Yeti Holdings Inc. Beats Third-Quarter Earnings Expectations
Yeti Holdings Inc. exceeds earnings expectations, raises full-year outlook, and improves gross margin. Sales remain steady with increase in drinkware sales.
Shares of Yeti Holdings Inc. (YETI) gained 0.9% in premarket trading Thursday, following the release of their impressive third-quarter earnings report. The drinkware, coolers, and outdoor products maker announced that they exceeded analysts' expectations and raised their full-year outlook due to improved gross margin.
Yeti's net income for the quarter was $42.7 million, or 49 cents a share, compared to $45.5 million, or 52 cents a share, in the same period last year. However, when excluding nonrecurring items, adjusted earnings per share stood at 60 cents, surpassing the FactSet consensus of 55 cents.
Although sales remained relatively flat at $433.6 million, it still outperformed the FactSet consensus of $427.5 million. Drinkware sales saw a solid increase of 6% to $253.3 million, offset by a decrease of 8% in coolers and equipment sales, which reached $171.5 million. The decline in cooler and equipment sales was primarily driven by the temporary halt in the sales of soft coolers due to recalls.
Yeti was able to enhance its gross margin significantly, rising from 51.3% to an impressive 58.0%. This improvement can be attributed to lower freight and product costs, which positively impacted their profitability.
As a result of their strong performance in the third quarter, Yeti has raised its adjusted EPS outlook for 2023. They now anticipate achieving approximately $2.32 per share compared to the previous range of $2.23 to $2.32.
Over the past three months through Wednesday, Yeti's stock has experienced a modest decrease of 0.5%. In contrast, the S&P 500 index has declined by 1.9% during the same period.
Yeti Holdings Inc. continues to excel in the market, thanks to their innovation in drinkware, coolers, and outdoor products. With improved earnings, gross margin, and an upgraded full-year outlook, Yeti is well-positioned for future success.