AUSTIN, Texas - YETI Holdings, Inc. (NYSE: YETI) delivered robust first-quarter results, surpassing analyst expectations with a significant increase in earnings per share (EPS) and solid revenue growth.
The company reported an adjusted EPS of $0.34, which was $0.10 higher than the $0.24 consensus estimate. Revenue also beat forecasts, coming in at $341.39 million against the expected $333.81 million.
The outdoor and recreation products manufacturer experienced a 13% surge in net sales compared to the same quarter last year, driven by a balanced, double-digit growth across its wholesale and direct-to-consumer channels.
The company's international sales notably jumped by 32%, while U.S. sales grew by 9%. YETI's President and CEO, Matt Reintjes, attributed the strong performance to the brand's expansion and innovative product offerings in both the Drinkware and Coolers & Equipment categories.
Investors reacted positively to the news, with YETI's stock price climbing by 9%. The driver behind this surge was the company's higher-than-expected first-quarter adjusted EPS and revenue, coupled with an optimistic full-year earnings outlook.
YETI's gross margin expanded by 360 basis points to 57.1%, with an adjusted gross margin increase of 450 basis points to 57.5%, mainly due to lower inbound freight costs and reduced product costs. Operating income soared by 71% to $25.8 million, and adjusted operating income surged by 82% to $39.6 million, reflecting the company's operational efficiency and profitability.
Looking ahead, YETI maintains its full-year 2024 sales outlook and has raised its full-year EPS outlook. The company forecasts adjusted sales to grow between 7% and 9%, with an adjusted operating income margin between 16.0% and 16.5%.
The adjusted EPS guidance for the full year is set between $2.49 and $2.62, with the midpoint of $2.555 exceeding the analyst consensus of $2.49. The company's effective tax rate is anticipated to be around 25.3%, with capital expenditures of approximately $60 million earmarked for technology investments and new product innovation.
Reintjes expressed confidence in the company's strategic direction, citing ongoing investments to drive the YETI brand and global expansion. "We remain focused on strategic investments to drive the YETI brand, product innovation, channel growth, and global expansion," he said.
The company's financial health is further underscored by its balance sheet, with cash reserves increasing to $173.9 million and a $100 million accelerated share repurchase agreement completed during the quarter, reflecting strong shareholder returns.
YETI's first-quarter achievements and positive guidance set a strong foundation for continued growth in 2024, as the company leverages innovation and market expansion to drive its performance.
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