Core Viewpoint - The company is facing challenges in achieving its 30% sales growth target for FY25E due to weaker-than-expected sales trends, particularly in online sales in the US and China, and rising import tariffs impacting gross profit margins [1][5][7] Sales Growth Outlook - Sales growth in 2Q25E is expected to be slow, with estimates indicating a mixture of 10% growth in the US and negative growth in China and Europe, influenced by a high base from previous years and changing consumer interests [2][4] - The company has not altered its guidance of 30%+ sales growth for FY25E, but revised forecasts now suggest a more conservative 14% growth, down from 23%, with expectations of single-digit growth in 1H25E and 20% growth in 2H25E [4][7] Market-Specific Insights - In the US market, sales growth is projected at 10%, primarily driven by offline expansion, while e-commerce sales may face sluggish growth due to industry factors [4] - The Chinese market shows weak demand for small appliances and cookware, with potential year-over-year declines in sales for Carote in 1H25E and FY25E [4] - The European market is not a major focus for the company, leading to potentially weaker-than-expected sales growth [4] Impact of Tariffs - Recent increases in US tariffs on steel- and aluminium-based products could significantly impact gross profit margins, with total tariffs on Carote's products potentially reaching 73.3% [5][6] - The company may pass on about 15% of the tariffs through supply chain adjustments but will still face a 35% burden, leading to a revised gross profit margin assumption of around 33% for the US market in FY25E [6] Financial Forecast Adjustments - The company has downgraded its rating to HOLD and cut the target price to HK$ 4.64, based on a 10x FY25E P/E, reflecting a 28% reduction in net profit forecasts for FY25E due to weaker demand and higher import tariffs [1][7]

Summary of YETI FY Conference Call (June 05, 2025) Company Overview - **Company**: YETI Holdings, Inc. (YETI) - **Industry**: Consumer Goods, specifically outdoor and lifestyle products Key Points and Arguments Company Evolution and Growth Strategy - YETI has evolved from a limited product range in 2016 to a diverse portfolio with over 60 drinkware products and more than 30 cooler products, including hard and soft coolers [4][7] - The company has shifted its sales model from 90% wholesale to 60% direct-to-consumer (D2C) [7] - International sales are projected to reach approximately $400 million in 2025, primarily from Canada and Australia, with growth opportunities in the UK and Germany [8][52] Product Innovation and Expansion - YETI is focusing on product innovation, including new categories such as outdoor cooking and insulated food storage [11][15] - The company has acquired Mystery Ranch to enhance its bags portfolio, with plans to rebrand and relaunch products [16][19] - A powered cooler is in development, aimed at markets with limited access to ice, which is expected to resonate globally [22] Marketing Strategy - YETI employs a community-focused marketing strategy, emphasizing local engagement and brand authenticity [27][28] - The consumer demographic has diversified, with a more balanced male-to-female ratio and a wide range of price points from $20 to $1,500 [29] Consumer Environment and Financial Guidance - YETI revised its revenue growth guidance from 5-7% to 1-4% due to supply chain disruptions and increased tariffs [31][32] - The company is transitioning its supply chain out of China, with only 5% of COGS expected to be sourced from there by year-end [32][61] - Signs of consumer caution have been observed, particularly among wholesale partners, but certain segments like Amazon and corporate sales continue to perform well [34] Category Performance - The drinkware category has seen a decline in sales after significant growth, attributed to market saturation and increased competition [38][41] - The cooler category remains strong, with new product innovations driving growth [46][49] International Expansion - YETI is entering the Japanese market and plans to expand further into Asia, with a focus on establishing wholesale relationships and brand awareness [55] Financial Health and Capital Allocation - YETI expects to generate over $100 million in free cash flow this year, with minimal debt [62][63] - The company has been active in share repurchases and M&A, focusing on innovation rather than building a house of brands [65] Additional Important Insights - The company is experiencing a transition phase with supply chain adjustments and product launches, which may temporarily impact growth [33][60] - YETI's marketing strategy is crucial for maintaining brand loyalty while expanding into new consumer segments and product categories [26][27]

Image source: The Motley Fool.Thursday, May 22, 2025 at 10 a.m. ETCALL PARTICIPANTSPresident & Chief Executive Officer — Laura AlberExecutive Vice President & Chief Financial Officer — Jeff HowieNeed a quote from one of our analysts? Email [email protected]TAKEAWAYSComparable Brand Revenue: Comparable brand revenue increased 3.4% in Q1 FY2025, with all brands achieving positive comps with furniture comps turning positive for the first time since Q4 FY2022. Operating Margin: Operating margin reached 16.8% in ...

Group 1: Earnings Performance - Williams-Sonoma reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $2.04 per share a year ago, representing an earnings surprise of 5.11% [1] - The company posted revenues of $1.73 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.73% and up from $1.66 billion year-over-year [2] Group 2: Stock Performance and Outlook - Williams-Sonoma shares have declined approximately 9.3% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $1.8 billion, and for the current fiscal year, it is $8.46 on revenues of $7.68 billion [7] Group 3: Industry Context - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Lowe's (LOW) came out with quarterly earnings of $2.92 per share, beating the Zacks Consensus Estimate of $2.88 per share. This compares to earnings of $3.06 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 1.39%. A quarter ago, it was expected that this home improvement retailer would post earnings of $1.83 per share when it actually produced earnings of $1.93, delivering a surprise of 5.46%. Over the last four quarters, the ...

This company is a standout performer with a long track record of growth. The S&P 500 is widely regarded as the best overall gauge of the U.S. stock market, as it comprises the 500 largest publicly traded companies in the country. Given the breadth of businesses that make up the index, it is considered the most reliable benchmark of overall stock market performance. To be considered for admission to the S&P 500, a company must meet the following criteria: Williams-Sonoma (WSM 0.08%) is one of the most recent ...

Williams-Sonoma (WSM) closed at $171.67 in the latest trading session, marking a +0.03% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 0.18%.Heading into today, shares of the seller of cookware and home furnishings had gained 24.71% over the past month, outpacing the Retail-Wholesale sector's gain of 9.47% and the S&P 500's gain of 9% in that time.The upcoming earnings release of Williams-Sonom ...

Company Performance - Williams-Sonoma (WSM) closed at $160.31, reflecting a -0.36% change from the previous day, which is less than the S&P 500's daily loss of 0.07% [1] - The stock has increased by 8.79% over the past month, underperforming compared to the Retail-Wholesale sector's gain of 14% and the S&P 500's gain of 13.74% [1] Upcoming Earnings - The upcoming earnings disclosure is anticipated to show an EPS of $1.76, representing a 13.73% decline year-over-year [2] - Revenue is expected to be $1.67 billion, indicating a 0.56% increase compared to the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates project full-year earnings of $8.49 per share and revenue of $7.69 billion, reflecting year-over-year changes of -3.41% and -0.34%, respectively [3] - Recent changes to analyst estimates are crucial as they indicate near-term business trends and analyst sentiment regarding the company's profitability [3] Zacks Rank and Valuation - The Zacks Rank system currently rates Williams-Sonoma at 3 (Hold), with a recent 0.3% decrease in the EPS estimate over the past month [5] - The company has a Forward P/E ratio of 18.95, which aligns with the industry's average [6] - Williams-Sonoma's PEG ratio stands at 2.61, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.25 [6] Industry Context - The Retail - Home Furnishings industry ranks in the bottom 18% of all industries, with a current Zacks Industry Rank of 203 [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Floor & Decor (FND) reported quarterly earnings of $0.45 per share, matching the Zacks Consensus Estimate, but down from $0.46 per share a year ago [1] - The company posted revenues of $1.16 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.31%, compared to $1.1 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2][3] Stock Movement and Outlook - Floor & Decor shares have declined approximately 28.4% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $1.23 billion, and for the current fiscal year, it is $1.99 on revenues of $4.83 billion [7] Industry Context - The Retail - Home Furnishings industry, to which Floor & Decor belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Floor & Decor's stock performance [5][6]

Williams-Sonoma (WSM) shares rallied 13.7% in the last trading session to close at $158.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.4% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Williams-Sonoma shares soared, reflecting renewed investor optimism.This seller of cookware and home furnishings is expected to post quarter ...