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Oct 02, 2021
YETI Q3 2021 Earnings Report
YETI's third quarter results reflected robust demand, delivering net sales growth and strong profitability amidst inflationary pressures.
Key Takeaways
YETI reported a 23% increase in net sales to $362.6 million, driven by strong performance in both DTC and wholesale channels. EPS increased to $0.60, with adjusted EPS rising to $0.64. The company raised its 2021 outlook, reflecting confidence in continued momentum.
Net sales increased by 23% to $362.6 million compared to the same period last year.
Direct-to-consumer (DTC) channel net sales increased 31% to $197.1 million.
Drinkware net sales increased 24% to $205.0 million, driven by product expansion and customization demand.
Coolers & Equipment net sales increased 20% to $149.0 million, driven by strong performance in bags and outdoor living products.
YETI
YETI
YETI Revenue by Segment
Revenue by Segment
Direct-to-Consumer Revenue
CapyFin.comWholesale Revenue
CapyFin.comDrinkware Revenue
CapyFin.comCoolers & Equipment Revenue
CapyFin.com Forward Guidance
YETI updated its 2021 outlook, expecting net sales to increase between 28% and 29%. Operating income as a percentage of net sales is expected to be approximately 19.5%, and adjusted operating income as a percentage of net sales is expected to be approximately 20.8%. Net income per diluted share is now expected to be between $2.35 and $2.37, and adjusted net income per diluted share is expected to be between $2.51 and $2.53.
Positive Outlook
- Net sales are now expected to increase between 28% and 29%.
- Operating income as a percentage of net sales is expected to be approximately 19.5%.
- Adjusted operating income as a percentage of net sales is expected to be approximately 20.8%.
- The effective tax rate is now expected to be approximately 22%.
- Adjusted net income per diluted share is now expected to be between $2.51 and $2.53.
Challenges Ahead
- Uncertainty regarding global economic conditions.
- Impact of the COVID-19 pandemic on global economic conditions.
- Fluctuations in the cost and availability of raw materials.
- Potential manufacturing delays or increased costs.
- Impact of indebtedness on the ability to invest in the ongoing needs of the business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income