 10%[15] - Adjusted net sales for Fiscal 2023 were $1,680,413, with a projected range for Fiscal 2024 between $1,814,846 and $1,848,454[40] - Adjusted operating income for Fiscal 2023 was $262,785, expected to rise to between $299,450 and $304,995 in Fiscal 2024, representing an increase in margin from 15.6% to 16.5%[40] - Adjusted net income for Fiscal 2023 was $196,987, with a forecast for Fiscal 2024 between $223,989 and $228,138, increasing the margin from 11.7% to 12.3%[40] - Adjusted net income per diluted share for Fiscal 2023 was $2.25, projected to increase to between $2.61 and $2.65 in Fiscal 2024[40] Expenses and Investments - Selling, general, and administrative (SG&A) expenses for the three months ended June 29, 2024, were $196.9 million, compared to $164.5 million in the same period last year, reflecting increased investment in growth initiatives[28] - Capital expenditures are expected to be between $50 million and $60 million, primarily for investments in technology and new product innovation[15] Debt and Equity - Total debt decreased to $80.2 million, with mandatory debt payments of $1.1 million made during the quarter[14] - Stockholders' equity decreased to $705,860 from $723,610, a decline of approximately 2.4%[30] - Total current liabilities decreased to $351,860 from $398,353, a reduction of about 11.7%[30] Inventory and Cash Flow - Inventory increased 17% to $378.3 million, driven by the re-stock of soft coolers and bags inventory[14] - Cash and cash equivalents at the end of the period were $212,937, down from $223,136, a decrease of 4.9%[32] - The company reported a net cash used in operating activities of $(47,714) compared to $28,781 in the previous year[32] Product Recalls - For the three months ended July 1, 2023, net sales decreased by $24.5 million due to product recalls, with $8.1 million attributed to direct-to-consumer (DTC) and $16.4 million to wholesale channels[16] - The total impact of product recalls on income before income taxes was a decrease of $8.7 million for the three months ended July 1, 2023[16] - The company reported a product recall adjustment of $21,700 impacting net sales for the twelve months ended December 30, 2023[41] Share Repurchase Program - The company initiated a share repurchase program of up to $300 million, with $100 million executed through an accelerated share repurchase agreement, resulting in the repurchase of approximately 2.6 million shares[18] - As of June 29, 2024, $200 million remained available under the share repurchase program, indicating ongoing commitment to returning value to shareholders[18] Operational Efficiency - The company is focused on strategic organizational realignments and business optimization to enhance operational efficiency[41]

Core Insights - Wall Street analysts forecast Yeti (YETI) will report quarterly earnings of $0.64 per share, reflecting a year-over-year increase of 12.3% [1] - Anticipated revenues are projected to be $456.69 million, showing a 13.5% increase compared to the same quarter last year [1] Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 1%, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to stock performance [3] Revenue Estimates by Category - The consensus estimate for 'Net Sales by Category- Coolers & Equipment' is $193.63 million, representing a year-over-year change of +23.6% [4] - 'Net Sales by Category- Drinkware' is expected to reach $252.21 million, with a year-over-year change of +8.1% [5] - 'Net Sales by Category- Other' is projected at $13.82 million, indicating a +10.2% change year over year [5] Revenue Estimates by Channel - 'Net Sales by Channel- Wholesale' is forecasted to be $205.99 million, reflecting a year-over-year change of +16.9% [5] - 'Net Sales by Channel- Direct-to-consumer' is estimated at $252.14 million, showing an +11.4% change from the prior-year quarter [6] Geographic Revenue Estimates - Estimated 'Geographic Revenues- United States' is $384.35 million, indicating a +11.1% change from the year-ago quarter [6] - 'Geographic Revenues- International' is projected to reach $74.29 million, reflecting a significant +31.1% change year over year [6] Stock Performance - Yeti shares have increased by +1.3% in the past month, contrasting with the Zacks S&P 500 composite's -6.7% performance [7] - YETI holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near term [7]

Core Viewpoint - The recent upgrade of Yeti to a Zacks Rank 1 (Strong Buy) indicates a positive outlook on its earnings, suggesting potential upward movement in its stock price [2][7][8]. Earnings Outlook - For the fiscal year ending December 2024, Yeti is expected to earn $2.60 per share, reflecting a 15.6% increase from the previous year [4]. - Over the past three months, the Zacks Consensus Estimate for Yeti has risen by 4.1%, indicating a trend of increasing earnings estimates [4]. Zacks Rating System - The Zacks rating system maintains a balanced approach, with only the top 5% of stocks receiving a 'Strong Buy' rating and the next 15% receiving a 'Buy' rating, highlighting the significance of earnings estimate revisions [5]. - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [12]. Impact of Earnings Estimates - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [9][11]. - Rising earnings estimates for Yeti suggest an improvement in the company's underlying business, which could lead to increased investor interest and stock price appreciation [10].

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