NYSE$YETI

YETI Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

YETI's Q3 2022 results were released, showcasing a 20% increase in net sales.

YETI Holdings reported a stronger than expected 20% increase in sales for the third quarter of 2022, driven by growth in both DTC and wholesale channels. However, gross margin decreased due to higher inbound freight, product costs, and unfavorable foreign currency exchange rates. The company maintains and narrows its fiscal year 2022 outlook, expecting sales growth of approximately 16% and an adjusted operating margin of approximately 17%.

  • Net sales increased by 20% to $433.6 million compared to the same period last year.
  • Direct-to-consumer (DTC) channel sales increased by 15% to $227.4 million, representing 52% of total sales.
  • Wholesale channel sales increased by 25% to $206.2 million, driven by Coolers & Equipment.
  • Gross margin decreased by 580 basis points to 51.3%, impacted by higher inbound freight, product costs and unfavorable foreign currency exchange rates.

Headline financials

Total Revenue

$434M

Previous: $363M+19.6%
EPS (adj)

$0.63

Previous: $0.64-1.6%
Gross Margin

51.3%

Previous: 57.1%-10.2%
Adjusted Operating Margin

16.9%

Previous: 20.5%-17.6%
Net Income Margin

10.5%

Previous: 14.6%-28.1%
Adjusted Net Income Margin

12.6%

Previous: 15.7%-19.7%
Capital Expenditures

-$32.5M

Previous: -$41.2M+21.1%
Free Cash Flow

$13M

Previous: $11.8M+10.3%
Net Income

$45.5M

Previous: $53M-14.1%
Operating Income

$68.5M

Previous: $68.7M-0.4%
Gross Profit

$222M

Previous: $207M+7.4%
Cash & Equivalents

$77.8M

Previous: $259M-70.0%
Total Assets

$983M

Previous: $946M+4.0%
Stock-Based Comp

$4.66M

No prior period

Revenue & EPS history

YETI · Revenue · Quarterly

$434M

Q3 2022+19.6%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

YETI · $858M total across 4 segments · Q3 2022

  • Drinkware
    $239M+16.6%
  • Direct-to-consumer
    $227M+15.4%
  • Wholesale
    $206M+24.6%
  • Coolers & Equipment
    $186M+24.6%

Forward guidance

YETI is maintaining and narrowing its Fiscal 2022 outlook, expecting sales growth of approximately 16% and an adjusted operating margin of approximately 17%.

Tailwinds

  • Expects full year 2022 sales growth of 16%.
  • Third quarter performance saw an increase in wholesale orders backed by continued strong sell-through.
  • Channel's effort to reach more optimal inventory levels earlier than normally seen ahead of the holiday season.
  • Expects adjusted operating margin to come in at approximately 17%.
  • Confident in ability to drive brand and product momentum and strengthen balance sheet.

Headwinds

  • Sales growth outlook takes into consideration a prudently cautious position for the fourth quarter.
  • Adjusted operating margin reflects supply chain cost challenges.
  • Operating income is expected to decrease approximately 6%.
  • Adjusted operating income is expected to decrease approximately 6%.
  • Adjusted net income per diluted share is expected to be approximately $2.36, reflecting a 9% decrease.

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 2022

Historical avgQ3 2022

+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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