NYSE$YETI

YETI Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

YETI's third quarter results reflected consistent execution of its growth strategy, driving brand and product interest, and setting up the business for long-term, sustainable growth.

YETI's sales were flat year-over-year, but the direct-to-consumer channel saw a 14% increase. Gross margin expanded significantly, driven by lower inbound freight and product costs. The company maintains its full-year sales outlook and narrows adjusted EPS outlook to the high-end of the prior range.

  • Sales were flat at $433.6 million compared to the same period last year.
  • Direct-to-consumer (DTC) channel sales increased 14% to $259.5 million.
  • Gross profit increased 13% to $251.3 million, or 58.0% of sales.
  • Adjusted net income per diluted share decreased 5% to $0.60.

Headline financials

Total Revenue

$434M

Previous: $434M+0.0%
EPS (adj)

$0.60

Previous: $0.63-4.8%
Gross Margin

58.0%

Previous: 51.3%+13.1%
Adjusted Gross Margin

57.8%

No prior period
Adjusted Operating Margin

16.5%

Previous: 16.9%-2.4%
Net Income Margin

9.8%

Previous: 10.5%-6.7%
Adjusted Net Income Margin

12.2%

Previous: 12.6%-3.2%
Capital Expenditures

-$39M

Previous: -$32.5M-20.0%
Free Cash Flow

$3.67M

Previous: $13M-71.8%
Net Income

$42.7M

Previous: $45.5M-6.3%
Operating Income

$61.9M

Previous: $68.5M-9.6%
Gross Profit

$251M

Previous: $222M+13.0%
Cash & Equivalents

$281M

Previous: $77.8M+261.8%
Total Assets

$1.16B

Previous: $983M+17.6%
Stock-Based Comp

$7.81M

Previous: $4.66M+67.4%

Revenue & EPS history

YETI · Revenue · Quarterly

$434M

Q3 2023+0%vs Q3 2022
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 expects adjusted sales to increase approximately 4% and adjusted net income per diluted share of approximately $2.32 for 2023.

Tailwinds

  • Continuing to be innovative with our brand and our products
  • Demonstrating value to consumers
  • Committed to delivering our full year sales outlook
  • Updating our full year adjusted EPS outlook to the high-end of our prior range
  • Balance sheet and ability to generate strong cash flow will afford us a range of opportunities

Headwinds

  • Consumers who we expect will remain discerning with their spending through the holiday period
  • Approximate 500 basis points unfavorable impact on our growth rate from the stop sale of the products affected by the recalls
  • Effective tax rate of approximately 25.1% (compared to 22.8% in the prior year period)
  • Adjusted net income per diluted share of approximately $2.32, reflecting a 2% decrease
  • Adjusted SG&A deleverage, which is driven by the unfavorable topline impact from the stop sale of the products affected by the recalls as well as strategic investments

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 2023

Historical avgQ3 2023

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro