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Dec 28, 2019
YETI Q4 2019 Earnings Report
YETI's Q4 2019 financial performance reflected strong net sales growth and gross margin expansion, but was impacted by one-time stock-based compensation expense.
Key Takeaways
YETI reported a 23% increase in net sales for the fourth quarter of 2019, driven by growth in both DTC and wholesale channels. Gross margin expanded by 150 basis points, primarily due to cost improvements and a favorable shift in channel mix. However, operating income and net income decreased due to a significant one-time non-cash stock-based compensation expense.
Net sales increased by 23% to $297.6 million compared to the same period last year.
Direct-to-consumer (DTC) channel net sales increased by 35% to $149.0 million.
Gross margin expanded by 150 basis points to 54.5% of net sales.
Net income decreased by 81% to $4.7 million, impacted by a one-time non-cash stock-based compensation expense.
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 expects net sales to increase between 13.0% and 15.0% for fiscal year 2020.
Positive Outlook
- Net sales to increase between 13.0% and 15.0% compared to Fiscal 2019.
- Strong growth across both channels and led by the DTC channel.
- Operating income as a percentage of net sales between 15.3% and 15.6%.
- Adjusted operating income as a percentage of net sales between 16.3% and 16.6%, reflecting margin expansion of 70 to 100 basis points, driven by higher gross margin.
- Adjusted EBITDA between $202.1 million and $207.9 million, or between 19.6% and 19.8% of net sales, reflecting 18% to 21% growth.
Challenges Ahead
- An effective tax rate of approximately 25.0%.
- Net income per diluted share is now expected to be between $1.24 and $1.29, reflecting 112% to 122% growth.
- Adjusted net income per diluted share between $1.34 and $1.39, reflecting 26% to 30% growth.
- Diluted weighted average shares outstanding of 87.7 million.
- Capital expenditures between $30 million and $35 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income