YETI(US:YETI)2024-05-09 10:08Financial Performance - Net sales increased 13% to $341.4 million, compared to $302.8 million in the same period last year[5] - Gross profit increased 20% to $194.8 million, with a gross margin of 57.1%, up from 53.5% in Q1 2023[6] - Adjusted EPS increased 89% to $0.34, while net income per diluted share rose 50% to $0.18[11][12] - Adjusted operating income increased 82% to $39.6 million, representing 11.6% of adjusted sales[11] - Operating income rose to $25,817,000, a 70.9% increase compared to $15,098,000 in the prior year[27][38] - Net income for the quarter was $15,855,000, up 50.3% from $10,564,000 in the same quarter last year, with diluted earnings per share of $0.18[27][38] - Adjusted net income for the quarter was $29,320,000, compared to $15,531,000 in the same period last year, indicating strong operational performance[38] Sales Growth - Direct-to-consumer sales increased 12% to $187.8 million, and wholesale sales increased 13% to $153.6 million[7] - International net sales surged 32%, while U.S. net sales grew by 9%[6] - The company reported a 9% increase in U.S. net sales, totaling $275.796 million, compared to $252.986 million in the prior year[42] - International net sales increased by 31.8%, reaching $65.598 million, up from $49.810 million year-over-year[42] - The drinkware category generated $214.580 million in sales, a 12.7% increase from $190.287 million in the previous year[42] Future Projections - For Fiscal 2024, adjusted sales are expected to increase between 7% and 9%, with adjusted net income per diluted share projected between $2.49 and $2.62[16] - Adjusted net sales for fiscal 2024 are projected to be between $1.798 billion and $1.832 billion, compared to $1.680 billion in fiscal 2023[45] - Adjusted operating income for fiscal 2024 is expected to range from $287.687 million to $302.222 million, reflecting an increase from $262.785 million in fiscal 2023[45] - Adjusted net income for fiscal 2024 is forecasted to be between $214.512 million and $225.366 million, up from $196.987 million in fiscal 2023[45] - Adjusted operating income as a percentage of adjusted net sales is projected to be between 16.0% and 16.5% for fiscal 2024, compared to 15.6% in fiscal 2023[45] Expenses and Liabilities - SG&A expenses rose 15% to $169.0 million, accounting for 49.5% of sales, up from 48.5% in the prior year[9] - Total current assets decreased to $703,185,000 from $914,405,000 at the end of December 2023, primarily due to a reduction in cash[29] - Cash and cash equivalents at the end of the period were $173,911,000, down from $438,960,000 at the beginning of the quarter[30] - Total liabilities decreased to $472,905,000 from $573,582,000 at the end of December 2023, reflecting improved financial health[29] Inventory and Share Repurchase - The company reported a significant increase in inventory to $363,919,000 from $337,208,000, suggesting a strategic buildup for future sales[29] - The company entered into a $100 million accelerated share repurchase agreement, completing the repurchase of approximately 2.6 million shares[17] - The weighted average shares outstanding for diluted earnings per share is expected to be 86,105 for fiscal 2024, down from 87,403 in fiscal 2023[45] Adjustments and Recalls - The company incurred $21.700 million in product recall adjustments for the twelve months ended December 30, 2023[48]