YETI Reports Third Quarter 2022 Results
YETI Holdings, Inc. (“YETI”) (NYSE: YETI) today announced its financial results for the third quarter ended October 1, 2022.
Matt Reintjes, President and Chief Executive Officer, commented, “We are very pleased with our stronger than expected 20% growth in the third quarter, which highlights the strength and diversity of our omni-channel distribution strategy. This performance included balanced sell-in and sell-through at wholesale, solid customer retention and new customer acquisition growth in our direct channel, and a strong contribution from our international expansion. Similar to prior quarters, our margin performance remained challenged given lingering supply chain disruptions, though as previously indicated, many of these pressures are showing signs of relief. We continue to expect that these improvements will primarily benefit our results in 2023.”
Mr. Reintjes continued, “As we enter the holiday season, we believe we are well positioned to win with consumers by leveraging our strong brand and innovative product portfolio. Our approach to winning the fourth quarter gifting occasions remains focused on what we do best—driving the desire for both the brand and product. To do this, we will build upon recent launches across coolers and drinkware products, expand engagement opportunities through our marketing channels, and drive relevant messaging that highlights the value and versatility of YETI products.”
For the Three Months Ended October 1, 2022
Sales increased 20% to $433.6 million, compared to $362.6 million during the same period last year.
*Direct-to-consumer (“DTC”) channel sales increased 15% to $227.4 million, compared to $197.1 million in the prior year quarter, led by strong performance in Drinkware. The DTC channel represented 52% of sales, compared to 54% in the prior year period.
*Wholesale channel sales increased 25% to $206.2 million, compared to $165.5 million in the same period last year, driven by Coolers & Equipment.
*Drinkware sales increased 17% to $239.0 million, compared to $205.0 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 sales increased 25% to $185.7 million, compared to $149.0 million in the same period last year, driven by strong performance in soft coolers, bags and hard coolers.
Gross profit increased 7% to $222.4 million, or 51.3% of sales, compared to $207.0 million, or 57.1% of sales, in the third quarter of 2021. The 580 basis point decrease in gross margin was primarily driven by higher inbound freight, higher product costs and the unfavorable impact of foreign currency exchange rates, partially offset by price increases.
Selling, general, and administrative (“SG&A”) expenses increased 11% to $153.9 million, compared to $138.3 million in the third quarter of 2021. As a percentage of sales, SG&A expenses decreased 260 basis points to 35.5% from 38.1% in the prior year period, primarily driven by non-variable expense leverage on higher sales, partially offset by higher variable expenses driven by higher distribution and logistics costs.
Operating income decreased slightly to $68.5 million, or 15.8% of sales, compared to $68.7 million, or 19.0% of sales during the prior year quarter.
Adjusted operating income decreased 1% to $73.3 million, or 16.9% of sales, compared to $74.2 million, or 20.5% of sales during the same period last year.
Other expense increased to $7.3 million compared to $1.2 million in the third quarter of 2021, primarily due to foreign currency losses related to intercompany balances.
Net income decreased 14% to $45.5 million, or 10.5% of sales, compared to $53.0 million, or 14.6% of sales in the prior year quarter; Net income per diluted share decreased 13% to $0.52, compared to $0.60 per diluted share in the prior year quarter.
Adjusted net income decreased 6% to $54.7 million, or 12.6% of sales, compared to $58.0 million, or 16.0% of sales in the prior year quarter; Adjusted net income per diluted share decreased 3% to $0.63, compared to $0.65 per diluted share in the prior year quarter.
details at: https://investors.yeti.com/news/news-details/2022/YETI-Reports-Third-Quarter-2022-Results/default.aspx