YETI Holdings Inc Reports Mixed 2023 Results Amid Challenges and Growth
Net Sales Growth: Fourth quarter net sales increased by 16%, with adjusted net sales up by 6%.
International Expansion: International net sales soared by 44%, with adjusted international net sales up by 39%.
Earnings Per Share (EPS): Fourth quarter EPS stood at $0.90, marking a significant recovery from the previous year's loss per share of $0.32.
Annual Performance: Full-year net sales grew by 4%, with a notable 88% increase in EPS to $1.94.
Balance Sheet Strength: Cash position surged by 87% to $439 million, with inventory levels decreasing by 9%.
Capital Allocation: YETI announced a $300 million share repurchase program and provided a positive fiscal year 2024 outlook.
On February 15, 2024, YETI Holdings Inc (NYSE:YETI) released its 8-K filing, detailing its financial results for the fourth quarter and fiscal year ended December 30, 2023. The report reveals a mix of challenges and growth, with the company navigating cautious consumer spending and achieving significant milestones in its Drinkware business and international markets.
YETI Holdings Inc, known for its premium outdoor and recreation products, reported a 16% increase in fourth-quarter net sales, reaching $519.8 million. The growth was driven by a 12% rise in Drinkware net sales and a robust 44% increase in International net sales. Adjusted EPS for the quarter grew by 15% to $0.90. Despite these gains, the company acknowledged that the results fell short of guidance, primarily due to cautious spending on high-priced items in the Coolers & Equipment category.
For the full year, YETI's net sales increased by 4%, with an 88% surge in EPS to $1.94. However, adjusted EPS saw a 5% decline to $2.25. The company's cash position significantly strengthened, with an 87% increase to $439 million, and inventory levels decreased by 9%.
President and CEO Matt Reintjes commented on the results:
"In the fourth quarter, we saw strength in a number of key areas of our business. Our Drinkware business grew 12%, pushing the category to over $1 billion in annual sales. Also, our international expansion continued in the fourth quarter, with our business outside the US growing 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."
Reintjes also highlighted the company's strategic moves, including two category expansion acquisitions and the share repurchase program, which underscore YETI's commitment to growth and shareholder value.
Looking ahead, YETI provided a positive outlook for fiscal year 2024, expecting adjusted sales to increase between 7% and 9%, with adjusted operating income as a percentage of adjusted sales of approximately 16.0%. The company anticipates an effective tax rate of approximately 25.3% and adjusted net income per diluted share between $2.45 and $2.50.
YETI's financial achievements and strategic initiatives reflect its resilience in a challenging market and its commitment to delivering value to shareholders. The company's focus on product innovation, brand expansion, and international growth positions it well for continued success in the outdoor and recreation market.
Explore the complete 8-K earnings release (here) from YETI Holdings Inc for further details.
This article first appeared on GuruFocus.
