2023-08-10 09:55:12 ET
Yeti Holdings ( NYSE: YETI ) rose 21% on Thursday morning after its forecast for profit beat the estimate.
For the second quarter, non-GAAP EPS of $0.57 beat the average analyst estimate by $0.11. Revenue of $402.5M missed by $8.76M.
For the full year, YETI expects adjusted sales to increase between 4% and 5%, versus the previous outlook of between 3% and 5%. Adjusted operating income as a percentage of adjusted sales should come in between 15.5% and 16.0%, compared to the previous outlook of between 15.0% and 15.5%.
Adjusted net income per diluted share is expected between $2.23 and $2.32, versus the previous outlook of between $2.12 and $2.23, and compared to the $2.18 average analyst estimate.
“We continue to see attractive trends in the market with growing consumer demand for hydration solutions from coolers to drinkware, broadening colorways and an increasing focus on durable, reusable product,” Chief Executive Officer Matt Reintjes said in a statement.
“In hard coolers, we saw strong demand for our wheeled cooler offerings. On the soft cooler front, we remain firmly on-track to not only bring our full lineup of soft coolers and dry gear bags back to the market, but also expand some of these offerings to new sizes as we move into the fourth quarter.”
Recall impact
YETI took a hit earlier this year when it voluntarily recalled certain products.
“Our sales have also been materially adversely impacted by the stop sale of the affected products initiated during the first quarter of 2023,” the company said.
“We have developed solutions to address the potential safety concern of the affected products and intend to re-introduce and sell the redesigned products to consumers in the fourth quarter of 2023.”
The cooler maker narrowed its full year sales outlook to the higher end of its prior range, which includes an expected return to double-digit growth in the fourth quarter supported by the reintroduction and expansion of the products impacted by the recall.
“We have also increased our gross margin outlook for the year driven by our first half performance, supporting an increase in our bottom-line outlook. And finally, we remain disciplined in our capital allocation approach as our cash generation continues to strengthen our balance sheet,” Reintjes said.
YETI is down 7.4% in the past 12 months.
More on Yeti:
- Yeti Non-GAAP EPS of $0.57 beats by $0.11, revenue of $402.5M misses by $8.76M
- YETI slides after KeyBanc turns bearish on mid-term setup for the stock
- Yeti faces stiff competition as key summer season commences
For further details see:
Yeti jumps as year forecasts beat expectations amid recall