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Sep 26, 2020
YETI Q3 2020 Earnings Report
YETI's Q3 2020 results showed strong growth, with net sales increasing by 29% and operating margin expanding by 900 basis points.
Key Takeaways
YETI reported a strong third quarter with a 29% increase in net sales, driven by growth in both DTC and wholesale channels. The company also saw significant improvements in gross margin and operating margin, leading to a substantial increase in net income.
Net sales increased by 29% to $294.6 million.
Direct-to-consumer (DTC) net sales increased by 62% to $150.4 million.
Gross margin increased by 670 basis points to 59.1%.
Net income increased by 142% to $51.4 million, with EPS increasing by 137% to $0.58.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
YETI expects net sales to increase between 15% and 16% for the fourth quarter of Fiscal 2020. Net income per diluted share is expected to be between $0.55 and $0.58, and adjusted net income per diluted share is expected to be between $0.57 and $0.60.
Positive Outlook
- Strong demand expected to continue.
- Includes the impact of the 53rd week in Fiscal 2020.
- Net income per diluted share is expected to be between $0.55 and $0.58.
- Adjusted net income per diluted share is expected to be between $0.57 and $0.60.
- Reflecting 31% to 38% growth compared to the fourth quarter of Fiscal 2019.
Challenges Ahead
- Uncertainty of the duration and severity of the COVID-19 pandemic.
- Limited outlook provided due to COVID-19 uncertainty.
- Inventory constraints may impact sales.
- Dependence on consumer spending and economic conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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