NYSE$YETI

YETI Holdings Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

YETI's Q4 2019 financial performance reflected strong net sales growth and gross margin expansion, but was impacted by one-time stock-based compensation expense.

YETI reported a 23% increase in net sales for the fourth quarter of 2019, driven by growth in both DTC and wholesale channels. Gross margin expanded by 150 basis points, primarily due to cost improvements and a favorable shift in channel mix. However, operating income and net income decreased due to a significant one-time non-cash stock-based compensation expense.

  • Net sales increased by 23% to $297.6 million compared to the same period last year.
  • Direct-to-consumer (DTC) channel net sales increased by 35% to $149.0 million.
  • Gross margin expanded by 150 basis points to 54.5% of net sales.
  • Net income decreased by 81% to $4.7 million, impacted by a one-time non-cash stock-based compensation expense.

Headline financials

Total Revenue

$298M

Previous: $241M+23.4%
EPS (adj)

$0.48

Previous: $0.38+26.3%
Gross Margin

54.5%

Previous: 53.0%+2.8%
Adjusted Operating Margin

20.1%

Previous: 19.0%+5.8%
Net Income Margin

1.6%

No prior period
Adjusted Net Income Margin

14.1%

No prior period
Capital Expenditures

$7.83M

Previous: $7.52M+4.1%
Free Cash Flow

$52.5M

Previous: $49.7M+5.6%
Net Income

$4.74M

Previous: $25.2M-81.2%
Operating Income

$12M

Previous: $37.6M-68.1%
Gross Profit

$162M

Previous: $128M+27.0%
Cash & Equivalents

$72.5M

Previous: $80.1M-9.4%
Total Assets

$630M

Previous: $514M+22.4%
Stock-Based Comp

$41.9M

Previous: $3.22M+1203.9%

Revenue & EPS history

YETI · Revenue · Quarterly

$298M

Q4 2019+23.4%vs Q4 2018
Beat estimate in 9 of 9 quarters(100%)
ActualEstimate

Revenue by segment

YETI · $592M total across 4 segments · Q4 2019

  • Drinkware
    $192M+33.8%
  • Direct-to-consumer
    $149M+34.8%
  • Wholesale
    $149M+13.8%
  • Coolers & Equipment
    $102M+12.2%

Forward guidance

YETI expects net sales to increase between 13.0% and 15.0% for fiscal year 2020.

Tailwinds

  • Net sales to increase between 13.0% and 15.0% compared to Fiscal 2019.
  • Strong growth across both channels and led by the DTC channel.
  • Operating income as a percentage of net sales between 15.3% and 15.6%.
  • Adjusted operating income as a percentage of net sales between 16.3% and 16.6%, reflecting margin expansion of 70 to 100 basis points, driven by higher gross margin.
  • Adjusted EBITDA between $202.1 million and $207.9 million, or between 19.6% and 19.8% of net sales, reflecting 18% to 21% growth.

Headwinds

  • An effective tax rate of approximately 25.0%.
  • Net income per diluted share is now expected to be between $1.24 and $1.29, reflecting 112% to 122% growth.
  • Adjusted net income per diluted share between $1.34 and $1.39, reflecting 26% to 30% growth.
  • Diluted weighted average shares outstanding of 87.7 million.
  • Capital expenditures between $30 million and $35 million.

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 Q4 2019

Historical avgQ4 2019

+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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