YETI(US:YETI)2025-11-06 11:03Sales Performance - Net sales increased 2% to $487.8 million in Q3 2025, compared to $478.4 million in Q3 2024[4] - International net sales grew 14% to $100.4 million, while US sales decreased 1% to $387.3 million[6] - Direct-to-consumer channel sales increased 3% to $288.7 million, driven by growth in Amazon Marketplace and YETI retail stores[4] - Total net sales for the nine months ended September 27, 2025, were $1,284,786, slightly up from $1,283,333 in the same period of 2024[49] - Sales in the United States accounted for $1,026,376, while international sales were $258,410 for the nine months ended September 27, 2025[62] - The Coolers & Equipment category generated $556,175 in sales, up from $518,443 in the prior year, marking an increase of 7.3%[62] - The Drinkware category saw a decline in sales to $705,830 from $736,084, representing a decrease of 4.1%[62] - The Other category's sales decreased to $22,781 from $28,806, a decline of 20.9%[62] - The overall adjusted net sales remained stable at $1,284,786, unchanged from the previous year[62] Profitability - Gross profit decreased 2% to $272.5 million, with a gross margin of 55.9%, impacted by higher tariff costs[7] - Net income decreased 30% to $39.4 million, or 8.1% of sales, compared to $56.3 million, or 11.8% of sales in the prior year[13] - Adjusted net income decreased 18% to $49.6 million, or 10.2% of adjusted sales[14] - Operating income for the three months ended September 27, 2025, was $54.4 million, a decrease from $69.6 million in the same period in 2024[43] - Adjusted operating income for the nine months ended September 27, 2025, was $175,011, down from $198,765 in the prior year, a decrease of 11.9%[54] - The gross margin for the nine months ended September 27, 2025, was 57.0%, compared to 57.4% for the same period in 2024[49] Expenses - SG&A expenses increased 5% to $218.2 million, representing 44.7% of sales, due to growth investments and higher non-cash stock-based compensation[9] - Selling, general, and administrative expenses increased to $593,765 for the nine months ended September 27, 2025, from $573,974 in the prior year, marking a rise of 3.4%[49] Cash Flow and Capital Management - Free cash flow is projected to be approximately $200 million, an increase from the previous outlook of $150 million to $200 million[33] - Net cash provided by operating activities increased significantly to $81,839, compared to $35,806 in the prior year, reflecting a growth of 128.5%[47] - Free cash flow improved to $50,067 for the nine months ended September 27, 2025, compared to $4,465 in the previous year, indicating a substantial increase[65] - The company repurchased common stock amounting to $172,908 during the nine months ended September 27, 2025, compared to $100,000 in the same period of 2024[47] - Cash at the end of the period decreased to $164,483 from $280,464 a year earlier, reflecting a decline of 41.3%[47] - YETI plans to increase its share repurchase target for 2025 to $300 million, up from the previous target of $200 million[29] Future Outlook - The company expects long-term topline growth in the range of high-single-digits to low-double-digits beyond 2025[2] - Adjusted sales are expected to increase by 1% to 2%, reflecting a 300 basis point unfavorable impact from supply chain transformation[33] - Adjusted operating income as a percentage of adjusted sales is projected to be between 14.0% and 14.5%, with a 230 basis point unfavorable impact from higher tariff costs[33] - Adjusted net income per diluted share is estimated to be between $2.38 and $2.49, including a $0.40 net unfavorable impact from higher tariff costs[33] - Capital expenditures are expected to be approximately $50 million, primarily for technology and new product innovation[33] - YETI's supply chain transformation is on track to diversify its manufacturing footprint by year-end, enhancing operational resilience[30]