YETI(YETI) - 2025 Q4 - Annual Results

Sales Performance - Fourth quarter net sales increased 7% to $583.7 million, with adjusted net sales rising 5%[4] - International net sales grew 25% during the fourth quarter, contributing significantly to overall sales growth[3] - Full year net sales increased 2% to $1,868.5 million, driven by a 16% increase in international net sales[17] - YETI reported net sales of $583.7 million for Q4 2025, an increase from $546.5 million in Q4 2024, and total net sales for Fiscal 2025 reached $1.87 billion, up from $1.83 billion in Fiscal 2024[47] - For the three months ended January 3, 2026, net sales reached $583.7 million, an increase from $546.5 million for the same period in 2024, representing a growth of 6.5%[65] - Direct-to-consumer sales for the three months ended January 3, 2026, were $394.3 million, up from $368.6 million in the same period in 2024, indicating a growth of 6.9%[65] - Adjusted net sales for the twelve months ended January 3, 2026, were $1.87 billion, compared to $1.84 billion in the previous year, representing an increase of 2.1%[66] Profitability - Gross profit for the fourth quarter increased 4% to $340.9 million, representing 58.4% of sales, despite a 310 basis point unfavorable impact from higher tariff costs[7] - Net income for the fourth quarter increased 10% to $58.2 million, or 10.0% of sales, with diluted EPS rising 17% to $0.74[15] - Full year adjusted net income decreased 14% to $202.4 million, with adjusted net income per diluted share decreasing 9% to $2.48[29] - Gross profit for Q4 2025 was $340.9 million, compared to $326.4 million in Q4 2024, resulting in a gross margin of approximately 58.4%[47] - Net income for the twelve months ended January 3, 2026, was $165,387, down from $175,689 in the previous year, indicating a decrease of approximately 5.5%[52] - Adjusted operating income for the twelve months ended January 3, 2026, was $269.7 million, down from $309.4 million in the previous year, reflecting a decrease of 12.8%[60] - The net income per diluted share for the twelve months ended January 3, 2026, was $2.03, compared to $2.05 in the previous year, a slight decrease of 1.0%[60] Expenses and Cash Flow - Selling, general, and administrative (SG&A) expenses rose 9% to $265.4 million, accounting for 45.5% of sales[9] - Operating cash flow for the fourth quarter was $254.7 million, with free cash flow of $212.1 million[3] - Free cash flow for the twelve months ended January 3, 2026, was $212.1 million, slightly down from $219.6 million in the previous year[69] - Cash provided by operating activities for the twelve months ended January 3, 2026, was $254,737, compared to $261,386 for the same period in 2024, showing a decline of about 2.5%[52] Shareholder Returns - The company returned nearly $300 million to shareholders in 2025 through share repurchases[2] - The company repurchased 3.1 million shares for $124.9 million in Q4 2025, totaling 8.2 million shares repurchased for $297.6 million in Fiscal 2025[32] - The company repurchased common stock amounting to $297,780 during the twelve months ended January 3, 2026, compared to $200,000 in the previous year, reflecting a significant increase of approximately 48.9%[52] Future Outlook - YETI expects full-year sales growth between 6% and 8% for Fiscal 2026, supported by contributions from both Drinkware and Coolers & Equipment[33] - Adjusted net income per diluted share is projected to be between $2.77 and $2.83, reflecting a 12% to 14% increase compared to the previous year[36] - Capital expenditures for Fiscal 2026 are expected to be between $60 million and $70 million, primarily for technology and new product innovation[36] - Free cash flow is projected to be between $200 million and $225 million for Fiscal 2026[36] - The company anticipates an effective tax rate of approximately 24% for Fiscal 2026[36] Inventory and Assets - Inventory decreased by 6% to $290.6 million from $310.1 million at the end of Fiscal 2024, reflecting strategic inventory management[30] - Total current assets decreased to $660,326 as of January 3, 2026, from $826,766 as of December 28, 2024, a reduction of approximately 20.1%[49] - Total liabilities increased to $585,142 as of January 3, 2026, compared to $546,013 as of December 28, 2024, representing an increase of about 7.2%[49] - Total stockholders' equity decreased to $650,276 as of January 3, 2026, from $740,107 as of December 28, 2024, a decline of about 12.1%[49] Liquidity - The company maintained a strong liquidity position with cash of $188.3 million and total debt of $73.8 million as of the end of Fiscal 2025[30] - The company reported a cash balance of $188,342 at the end of the period, down from $358,795 at the beginning, indicating a decrease of approximately 47.5%[52] Product Development - The company launched the Yonder shaker bottle in Q4, showcasing its commitment to innovation and product development[2] - The company’s international sales for the three months ended January 3, 2026, were $135.9 million, an increase from $108.9 million in the same period in 2024, reflecting a growth of 24.8%[65]