Yeti's stock slides 11% after company's earnings and guidance lag estimates
By Ciara Linnane
Yeti said sales were hurt by a reluctance to spend on higher-priced items in its coolers & equipment segment
Yeti Holdings Inc.'s stock tumbled 11% early Thursday, after the maker of drinkware, coolers and outdoor products missed profit and sales estimates for the fourth quarter and offered soft guidance for 2024.
Austin, Texas-based Yeti (YETI) posted net income of $78.6 million, or 90 cents a share, for the quarter, after a loss of $27.7 million, or 32 cents a share, in the year-earlier period. Adjusted per-share earnings also came to 90 cents, below the 96-cent FactSet consensus.
Sales rose 16% to $519.8 million, also below the $536.0 million FactSet consensus.
Sales were buoyed by the drinkware category, which was up 12%, while its expansion outside the U.S. grew that business by 39%.
"Despite strong topline performance in these areas, our fourth quarter results were below our guidance, primarily as a result of more cautious and inconsistent spending on high-priced ticket items in our Coolers & Equipment category," CEO Matt Reintjes said in a statement.
For 2024, the company is expecting to achieve adjusted EPS of $2.45 to $2.50, while FactSet is expecting $2.68.
Direct-to-consumer sales rose 11% to $344.9 million in the quarter, led by drinkware sales. Wholesale channel sales rose 26% to $174.9 million.
Coolers & equipment sales rose 26% to $165 million.
In the first quarter of 2024, the company has made two acquisitions, adding to its bags and packs product family, and making a first move in cookware with a cast iron offering.
The company agreed to acquire backpack maker Mystery Ranch in late January, and agreed to acquire Butter Pat Industries to offer a cast iron product earlier that month.
The stock has gained 9% in the last 12 months, underperforming the S&P 500 , which has gained 20.6%.
-Ciara Linnane
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02-15-24 0746ET
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