Yeti Reports 5% Increase in Q4 Sales

By Tamara Parker • Thursday, February 13 10:23 • Permanent Link

Yeti Holdings, Inc. has reported its financial results for the fourth quarter and fiscal year ended December 28, 2024. In the fourth quarter of 2024, net sales increased by 5%, reaching $546.5 million, with adjusted net sales, which exclude recall reserve adjustments, increasing by 7% to $555.4 million. This growth was driven by a 7% increase in direct-to-consumer (DTC) channel sales and a 2% increase in wholesale channel sales. Drinkware sales increased by 3% to $358.1 million, while coolers & equipment sales saw a significant 9% increase to $180.2 million.

However, the operating margin contracted by 380 basis points to 15.1%, with adjusted operating margin expanding by 10 basis points to 19.9%. Despite a 30% decrease in earnings per share (EPS) to $0.63, the adjusted EPS increased by 11% to $1.00. The company recorded an unfavorable $9.9 million adjustment related to the recall reserves established in fiscal 2022.

For the full fiscal year 2024, net sales increased by 10% to $1,829.9 million, with adjusted net sales, excluding recall reserve adjustments, increasing by 9% to $1,838.7 million. Drinkware sales increased by 7% to $1,094.2 million, and coolers & equipment sales saw a substantial 17% increase to $698.6 million. Net sales in the U.S. increased by 7% to $1,490.5 million, while international net sales surged by 31% to $339.4 million.

Gross profit for the fiscal year increased by 13% to $1,063.3 million, with gross margin expanding by 120 basis points to 58.1%. Operating income increased by 9% to $245.4 million, or 13.4% of sales, with adjusted operating income increasing by 18% to $309.4 million, or 16.8% of adjusted sales.

Notably, the company announced a $350 million increase to its share repurchase program and provided a fiscal year 2025 outlook, expecting adjusted operating margin expansion and strong earnings growth.

These results reflect Yeti's strong performance and strategic initiatives, including product innovation and global expansion, despite a challenging market environment. The market has reacted to these announcements by moving the company's shares 0.1% to a price of $37.96. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.