YETI Holdings, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results

YETI Holdings, Inc., a global designer, retailer, and distributor of innovative outdoor products, has released its financial results for the fourth quarter and fiscal year ended December 28, 2024. The company reports its financial performance in accordance with GAAP and also provides non-GAAP measures for a clearer understanding of its operational performance. Financial Highlights For the fourth quarter of 2024, YETI reported a 5% increase in net sales, reaching $546.5 million, while adjusted net sales, excluding recall reserve adjustments, rose by 7% to $555.4 million. The company's EPS decreased by 30% to $0.63, but adjusted EPS saw an 11% increase to $1.00. Operating margin contracted by 380 basis points to 15.1%, whereas the adjusted operating margin expanded by 10 basis points to 19.9%.For the full fiscal year 2024, net sales increased by 10% to $1.83 billion, and adjusted net sales grew by 9% to $1.84 billion. Full-year EPS increased by 6% to $2.05, with adjusted EPS rising by 21% to $2.73. The company generated an operating cash flow of $261.4 million and free cash flow of $219.6 million. Business and Operational Highlights YETI's direct-to-consumer (DTC) channel sales increased by 7% in the fourth quarter, driven by growth in both Coolers & Equipment and Drinkware. The wholesale channel sales rose by 2%. Drinkware sales increased by 3%, while Coolers & Equipment sales saw a 9% rise, highlighting strong performance in bags and hard coolers.Geographically, U.S. net sales increased by 1%, while international net sales surged by 27%, reflecting the company's successful global expansion efforts. Strategic Initiatives and Corporate Developments YETI announced a $350 million increase to its share repurchase program, bringing the total authorization to $450 million. The company also completed the acquisition of Mystery Ranch, Ltd., Butter Pat Industries, LLC, and the capabilities, technology, and intellectual property to develop a unique powered cooler platform. Management's Perspective Matt Reintjes, President and CEO of YETI, highlighted the company's strong performance in 2024, emphasizing the expanding YETI brand, product innovation, and global expansion. He noted the company's ability to deliver excellent adjusted gross margin and operating margin expansion, along with strong free cash flow generation.Reintjes expressed optimism about the future, focusing on long-term strategic priorities of brand, product, and global expansion, despite a dynamic macro and competitive environment. Future Outlook For fiscal year 2025, YETI expects adjusted sales to increase between 5% and 7%, with adjusted operating income projected to rise between 5.5% and 7.5%. The company anticipates an effective tax rate of approximately 24.5% and adjusted net income per diluted share between $2.90 and $2.95. Capital expenditures are expected to be between $60 million and $70 million, primarily to support investments in technology, new product innovation, and the supply chain. Free cash flow is projected to be approximately $200 million.SEC Filing: YETI Holdings, Inc. [ YETI ] - 8-K - Feb. 13, 2025