Financial Data and Key Metrics Changes - YETI reported a 9% increase in sales to $1.84 billion for the full year 2024, with operating income growing 18% to $309 million and earnings per share increasing 21% to $2.73 [46][63] - In Q4, sales increased 7% to $555 million, driven by strong performance in Coolers & Equipment, which grew 17% [48][49] - The company generated $220 million in free cash flow and ended the year with a cash position of approximately $360 million [10][64] Business Line Data and Key Metrics Changes - Coolers & Equipment sales in Q4 increased 17% to $189 million, with notable growth in hard coolers and bags [49][52] - Drinkware sales grew 3% to $358 million in Q4, with a slight decline in the U.S. market but over 20% growth internationally [52][54] - Direct-to-consumer (DTC) sales increased 10% to $377 million in Q4, representing 68% of total sales [55] Market Data and Key Metrics Changes - International sales grew 27% to $109 million in Q4, with full-year international sales increasing 30% to $339 million, representing 18% of total sales [57][58] - The U.S. Drinkware market experienced higher promotional activity and competition, impacting overall performance [53][112] Company Strategy and Development Direction - YETI's strategy focuses on brand strength, product innovation, and expanding its global presence, with significant investments in new product categories and acquisitions [6][10] - The company aims to diversify its supply chain, with a target of 80% of U.S. Drinkware capacity located outside of China by the end of 2025 [13][72] - YETI plans to continue its capital allocation strategy, including share repurchases and investments in innovation [10][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities despite anticipated macro pressures and foreign exchange headwinds in 2025 [14][78] - The company expects full-year sales growth of 5% to 7% in 2025, with stronger growth anticipated in the second half of the year [65][70] - Management highlighted the importance of maintaining brand loyalty and expanding into new markets, including Japan [39][71] Other Important Information - YETI completed three acquisitions in 2024, including Mystery Ranch and Butter Pat, which are expected to enhance product offerings [11][47] - The company is focused on maintaining a healthy balance sheet while pursuing growth opportunities [64][78] Q&A Session Summary Question: Impact of tariffs on outlook - Management indicated that a 10% tariff on goods from China would have less than a $10 million impact on the year, viewing it as manageable [82][84] Question: Contribution of recent acquisitions to sales - The powered cooler technology acquired is expected to be in development and not contribute to sales in 2025, but it aligns with YETI's product roadmap [88][90] Question: U.S. Drinkware growth dynamics - Management expects U.S. Drinkware to be flat in the first half of 2025 but anticipates a return to growth in the second half due to a robust innovation pipeline [96][100] Question: Competitive environment in Drinkware - Management noted increased promotional intensity but believes their diversified Drinkware strategy is resonating with consumers [112][114] Question: Innovation outlook over the next 12-24 months - Management emphasized a strong innovation pipeline and significant opportunities in the bags category, indicating a focus on new product development [117][118]

Core Insights - Yeti reported revenue of $555.37 million for the quarter ended December 2024, reflecting a year-over-year increase of 6.9% and a slight revenue surprise of +0.23% over the Zacks Consensus Estimate of $554.08 million [1] - The company's EPS for the quarter was $1.00, up from $0.90 in the same quarter last year, resulting in an EPS surprise of +7.53% compared to the consensus estimate of $0.93 [1] Revenue Breakdown - International revenues reached $108.93 million, exceeding the three-analyst average estimate of $106.13 million, with a year-over-year growth of +27.5% [4] - U.S. revenues were reported at $437.61 million, slightly below the average estimate of $452.23 million, showing a modest year-over-year increase of +0.8% [4] Sales by Category - Net sales for Coolers & Equipment were $180.16 million, compared to the average estimate of $183.11 million, marking a year-over-year increase of +9.2% [4] - Drinkware net sales amounted to $358.08 million, slightly below the average estimate of $362.97 million, with a year-over-year growth of +3.5% [4] - Other category sales were reported at $8.30 million, falling short of the estimated $9.58 million, representing a decline of -5.6% year-over-year [4] Sales by Channel - Wholesale channel sales were $177.95 million, below the average estimate of $187.83 million, but reflecting a year-over-year increase of +1.7% [4] - Direct-to-consumer sales reached $368.59 million, slightly above the average estimate of $367.96 million, with a year-over-year growth of +6.9% [4] Stock Performance - Yeti's shares have returned +2.8% over the past month, compared to a +3.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Yeti reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and up from $0.90 per share a year ago, representing an earnings surprise of 7.53% [1] - The company posted revenues of $555.37 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.23% and increasing from $519.79 million year-over-year [2] - Over the last four quarters, Yeti has consistently surpassed consensus EPS estimates and revenue estimates [2] Future Outlook - The immediate price movement of Yeti's stock will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $366.68 million, and for the current fiscal year, it is $2.89 on revenues of $1.97 billion [7] - The estimate revisions trend for Yeti is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Products industry, to which Yeti belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]

Fourth Quarter and Fiscal 2024 Highlights SAFE HARBOR STATEMENT Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward Looking Statements This presentation, as well as other written or oral communications made from time to time by us, may contain certain "forward-loo ...

Financial Performance - Fourth quarter net sales increased 5% to $546.5 million; adjusted net sales increased 7% to $555.4 million[6][7] - Full year net sales increased 10% to $1,829.9 million; adjusted net sales increased 9% to $1,838.7 million[16] - Fourth quarter EPS decreased 30% to $0.63; adjusted EPS increased 11% to $1.00[14][15] - Full year EPS increased 6% to $2.05; adjusted EPS increased 21% to $2.73[24] - International net sales increased 27% to $108.9 million in the fourth quarter; U.S. net sales increased 1% to $437.6 million[8] - Net sales for the three months ended December 28, 2024, increased to $546.54 million, up 5.2% from $519.79 million for the same period in 2023[47] - Adjusted net sales for the three months ended December 28, 2024, were $555.37 million, an increase from $516.97 million in the same period of 2023[53] - Direct-to-consumer sales for the three months ended December 28, 2024, were $368,588, up 6.9% from $344,859 in the same period last year[62] Profitability Metrics - Gross margin expanded 120 basis points to 58.1% for the full year; adjusted gross margin expanded 170 basis points to 58.6%[19][20] - The company reported a gross margin of 59.7% for the three months ended December 28, 2024, slightly down from 60.6% in the prior year[53] - Operating income for the three months ended December 28, 2024, was $82,504, a decrease of 15.9% compared to $98,152 for the same period in 2023[57] - Adjusted operating income for the twelve months ended December 28, 2024, increased to $309,371, up 17.6% from $262,785 in 2023[57] - The percentage of operating income as a percentage of net sales for the three months ended December 28, 2024, was 15.1%, down from 18.9% in the same period last year[57] Cash Flow and Capital Management - Operating cash flow for the full year was $261.4 million; free cash flow was $219.6 million[4] - The company plans to generate approximately $200 million in free cash flow for Fiscal 2025[34] - Free cash flow for the twelve months ended December 28, 2024, was $219,554, down from $235,270 in the previous year[66] Shareholder Returns - The company announced a $350 million increase to its share repurchase program and completed $200 million in share buybacks during the year[1][25] - YETI's Board of Directors approved a $350 million increase to the Share Repurchase Program, with $450 million remaining available[33] - During Fiscal 2024, YETI repurchased approximately 5.1 million shares of its common stock under accelerated share repurchase agreements totaling $200 million[32] Future Outlook - For Fiscal 2025, YETI expects adjusted sales to increase between 5% and 7%, reflecting an FX headwind of approximately 100 basis points[28] - Adjusted operating income is projected to increase between 5.5% and 7.5%, with an FX headwind of approximately 350 basis points[28] - Adjusted net income per diluted share is anticipated to be between $2.90 and $2.95, reflecting a 6% to 8% increase, impacted by an FX headwind of approximately $0.10[28] - The effective tax rate for Fiscal 2025 is expected to be approximately 24.5%, consistent with the prior year[28] Acquisitions and Investments - The company acquired Mystery Ranch and technology for a unique powered cooler system to support product innovation[4][25] - YETI acquired technology and intellectual property for a powered cooler platform for $32.5 million[34] - Capital expenditures are expected to be between $60 million and $70 million, primarily for technology and new product innovation[34] Balance Sheet Highlights - Total current assets decreased to $826.77 million as of December 28, 2024, from $914.41 million a year earlier[49] - Cash and cash equivalents at the end of the period were $358.80 million, down from $438.96 million at the end of the previous year[51] - Total liabilities decreased to $546.01 million as of December 28, 2024, from $573.58 million in 2023[49] - Stockholders' equity increased to $740.11 million as of December 28, 2024, compared to $723.61 million in the previous year[49] Product Recall Adjustments - The reserve for estimated product recall expenses was adjusted by $9.9 million due to higher than anticipated consumer recall participation rates[30] - The company experienced product recall adjustments totaling $9,938 for the three months ended December 28, 2024[62] Net Income Analysis - Net income for the twelve months ended December 28, 2024, was $175.69 million, compared to $169.89 million in 2023, reflecting a growth of 3.4%[51] - The company reported a net income of $53,154 for the three months ended December 28, 2024, a decrease of 32.4% from $78,593 in the prior year[57] - Adjusted net income for the twelve months ended December 28, 2024, was $233,962, an increase of 18.8% compared to $196,987 in 2023[57] - The adjusted net income per diluted share for the three months ended December 28, 2024, was $1.00, compared to $0.90 in the same period last year[57]

Core Viewpoint - YETI Holdings, Inc. is set to report its fourth-quarter fiscal 2024 results on February 13, with expectations of earnings growth and revenue improvement compared to the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for fiscal fourth-quarter earnings is 93 cents per share, reflecting a growth of 3.3% from 90 cents in the same quarter last year [2]. - The consensus revenue estimate is $554.1 million, indicating a year-over-year improvement of 6.6% [2]. Group 2: Product and Market Expansion - YETI's fourth-quarter results are anticipated to benefit from the expansion of its drinkware and cooler product lines, including new launches such as pitchers, flasks, shot glasses, and cooler accessories, which likely performed well during the holiday season [3]. - The company's international business is experiencing growth, particularly in Europe and Australia, driven by increased brand awareness and an expanding retail presence [4]. Group 3: Sales Channel Performance - The revenue estimates for various sales channels are as follows: Direct-to-Consumer (DTC) at $368 million (up 6.7%), wholesale at $188 million (up 7.4%), drinkware at $363 million (up 4.9%), and coolers & equipment at $183 million (up 10.9%) [5]. - While gross margins are expected to remain flat due to freight surcharges and mix shifts, YETI benefits from lower inbound freight costs and product cost optimizations [5]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for YETI Holdings, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6].

Core Viewpoint - The market anticipates Yeti (YETI) will report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Yeti is expected to post quarterly earnings of $0.93 per share, reflecting a year-over-year increase of 3.3% [3]. - Revenues are projected to reach $554.08 million, which is a 6.6% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.52% over the last 30 days, indicating a bearish sentiment among analysts regarding Yeti's earnings prospects [4][10]. - The current Earnings ESP for Yeti stands at -1.17%, suggesting a potential earnings miss [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Yeti exceeded the expected earnings of $0.67 per share by delivering $0.71, resulting in a surprise of 5.97% [12]. - Over the past four quarters, Yeti has beaten consensus EPS estimates three times [13]. Conclusion - Despite the potential for an earnings beat, Yeti does not currently appear to be a strong candidate for exceeding earnings expectations, and investors should consider other influencing factors before making investment decisions [14][16].

As the stock market begins 2025 on choppy trading patterns, investors continue to be hard-pressed to find true value stocks that can surmount a broader market downturn. YETI (NYSE: YETI ), in my view, isWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017 ...

YETI Holdings, Inc. (NYSE: YETI ) is an iconic higher-end brand that focuses on delivering premium products at premium prices. Based on fundamental value criteria that I use to screen for good companies falling within a range ofI've been investing for over 7 years with a focus on long term wealth creation through value growth investing, value investing, and dividend investing. I'm not a financial advisor or financial planner. I do not have a formal background in finance, I have a B.S. in Biology with a conc ...

2024 hasn't been a great year for YETI Holdings (NYSE: YETI ) as the company is down over 24% YTD while the S&P 500 is up nearly 25%.Analyst’s Disclosure: I/we have a beneficial long position in the shares of YETI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking A ...