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 ...

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].

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]

YETI Holdings, Inc. (NYSE:YETI) beat Q1 2024 estimates and raised their full year guidance. However, the stock is still down over 20% YTD while the S&P 500 is up over 14%. Yeti continues to look attractive to me as the company has released some interesting, new products over the last few months and continues to see double-digit revenue growth internationally. Let's dig in the quarter and review the financial results as well as the developments within the company over the last several months. On the Q1 earni ...

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 ...