NYSE$YETI

YETI Holdings Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

YETI's Q3 2020 results showed strong growth, with net sales increasing by 29% and operating margin expanding by 900 basis points.

YETI reported a strong third quarter with a 29% increase in net sales, driven by growth in both DTC and wholesale channels. The company also saw significant improvements in gross margin and operating margin, leading to a substantial increase in net income.

  • Net sales increased by 29% to $294.6 million.
  • Direct-to-consumer (DTC) net sales increased by 62% to $150.4 million.
  • Gross margin increased by 670 basis points to 59.1%.
  • Net income increased by 142% to $51.4 million, with EPS increasing by 137% to $0.58.

Headline financials

Total Revenue

$295M

Previous: $229M+28.6%
EPS (adj)

$0.61

Previous: $0.30+103.3%
Gross Margin

59.1%

Previous: 52.4%+12.8%
Adjusted Operating Margin

24.6%

Previous: 16.0%+53.8%
Net Income Margin

17.5%

Previous: 9.3%+88.2%
Adjusted Net Income Margin

18.2%

Previous: 10.1%+80.2%
Capital Expenditures

$3.74M

Previous: -$24.2M+115.4%
Free Cash Flow

$163M

Previous: -$2.95M+5631.2%
Net Income

$51.4M

Previous: $21.3M+141.3%
Operating Income

$70.1M

Previous: $34M+106.1%
Gross Profit

$174M

Previous: $120M+44.9%
Cash & Equivalents

$235M

Previous: $34.6M+579.5%
Total Assets

$713M

Previous: $560M+27.3%
Stock-Based Comp

$2.28M

Previous: $2.11M+7.9%

Revenue & EPS history

YETI · Revenue · Quarterly

$295M

Q3 2020+28.6%vs Q3 2019
Beat estimate in 12 of 12 quarters(100%)
ActualEstimate

Revenue by segment

YETI · $585M total across 4 segments · Q3 2020

  • Drinkware
    $166M
  • Direct-to-consumer
    $150M
  • Wholesale
    $144M
  • Coolers & Equipment
    $124M

Forward guidance

YETI expects net sales to increase between 15% and 16% for the fourth quarter of Fiscal 2020. Net income per diluted share is expected to be between $0.55 and $0.58, and adjusted net income per diluted share is expected to be between $0.57 and $0.60.

Tailwinds

  • Strong demand expected to continue.
  • Includes the impact of the 53rd week in Fiscal 2020.
  • Net income per diluted share is expected to be between $0.55 and $0.58.
  • Adjusted net income per diluted share is expected to be between $0.57 and $0.60.
  • Reflecting 31% to 38% growth compared to the fourth quarter of Fiscal 2019.

Headwinds

  • Uncertainty of the duration and severity of the COVID-19 pandemic.
  • Limited outlook provided due to COVID-19 uncertainty.
  • Inventory constraints may impact sales.
  • Dependence on consumer spending and economic conditions.
  • Potential for fluctuations in raw material costs and availability.

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 Q3 2020

Historical avgQ3 2020

+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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