Yeti Shares Slip Despite Q4 Earnings, Sales Beat

Yeti Holding's says direct-to-consumer channel net sales jumped 46% in the fourth quarter.
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Yeti Holdings  (YETI) - Get Report shares were falling Thursday following a premarket jump, as the outdoor products maker beat Wall Street's fourth-quarter earnings estimates.

Shares of the Austin, Tex. company were down 4.7% to $74.33 at last check. The stock is up over 117% over the last 12 months.

Yeti Holdings reported net income of $62.4 million, or 71 cents a share, compared with $4.7 million, or 5 cents a share, a year ago. 

Adjusted earnings came to 74 cents per share, handily beating FactSet's consensus of 62 cents. 

Sales totaled $375.8 million, up 26% from the year-ago figure of $297.6 million, and coming in ahead of FactSet's call for $353 million.

Direct-to-consumer (DTC) channel net sales increased 46% to $217.8 million, compared with $149 million a year ago, driven by strong performance in drinkware and coolers and equipment. 

Drinkware net sales increased 23% to $235.7 million, up from $192 million a year ago, while coolers and equipment net sales increased 31% to $134.3 million, compared with $102.3 million in the prior year quarter.

The DTC channel grew to 58% of net sales, the company said, compared with 50% in the prior year period.

Drinkware and coolers and equipment also bolstered net sales in the wholesale channel, which rose 6% to $158 million, compared with $148.7 million in the year ago quarter.

"Our fourth quarter results were highlighted by 26% net sales growth, record gross margin of nearly 60% and over $250 million in cash following an additional $100 million voluntary debt payment at the end of the quarter," Matt Reintjes, president and CEO, said in a statement.