YETI(US:YETI)2025-02-13 11:11Financial Performance - Fourth quarter net sales increased 5% to $546.5 million; adjusted net sales increased 7% to $555.4 million[6][7] - Full year net sales increased 10% to $1,829.9 million; adjusted net sales increased 9% to $1,838.7 million[16] - Fourth quarter EPS decreased 30% to $0.63; adjusted EPS increased 11% to $1.00[14][15] - Full year EPS increased 6% to $2.05; adjusted EPS increased 21% to $2.73[24] - International net sales increased 27% to $108.9 million in the fourth quarter; U.S. net sales increased 1% to $437.6 million[8] - Net sales for the three months ended December 28, 2024, increased to $546.54 million, up 5.2% from $519.79 million for the same period in 2023[47] - Adjusted net sales for the three months ended December 28, 2024, were $555.37 million, an increase from $516.97 million in the same period of 2023[53] - Direct-to-consumer sales for the three months ended December 28, 2024, were $368,588, up 6.9% from $344,859 in the same period last year[62] Profitability Metrics - Gross margin expanded 120 basis points to 58.1% for the full year; adjusted gross margin expanded 170 basis points to 58.6%[19][20] - The company reported a gross margin of 59.7% for the three months ended December 28, 2024, slightly down from 60.6% in the prior year[53] - Operating income for the three months ended December 28, 2024, was $82,504, a decrease of 15.9% compared to $98,152 for the same period in 2023[57] - Adjusted operating income for the twelve months ended December 28, 2024, increased to $309,371, up 17.6% from $262,785 in 2023[57] - The percentage of operating income as a percentage of net sales for the three months ended December 28, 2024, was 15.1%, down from 18.9% in the same period last year[57] Cash Flow and Capital Management - Operating cash flow for the full year was $261.4 million; free cash flow was $219.6 million[4] - The company plans to generate approximately $200 million in free cash flow for Fiscal 2025[34] - Free cash flow for the twelve months ended December 28, 2024, was $219,554, down from $235,270 in the previous year[66] Shareholder Returns - The company announced a $350 million increase to its share repurchase program and completed $200 million in share buybacks during the year[1][25] - YETI's Board of Directors approved a $350 million increase to the Share Repurchase Program, with $450 million remaining available[33] - During Fiscal 2024, YETI repurchased approximately 5.1 million shares of its common stock under accelerated share repurchase agreements totaling $200 million[32] Future Outlook - For Fiscal 2025, YETI expects adjusted sales to increase between 5% and 7%, reflecting an FX headwind of approximately 100 basis points[28] - Adjusted operating income is projected to increase between 5.5% and 7.5%, with an FX headwind of approximately 350 basis points[28] - Adjusted net income per diluted share is anticipated to be between $2.90 and $2.95, reflecting a 6% to 8% increase, impacted by an FX headwind of approximately $0.10[28] - The effective tax rate for Fiscal 2025 is expected to be approximately 24.5%, consistent with the prior year[28] Acquisitions and Investments - The company acquired Mystery Ranch and technology for a unique powered cooler system to support product innovation[4][25] - YETI acquired technology and intellectual property for a powered cooler platform for $32.5 million[34] - Capital expenditures are expected to be between $60 million and $70 million, primarily for technology and new product innovation[34] Balance Sheet Highlights - Total current assets decreased to $826.77 million as of December 28, 2024, from $914.41 million a year earlier[49] - Cash and cash equivalents at the end of the period were $358.80 million, down from $438.96 million at the end of the previous year[51] - Total liabilities decreased to $546.01 million as of December 28, 2024, from $573.58 million in 2023[49] - Stockholders' equity increased to $740.11 million as of December 28, 2024, compared to $723.61 million in the previous year[49] Product Recall Adjustments - The reserve for estimated product recall expenses was adjusted by $9.9 million due to higher than anticipated consumer recall participation rates[30] - The company experienced product recall adjustments totaling $9,938 for the three months ended December 28, 2024[62] Net Income Analysis - Net income for the twelve months ended December 28, 2024, was $175.69 million, compared to $169.89 million in 2023, reflecting a growth of 3.4%[51] - The company reported a net income of $53,154 for the three months ended December 28, 2024, a decrease of 32.4% from $78,593 in the prior year[57] - Adjusted net income for the twelve months ended December 28, 2024, was $233,962, an increase of 18.8% compared to $196,987 in 2023[57] - The adjusted net income per diluted share for the three months ended December 28, 2024, was $1.00, compared to $0.90 in the same period last year[57]