YETI Holdings Inc · Q1 2024 earnings

Briefing

YETI's Q1 2024 results were marked by balanced, double-digit growth across wholesale and direct-to-consumer channels, as well as Drinkware and Coolers & Equipment categories. International sales mix reached a record 19%, coupled with re-acceleration in domestic growth. Profitability continued to show strength with adjusted gross margin and adjusted operating margin expanding nearly 450 basis points during the period.

YETI Holdings, Inc. reported a 13% increase in net sales for Q1 2024, with significant growth in both wholesale and direct-to-consumer channels, as well as in the Coolers & Equipment and Drinkware categories. The company experienced gross margin and operating margin expansion, leading to a 50% increase in EPS and an 89% increase in adjusted EPS. The company maintains full year 2024 sales outlook and raises full year 2024 EPS outlook.

• Net sales increased by 13%, driven by growth in Coolers & Equipment (15%) and Drinkware (13%).
• Wholesale net sales increased by 13%, while direct-to-consumer net sales increased by 12%.
• International net sales increased by 32%, and U.S. net sales increased by 9%.
• Gross margin expanded by 360 basis points to 57.1%, and adjusted gross margin expanded by 450 basis points to 57.5%.

Headline financials

Revenue & EPS history

YETI is maintaining its topline outlook for 2024, expecting adjusted sales to increase between 7% and 9%. With continued momentum in gross margin improvement and the execution of its accelerated share repurchase, the company has raised its full year bottom line range. Adjusted net income per diluted share is expected to be between $2.49 and $2.62.