On August 8, 2024, YETI Holdings Inc (YETI, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial results that exceeded analyst estimates. YETI Holdings Inc is a designer, marketer, and distributor of premium products for the outdoor and recreation market sold under the YETI brand. The company offers products including coolers and equipment, drinkware, and other accessories. Its trademark products include YETI Tundra, Hopper, YETI TANK, Rambler, and Colster, among others. The company distributes products through wholesale channels and direct-to-consumer (DTC) channels.
Performance Highlights
YETI Holdings Inc reported a 15% increase in net sales, reaching $463.5 million, compared to $402.6 million in the same period last year. Adjusted net sales, which exclude the recall reserve adjustment, increased by 9%. The company's earnings per share (EPS) rose by 34% to $0.70, surpassing the analyst estimate of $0.60. Revenue also exceeded expectations, coming in at $463.5 million against the estimated $453.11 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Sales | $463.5 million | $402.6 million | +15% |
| Adjusted Net Sales | $463.5 million | $427.1 million | +9% |
| Gross Profit | $264.3 million | $214.8 million | +23% |
| Adjusted Gross Profit | $267.5 million | $234.3 million | +14% |
| Operating Income | $67.4 million | $50.3 million | +34% |
| Adjusted Operating Income | $80.0 million | $67.1 million | +19% |
| Net Income | $50.4 million | $38.1 million | +32% |
| Adjusted Net Income | $59.6 million | $49.8 million | +20% |
| EPS | $0.59 | $0.44 | +34% |
| Adjusted EPS | $0.70 | $0.57 | +23% |
Segment Performance
YETI's Coolers & Equipment segment saw a remarkable 31% increase in net sales, while Drinkware sales grew by 6%. The Wholesale channel experienced a 21% rise in net sales, and the DTC channel saw an 11% increase. International net sales surged by 35%, reflecting the company's successful expansion efforts outside the U.S.
Financial Achievements and Challenges
YETI's gross margin expanded by 360 basis points to 57.0%, primarily due to lower inbound freight costs and lower product costs. However, selling, general, and administrative (SG&A) expenses increased by 20% to $196.9 million, driven by higher employee costs and marketing expenses. Despite these challenges, the company's operating margin improved by 200 basis points to 14.5%.
Matt Reintjes, President and Chief Executive Officer, commented, “YETI delivered another great quarter, highlighted by our Coolers & Equipment category and continued growth of our business outside the United States. Supported by a strong lineup of new innovation, we were well positioned to capitalize on cooler demand, which we saw steadily build throughout the quarter.”
Updated 2024 Outlook
YETI has raised its full-year 2024 outlook, now expecting adjusted sales to increase between 8% and 10%, and adjusted EPS to range between $2.61 and $2.65, reflecting a 16% to 18% increase. This optimistic outlook is supported by the company's strong Q2 performance and continued confidence in its strategic initiatives.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from YETI Holdings Inc for further details.
