Home Drinkware, Cooler Gains in Q1 Leave Yeti Optimistic About 2024
May 10, 2024

Drinkware, Cooler Gains in Q1 Leave Yeti Optimistic About 2024

Yeti posted year-over-year sales and earnings growth, beating Wall Street estimates with a lift from drinkware and cooler sales.

Net income was $15.9 million, or 18 cents per diluted share, versus  $10.6 million, or 12 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, net income was $29.3 million, or 34 cents per diluted share, versus $15.5 million, 18 cents per diluted share, in the year-earlier period, the company reported.

An analyst consensus estimate published by Yahoo Finance called for earnings per adjusted diluted share of 25 cents and revenue of $333.3 million.

Yeti sales increased to $341.4 million from $302.8 million in the year-before quarter.

By segment, the results were:

  • Direct-to-consumer sales gained 12% to $187.8 million because of growth in the Drinkware and Coolers & Equipment businesses.
  • Wholesale channel sales increased 13% to $153.6 million with growth in Coolers & Equipment and Drinkware.
  • Drinkware sales advanced 13% to $214.6 million, driven by continued expansion of and innovation within the product offering, as well as new seasonal colorways.
  • Coolers & Equipment sales grew 15% to $119.9 million, driven by strong performance in bags, soft coolers and hard coolers.

Operating income increased to $25.8 million from $15.1 million in the quarter year over year, Yeti stated, while adjusted operating income increased to $39.6 million from $21.7 million.

Matt Reintjes, Yeti president and CEO said, “First-quarter results were highlighted by balanced, double-digit growth across both our wholesale and direct-to-consumer channels, as well as our Drinkware and Coolers & Equipment categories. This performance was punctuated by our international sales mix reaching a record 19% coupled with re-acceleration in domestic growth. Profitability continued to show strength with both adjusted gross margin and adjusted operating margin expanding nearly 450 basis points during the period. Additionally, we completed our previously announced acquisitions and entered into a $100 million accelerated share repurchase agreement. We remain confident as we move into the second quarter and second half of the year. We are well positioned in Coolers & Equipment to leverage new innovation, expanded color options and impactful product marketing. On top of that, we continue to see strong demand for our diverse range of Drinkware, as our brand continues to grow both domestically and internationally.”

In looking ahead, Reintjes added, “With the bulk of the year ahead of us, we are maintaining our topline outlook as we weigh our strong first quarter execution with the ongoing uncertainties that persist in the market. However, with the continued momentum in our gross margin improvement and the execution of our accelerated share repurchase, we have raised our full-year bottom line range. We remain focused on strategic investments to drive the Yeti brand, product innovation, channel growth and global expansion.”

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