YETI Holdings, Inc. (YETI) is likely to benefit from product innovation, expansion efforts and strategic partnerships. A focus on supply-chain diversification bodes well. However, the macroeconomic environment poses concerns. Factors Driving the YETI Stock Innovation Driving Growth: YETI's continuous focus on innovation has been a catalyst for its success. In the second quarter, the company introduced new cooler products, including the Roadie 15, which has seen strong early demand. YETI's innovative approac ...

Group 1 - The S&P 500 index has shown resilience, achieving nearly a 20% gain for the year despite recent concerns [1] - There is a recommendation to rotate portfolios towards lesser-known value stocks that have experienced declines this year [1] - Gary Alexander, with extensive experience in technology and startups, contributes insights on industry trends and has been active on Seeking Alpha since 2017 [1]

Core Viewpoint - YETI Holdings Inc. reported strong earnings, exceeding expectations with an EPS of 70 cents and revenue of $463.50 million, showcasing significant year-over-year growth in both revenue and EPS [1][2]. Financial Performance - Revenue increased by 13% year-over-year, while EPS rose by 37% year-over-year [2]. - The company raised its forward guidance, expecting sales growth of 8% to 10% for the current quarter, up from a previous estimate of 7% to 9% [2]. - Adjusted net income is projected to be between $2.61 and $2.65 per share, higher than the prior guidance of $2.49 to $2.62 [2]. Market Reaction - Following the earnings report, YETI's stock price surged approximately 17% to around $43.50 per share, although it remains down 19% year-to-date [4]. - The stock's price target is set at $46.29, indicating a potential upside of 11.24% from its recent closing price [10]. Consumer Insights - YETI's products are positioned in the discretionary spending category, appealing to consumers with higher disposable incomes, which aligns with the current bifurcated economy [5]. - The company has launched products targeting the back-to-school market and capitalized on seasonal events like camping season and Father's Day [6]. Strategic Partnerships - YETI has entered a licensing agreement with the NFL and partnered with the Dallas Cowboys, enhancing its brand visibility during tailgate season [7]. Competitive Landscape - While YETI has performed well, other premium brands like Lululemon have faced challenges, indicating differing paths for these companies [8]. - YETI's international cooler sales increased by 35%, surpassing U.S. sales growth by 12%, suggesting strong global demand [9]. Valuation Metrics - YETI's forward P/E ratio is around 17x, below the consumer discretionary sector average of 22x, suggesting the stock may be undervalued [11]. - Analysts project earnings growth of around 13%, supporting the argument for a fairly valued stock [10].

Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Yeti (YETI) and Sportradar Group AG (SRAD) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyon ...

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 ...

Financial Data and Key Metrics Changes - YETI reported a 9% sales growth in Q2 2024, reaching $464 million, driven by coolers and equipment as well as international sales [8][39] - Gross profit increased 14% to $268 million, with gross margin expanding to 57.7% from 54.9% year-over-year [47] - Operating income rose 19% to $80 million, representing 17.3% of sales, while net income increased 20% to $60 million, or $0.70 per diluted share [48] Business Line Data and Key Metrics Changes - Coolers and equipment sales increased 14% to $206 million, with strong performance in both soft and hard coolers [41] - Drinkware sales grew 6% to $247 million, supported by new product launches and strong consumer demand [43] - Direct-to-consumer sales grew 7% to $250 million, with a notable performance from the Amazon marketplace [46] Market Data and Key Metrics Changes - International revenues surged 34% to $77 million, now accounting for 17% of total business, up from 13% last year [30] - The Australian market outperformed expectations, while Europe showed strong gains across channels [30][32] - The company anticipates international growth to approach 30% for the year, with domestic growth in the mid-single-digit range [50] Company Strategy and Development Direction - YETI is focused on expanding its global reach and diversifying its supply chain, with plans to reduce reliance on China for Drinkware production [11][12] - The company aims to enhance customer engagement through product innovation and strategic partnerships, including a new licensing agreement with the NFL [19][18] - YETI is committed to maintaining its brand heritage while expanding into new markets and product categories, such as cookware [25][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, citing strong product momentum and effective supply chain management [9][10] - The company remains cautious about macroeconomic and geopolitical uncertainties but is focused on controlling internal factors [9] - YETI raised its full-year sales growth outlook to between 8% and 10%, reflecting confidence in its product portfolio and market strategy [50] Other Important Information - The company is investing in leadership roles to manage growth in Asia and Europe, enhancing its global logistics and operational capabilities [10][31] - YETI's gross margin target for 2024 has been increased to approximately 58.5%, up from a previous target of 58% [51] - The company plans to introduce new product lines, including cookware, to further diversify its offerings [25][24] Q&A Session Summary Question: Update on cooler demand trends and confidence for the holiday season - Management noted positive trends in cooler sales, with strong performance in both soft and hard coolers, and expressed confidence in sustaining momentum into the holiday season [57][59] Question: Insights on gross margin opportunities - Management highlighted that gross margins are expected to align more closely with the prior year in the second half, but opportunities for improvement remain [61][62] Question: Sell-through performance and key moments - Positive sell-through was reported for coolers, with strong demand during key events like Mother's Day and Father's Day [66][67] Question: Competitive dynamics in Drinkware - Management expressed confidence in YETI's product portfolio and brand strength despite increased competition in the Drinkware category [83][84] Question: Concerns regarding new entrants in the cooler market - Management emphasized YETI's established leadership position and commitment to product quality and consumer demand [87][90] Question: Significance of the NFL licensing agreement - Management refrained from quantifying the impact of the NFL license but emphasized the importance of building broad relationships through such partnerships [93][94]

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 ...