YETI Holdings, Inc. (“YETI”) (NYSE: YETI) today announced its financial results for the fourth quarter and fiscal year ended January 2, 2021. The 14-week fourth quarter and 53-week fiscal year ended January 2, 2021 are compared to the 13-week fourth quarter and 52-week fiscal year ended December 28, 2019.
Matt Reintjes, President and Chief Executive Officer, commented, “Our remarkable fourth quarter and full year performance reflects the ongoing vitality and relevance of our brand with customers as well as the incredible dedication of and strong execution by our global employees. Our fourth quarter results were highlighted by 26% net sales growth, record gross margin of nearly 60% and over $250 million in cash following an additional $100 million voluntary debt payment at the end of the quarter. This strong quarter culminated a year that saw YETI cross the $1 billion in net sales milestone driven by 19% topline growth. Our revenue growth combined with expanding margins generated over 75% adjusted EPS growth – significantly ahead of our initial outlook during an unprecedented year of disruptions and challenges.”
For the Three Months Ended January 2, 2021 (14 Week Period)
Net sales increased 26% to $375.8 million, compared to $297.6 million during the same period last year.
*Direct-to-consumer (“DTC”) channel net sales increased 46% to $217.8 million, compared to $149.0 million in the prior year quarter, driven by strong performance in both Drinkware and Coolers & Equipment. The DTC channel grew to 58% of net sales, compared to 50% in the prior year period.
*Wholesale channel net sales increased 6% to $158.0 million, compared to $148.7 million in the same period last year, driven by both Drinkware and Coolers & Equipment.
*Drinkware net sales increased 23% to $235.7 million, compared to $192.0 million in the prior year quarter, primarily driven by the continued expansion of our Drinkware product offerings, including the introduction of new colorways and sizes, and strong demand for customization.
*Coolers & Equipment net sales increased 31% to $134.3 million, compared to $102.3 million in the same period last year, driven by strong performance in soft coolers, hard coolers, outdoor living products, and cargo.
Gross profit increased 39% to $224.8 million, or 59.8% of net sales, compared to $162.3 million, or 54.5% of net sales, in the fourth quarter of Fiscal 2019. The 530 basis point increase in gross margin was primarily driven by a favorable mix shift to our DTC channel, as well as product cost improvements, decreased tariffs, and lower inbound freight.
Selling, general, and administrative (“SG&A”) expenses decreased 5% to $143.4 million, compared to $150.4 million in the fourth quarter of Fiscal 2019. Excluding the impact of the $40.7 million one-time non-cash stock-based compensation expense related to pre-IPO performance-based awards recognized in the prior period, SG&A expenses as a percentage of net sales increased 130 basis points. Variable expenses increased 140 basis points, driven by our faster growing and higher gross margin DTC channel, which grew to 58% of net sales during the period. Excluding the impact of the aforementioned one-time non-cash stock-based compensation expense, non-variable expenses leveraged 10 basis points on higher net sales, including leverage on higher expenditures in areas such as employee costs and distributions expenses, partially offset by deleverage on higher marketing expenses.
Operating income increased to $81.4 million, or 21.7% of net sales, compared to $12.0 million, or 4.0% of net sales, during the prior year quarter, which included the impact of the aforementioned one-time stock-based compensation expense.
Net income increased to $62.4 million, or 16.6% of net sales, compared to $4.7 million, or 1.6% of net sales, in the prior year quarter, which included the impact of the aforementioned one-time stock-based compensation expense; Net income per diluted share increased to $0.71, compared to $0.05 per diluted share in the prior year quarter.
For the Twelve Months Ended January 2, 2021 (53 Weeks)
Net sales increased 19% to $1,091.7 million, compared to $913.7 million in the prior year.
*DTC channel net sales increased 50% to $580.9 million, compared to $386.1 million in the prior year period, driven by both Coolers & Equipment and Drinkware. The DTC channel grew to 53% of net sales, compared to 42% in the prior year.
*Wholesale channel net sales decreased 3% to $510.9 million, compared to $527.6 million in the same period last year, primarily driven by Coolers & Equipment. The decline in wholesale channel net sales was mainly driven by the effects of the COVID-19 pandemic on temporary store closures during the first half of the year.
*Drinkware net sales increased 19% to $628.6 million, compared to $526.2 million in the prior year period, primarily driven by the continued expansion of our Drinkware product offerings, including the introduction of new colorways and sizes, and strong demand for customization.
*Coolers & Equipment net sales increased 21% to $446.6 million, compared to $368.9 million in the same period last year. The strong performance was driven by growth in soft coolers, hard coolers, outdoor living products, and cargo.
Gross profit increased 32% to $628.8 million, or 57.6% of net sales, compared to $475.3 million, or 52.0% of net sales, in the prior year. The 560 basis point increase in gross margin was primarily driven by a favorable mix shift to our DTC channel as well as product cost improvements, lower inbound freight, and decreased tariffs.
Selling, general, and administrative (“SG&A”) expenses increased 8% to $414.6 million, compared to $385.5 million in the prior year. Excluding the impact of the $40.7 million one-time non-cash stock-based compensation expense related to pre-IPO performance-based awards recognized in the prior year, SG&A expenses as a percentage of net sales increased 30 basis points. Variable expenses increased 210 basis points, driven by our faster growing and higher margin DTC channel, which grew to 53% of net sales during the period. Excluding the impact of the aforementioned one-time non-cash stock-based compensation expense, non-variable expenses leveraged 180 basis point on higher net sales, including leverage on higher expenditures in areas such as employee costs, non-cash stock-based compensation expense, and marketing expenses, partially offset by deleverage on higher distribution costs.
Operating income increased 139% to $214.2 million, or 19.6% of net sales, compared to $89.8 million, or 9.8% of net sales, during the prior year, which included the impact of the aforementioned stock-based compensation expense.
Net income increased 209% to $155.8 million, or 14.3% of net sales, compared to $50.4 million, or 5.5% of net sales, in the prior year, which included the impact of the aforementioned stock-based compensation expense; Net income per diluted share increased 204% to $1.77, compared to $0.58 per diluted share in the prior year.
https://shop-eat-surf.com/2021/02/yetis-sales-boom-in-q4/