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Jun 29, 2024
YETI Q2 2024 Earnings Report
YETI's Q2 2024 performance was marked by a 15% increase in net sales, driven by strong growth in Coolers & Equipment and international markets, along with gross margin expansion and increased EPS.
Key Takeaways
YETI reported a strong second quarter in 2024, with net sales increasing by 15% to $463.5 million. The company saw significant growth in its Coolers & Equipment category and international business. Gross margin expanded, and both EPS and adjusted EPS increased.
Net sales increased by 15%, inclusive of a recall reserve adjustment; adjusted net sales increased by 9%.
Coolers & Equipment net sales increased by 31%, while Drinkware net sales increased by 6%.
Gross margin expanded by 360 basis points to 57.0%; adjusted gross margin expanded by 280 basis points to 57.7%.
EPS increased 34% to $0.59; adjusted EPS increased 23% to $0.70.
YETI
YETI
YETI Revenue by Segment
YETI Revenue by Geographic Location
Revenue by Segment
Direct-to-Consumer Revenue
CapyFin.comWholesale Revenue
CapyFin.comDrinkware Revenue
CapyFin.comCoolers & Equipment Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
YETI has increased its outlook for fiscal year 2024, expecting adjusted sales to increase between 8% and 10% and adjusted net income per diluted share between $2.61 and $2.65.
Positive Outlook
- Adjusted sales are expected to increase between 8% and 10%.
- Adjusted operating income as a percentage of adjusted sales is expected to be approximately 16.5%.
- The effective tax rate is expected to be approximately 25.2%.
- Adjusted net income per diluted share is projected to be between $2.61 and $2.65, reflecting a 16% to 18% increase.
- Capital expenditures are expected to be between $50 million and $60 million, primarily to support investments in technology and new product innovation.
Challenges Ahead
- The macro environment remains uncertain.
- An effective tax rate of approximately 25.2% (compared to 24.8% in the prior year period)
- Diluted weighted average shares outstanding of approximately 86.0 million
- Capital expenditures between $50 million and $60 million
- Uncertainty in forecasting with reasonable certainty certain amounts that are necessary for reconciliation
Revenue & Expenses
Visualization of income flow from segment revenue to net income