YETI Holdings Q3 Earnings Top Estimates

YETI Holdings Q3 Earnings Top Estimates
  • YETI Holdings Inc YETI reported third-quarter FY22 sales growth of 20% year-on-year to $433.56 million, beating the consensus of $414.50 million.
  • Net sales from the Direct-to-consumer channel increased 15% Y/Y, the Wholesale channel rose 25%, Drinkware sales gained 17%, and Coolers & Equipment rose 25%.
  • Adjusted EPS of $0.63 beat the analyst consensus of $0.58.
  • Gross profit increased 7% Y/Y to $222.4 million, and gross margin contracted 580 basis points to 51.3%.
  • The operating margin contracted 320 basis points to 15.8%, and operating income for the quarter was $68.5 million.
  • Selling, general, and administrative expenses increased 11% to $153.9 million.
  • The company held $77.8 million in cash and equivalents as of October 1, 2022.
  • Inventory at the end of Q3 grew 65% to $439.4 million.
  • Outlook: YETI expects sales to increase approximately 16% (prior view 15%-17%).
  • The company sees adjusted EPS of $2.36 (prior view $2.34-$2.46), reflecting a 9% decrease Y/Y, and against the consensus of $2.37.
  • Price Action: YETI shares are trading higher by 19.31% at $36.20 on the last check Thursday.
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