YETI Q3 2023 Earnings Report
Key Takeaways
YETI's sales were flat year-over-year, but the direct-to-consumer channel saw a 14% increase. Gross margin expanded significantly, driven by lower inbound freight and product costs. The company maintains its full-year sales outlook and narrows adjusted EPS outlook to the high-end of the prior range.
Sales were flat at $433.6 million compared to the same period last year.
Direct-to-consumer (DTC) channel sales increased 14% to $259.5 million.
Gross profit increased 13% to $251.3 million, or 58.0% of sales.
Adjusted net income per diluted share decreased 5% to $0.60.
YETI
YETI
YETI Revenue by Segment
YETI Revenue by Geographic Location
Forward Guidance
YETI expects adjusted sales to increase approximately 4% and adjusted net income per diluted share of approximately $2.32 for 2023.
Positive Outlook
- Continuing to be innovative with our brand and our products
- Demonstrating value to consumers
- Committed to delivering our full year sales outlook
- Updating our full year adjusted EPS outlook to the high-end of our prior range
- Balance sheet and ability to generate strong cash flow will afford us a range of opportunities
Challenges Ahead
- Consumers who we expect will remain discerning with their spending through the holiday period
- Approximate 500 basis points unfavorable impact on our growth rate from the stop sale of the products affected by the recalls
- Effective tax rate of approximately 25.1% (compared to 22.8% in the prior year period)
- Adjusted net income per diluted share of approximately $2.32, reflecting a 2% decrease
- Adjusted SG&A deleverage, which is driven by the unfavorable topline impact from the stop sale of the products affected by the recalls as well as strategic investments
Revenue & Expenses
Visualization of income flow from segment revenue to net income