https://assets.capyfin.com/instruments/678fdc13234e27009c5d5d69.png avatar
YETI
🇺🇸 NYSE:YETI
View Company
OverviewEarningsDividends
•
Oct 01, 2022

YETI Q3 2022 Earnings Report

YETI's Q3 2022 results were released, showcasing a 20% increase in net sales.

Key Takeaways

YETI Holdings reported a stronger than expected 20% increase in sales for the third quarter of 2022, driven by growth in both DTC and wholesale channels. However, gross margin decreased due to higher inbound freight, product costs, and unfavorable foreign currency exchange rates. The company maintains and narrows its fiscal year 2022 outlook, expecting sales growth of approximately 16% and an adjusted operating margin of approximately 17%.

Net sales increased by 20% to $433.6 million compared to the same period last year.

Direct-to-consumer (DTC) channel sales increased by 15% to $227.4 million, representing 52% of total sales.

Wholesale channel sales increased by 25% to $206.2 million, driven by Coolers & Equipment.

Gross margin decreased by 580 basis points to 51.3%, impacted by higher inbound freight, product costs and unfavorable foreign currency exchange rates.

Total Revenue
$434M
Previous year: $363M
+19.6%
EPS
$0.63
Previous year: $0.64
-1.6%
Gross Margin
51.3%
Previous year: 57.1%
-10.2%
Adjusted Operating Margin
16.9%
Previous year: 20.5%
-17.6%
Net Income Margin
10.5%
Previous year: 14.6%
-28.1%
Gross Profit
$222M
Previous year: $207M
+7.4%
Cash and Equivalents
$77.8M
Previous year: $259M
-70.0%
Free Cash Flow
-$4.12M
Total Assets
$983M
Previous year: $946M
+4.0%

YETI

YETI

YETI Revenue by Segment

Forward Guidance

YETI is maintaining and narrowing its Fiscal 2022 outlook, expecting sales growth of approximately 16% and an adjusted operating margin of approximately 17%.

Positive Outlook

  • Expects full year 2022 sales growth of 16%.
  • Third quarter performance saw an increase in wholesale orders backed by continued strong sell-through.
  • Channel's effort to reach more optimal inventory levels earlier than normally seen ahead of the holiday season.
  • Expects adjusted operating margin to come in at approximately 17%.
  • Confident in ability to drive brand and product momentum and strengthen balance sheet.

Challenges Ahead

  • Sales growth outlook takes into consideration a prudently cautious position for the fourth quarter.
  • Adjusted operating margin reflects supply chain cost challenges.
  • Operating income is expected to decrease approximately 6%.
  • Adjusted operating income is expected to decrease approximately 6%.
  • Adjusted net income per diluted share is expected to be approximately $2.36, reflecting a 9% decrease.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View YETI