Yeti’s profits softened in its third quarter, but the thermal beverageware and outdoor products company beat analyst estimates on earnings and sales, citing innovation and international expansion.
Net income was $39.4 million, or 48 cents per diluted share, compared to $56.3 million, or 66 cents per diluted share, in the prior-year quarter. Adjusted for one-time events, net income was $49.6 million, or 61 cents per diluted share, versus $60.4 million, or 71 per diluted share, in the year-earlier period.
An analyst consensus estimate from Zacks Investment Research had earnings per adjusted diluted share at 57 cents and revenues at $478.9 million.
Net sales were $487.8 million versus $478.4 million in the year-before quarter. Operating income was $54.4 million versus $69.6 million in the year-previous period, while adjusted operating income was $66.6 million versus $79.2 million.
Sales in the U.S. decreased 1% to $387.3 million from the year-past quarter, while international sales increased 14% to $100.4 million, reflecting growth across all regions led by Europe and Australia, as well as increasing consumer enthusiasm in Japan, Yeti reported.
In addition, the company stated direct-to-consumer channel sales in the quarter increased 3% to $288.7 million year over year, primarily due to growth via Amazon Marketplace, corporate sales and the company’s retail stores. A decline in sales on the Yeti website in the United States partially offset the gains. Wholesale channel sales increased 1% to $199 million year over year, primarily due to growth in Coolers and Equipment despite a cautious U.S. market environment.
Drinkware sales decreased 4% to $263.8 million year over year with international regions gains more than offset by a decline in the U.S., reflecting a promotional market environment and inventory constraints driven by supply chain transitioning. Coolers and Equipment sales increased 12% to $215.4 million year over year due to growth in both the U.S, and international regions driven by a strong performance in soft coolers and bags.
Yeti updated its full year outlook on adjusted sales, now expected to increase 1% to 2% versus the previous outlook of flat to up 2%. Adjusted net income per diluted share is now expected to come in at between $2.38 and $2.49 versus the previous outlook of between $2.34 and $2.48.
In announcing the financial results Matt Reintjes, Yeti president and CEO said, “Our third-quarter results continue to show the strength of Yeti and the positive momentum of our long-term growth strategy. Anchored in accelerating product innovation, a powerful and growing global brand and expanding international reach, we are seeing meaningful wins across all three strategic growth pillars. As we look beyond 2025, continued execution against these three pillars sets YetiI on the path to a long-term topline growth range of high-single-digits to low-double-digits.”
Reintjes added, “A core component of our forward growth is the compounding effect of our innovation engine, which will deliver more new products in 2025 than ever before even amid significant supply chain disruption. This innovation is the result of continued investment in direct product development plus the incremental capabilities and designs from our recent product-focused acquisitions in bags, cookware and the soon-to-be-released shaker bottle. The broad-based introduction of new products across our 13 product platforms will be the driving force behind growth across Drinkware and Coolers and Equipment. This effort around innovation is amplified by the YetiI brand from our strong foundational audiences to the significant expansion efforts across global sports, spanning youth to professional.”
As the company navigated through a disruptive macroeconomic backdrop and supply chain transition, Reintjes said, “we saw outstanding momentum domestically, highlighted by strong end-consumer demand overall and very robust U.S. wholesale sell-through in our tracked channels in both Drinkware and Coolers and Equipment. This consumer demand underscores the clear strength of our brand and the impact of our innovation even in a cautious wholesale buying and consumer environment. Internationally, our business is firmly on track to achieve our historical levels of growth for the full year, accounting for the quarter-to-quarter dynamics and highlighting significant opportunities ahead in the global markets. Complementing our brand strength and innovation momentum, our global footprint continues to strengthen in the U.K. and Europe, and across our expanding partnerships in the rest of the world.”
