NYSE$YETI

YETI Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

YETI's Q2 2024 performance was marked by a 15% increase in net sales, driven by strong growth in Coolers & Equipment and international markets, along with gross margin expansion and increased EPS.

YETI reported a strong second quarter in 2024, with net sales increasing by 15% to $463.5 million. The company saw significant growth in its Coolers & Equipment category and international business. Gross margin expanded, and both EPS and adjusted EPS increased.

  • Net sales increased by 15%, inclusive of a recall reserve adjustment; adjusted net sales increased by 9%.
  • Coolers & Equipment net sales increased by 31%, while Drinkware net sales increased by 6%.
  • Gross margin expanded by 360 basis points to 57.0%; adjusted gross margin expanded by 280 basis points to 57.7%.
  • EPS increased 34% to $0.59; adjusted EPS increased 23% to $0.70.

Headline financials

Total Revenue

$463M

Previous: $403M+15.1%
EPS

$0.59

Previous: $0.57+3.5%
Gross Margin

57.0%

Previous: 53.4%+6.7%
Adjusted Gross Margin

57.7%

No prior period
Adjusted Operating Margin

17.3%

No prior period
Net Income Margin

10.9%

No prior period
Adjusted Net Income Margin

12.9%

No prior period
Capital Expenditures

-$21.6M

Previous: -$25.1M+13.7%
Free Cash Flow

$28.8M

Previous: $13M+121.2%
Net Income

$50.4M

Previous: $38.1M+32.4%
Operating Income

$67.4M

Previous: $50.3M+34.0%
Gross Profit

$264M

Previous: $215M+23.0%
Total Assets

$1.23B

Previous: $1.09B+13.5%
Stock-Based Comp

$8.83M

Previous: $7.34M+20.3%

Revenue & EPS history

YETI · Revenue · Quarterly

$463M

Q2 2024+15.1%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

YETI · $858M total across 4 segments · Q3 2023

  • Direct-to-consumer
    $260M+14.1%
  • Drinkware
    $253M+6.0%
  • Wholesale
    $174M-15.6%
  • Coolers & Equipment
    $172M-7.6%

Forward guidance

YETI has increased its outlook for fiscal year 2024, expecting adjusted sales to increase between 8% and 10% and adjusted net income per diluted share between $2.61 and $2.65.

Tailwinds

  • Adjusted sales are expected to increase between 8% and 10%.
  • Adjusted operating income as a percentage of adjusted sales is expected to be approximately 16.5%.
  • The effective tax rate is expected to be approximately 25.2%.
  • Adjusted net income per diluted share is projected to be between $2.61 and $2.65, reflecting a 16% to 18% increase.
  • Capital expenditures are expected to be between $50 million and $60 million, primarily to support investments in technology and new product innovation.

Headwinds

  • The macro environment remains uncertain.
  • An effective tax rate of approximately 25.2% (compared to 24.8% in the prior year period)
  • Diluted weighted average shares outstanding of approximately 86.0 million
  • Capital expenditures between $50 million and $60 million
  • Uncertainty in forecasting with reasonable certainty certain amounts that are necessary for reconciliation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.2%

Avg return

30 days after

39%

14 / 36 earnings

Positive

+44.7%

Q3 2022

Best reaction

-18.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+9.2%+31.5%
Q4 2025-4.6%-8.1%-28.2%
Q3 2025+5.3%+15.2%+29.9%
Q1 2025+6.0%+13.4%+13.0%
Q4 2024-0.9%+1.4%-15.1%
Q3 2024+7.0%+14.5%+17.5%
Q2 2024+10.7%+12.6%+0.8%
Q1 2024+14.0%+20.4%+23.6%
Q4 2023-18.8%-20.0%-23.1%
Q3 2023+4.1%+10.6%+16.6%
Q2 2023+13.5%+15.6%+19.5%
Q1 2023-5.2%-5.6%-16.7%
Q4 2022-3.5%-1.9%-1.6%
Q3 2022+44.7%+45.7%+47.2%
Q2 2022-17.3%-21.4%-34.3%
Q1 2022+3.0%+7.4%+1.6%
Q4 2021-8.0%-10.3%-5.0%
Q3 2021-5.0%+1.1%-12.8%
Q2 2021+1.6%+2.2%+0.8%
Q1 2021+8.8%+5.9%+16.6%
Q3 2020+14.3%+8.2%+22.2%
Q2 2020-2.4%-7.7%-4.1%
Q1 2020+6.7%+0.3%+31.4%
Q4 2019-5.4%-7.5%-34.1%
Q3 2019-5.2%-8.2%-8.3%
Q2 2019-12.7%-14.3%-18.7%
Q1 2018-8.9%-7.9%-22.2%
Q1 2019-7.1%-15.4%-29.5%
Q1 2017-1.9%+2.5%+11.1%
Q2 2017-1.9%+2.5%+11.1%
Q4 2016-1.9%+2.5%+11.1%
Q2 2018-1.9%+2.5%+11.1%
Q4 2018+22.4%+28.0%+59.6%
Q4 2017-8.5%-12.0%-9.3%
Q3 2017-8.5%-12.0%-9.3%
Q3 2018-12.3%-12.1%-22.8%
Q1 2016
Q1 2015

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