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Apr 03, 2021

YETI Q1 2021 Earnings Report

YETI reported strong first quarter results, driven by robust demand and significant gross margin expansion.

Key Takeaways

YETI Holdings, Inc. announced exceptional first quarter results with a 42% increase in net sales, fueled by strong demand. Gross margin expansion powered a nearly 700-basis point improvement in operating margin, contributing to a more than three-fold increase in earnings per share. The company is raising its full-year net sales and earnings per share outlooks to 20% and 22% growth, respectively.

Net sales increased by 42% to $247.6 million compared to the same period last year.

Direct-to-consumer (DTC) channel net sales increased 59% to $126.8 million.

Gross profit increased 57% to $145.2 million, with gross margin expanding by 560 basis points to 58.6%.

Operating income increased 148% to $40.0 million, representing 16.2% of net sales.

Total Revenue
$248M
Previous year: $174M
+41.9%
EPS
$0.38
Previous year: $0.11
+245.5%
Gross Margin
58.6%
Previous year: 53%
+10.6%
Operating Margin
16.2%
Previous year: 9.3%
+74.2%
Adjusted Operating Margin
17.7%
Previous year: 10.3%
+71.8%
Gross Profit
$145M
Previous year: $92.5M
+57.0%
Cash and Equivalents
$190M
Previous year: $118M
+61.0%
Total Assets
$733M
Previous year: $667M
+10.0%

YETI

YETI

YETI Revenue by Segment

Forward Guidance

YETI raises 2021 outlook for net sales and earnings per share, expecting growth between 20% and 22% respectively.

Positive Outlook

  • Net sales are expected to increase between 20% and 22%.
  • Operating income as a percentage of net sales is expected to be approximately 19%.
  • Adjusted operating income as a percentage of net sales is expected to be approximately 20.5%.
  • Effective tax rate is expected to be approximately 24.0%.
  • Adjusted net income per diluted share is expected to be between $2.28 and $2.32.

Revenue & Expenses

Visualization of income flow from segment revenue to net income