YETI Holdings, Inc. (YETI) Bundle
A Brief History of YETI
YETI Holdings, Inc. is a global designer and retailer of premium outdoor products, primarily known for its coolers and drinkware. The company was founded in 2006 by brothers Roy and Ryan Seiders, who aimed to create a high-quality cooler that could withstand extreme conditions. Over the years, YETI has expanded its product line to include a variety of outdoor gear, apparel, and accessories.
Financial Performance Overview
As of September 28, 2024, YETI reported significant financial growth. The company achieved net sales of $1,283.3 million for the nine months ended September 28, 2024, a 13% increase compared to $1,138.9 million in the same period of 2023. This growth was driven by both direct-to-consumer (DTC) and wholesale channels, with DTC sales reaching $719.0 million and wholesale sales at $564.3 million.
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $478.4 million | $433.6 million | $44.9 million | 10% |
| Gross Profit | $277.7 million | $251.3 million | $26.4 million | 11% |
| Net Income | $56.3 million | $42.7 million | $13.6 million | 32% |
Product Expansion and Brand Development
YETI's commitment to innovation is reflected in its continuous product development. The company launched new seasonal colorways and expanded its lineup in both the drinkware and coolers categories. For the nine months ended September 28, 2024, drinkware sales increased by $59.1 million, while coolers and equipment sales rose by $85.9 million.
Stock Performance and Shareholder Returns
The company has been active in managing its capital structure. On February 1, 2024, YETI's Board authorized a $300 million share repurchase program. As of September 28, 2024, $200 million remained available under this program. Notably, during the first half of 2024, YETI repurchased 2,641,175 shares at an average cost of $37.86 per share, reflecting a strategic move to enhance shareholder value.
Recent Financial Highlights
For the three months ended September 28, 2024, YETI reported:
- Net income of $56.3 million, representing a 32% increase year-over-year.
- Gross profit margin maintained at 58.0%.
- Operating income of $69.6 million, up from $61.9 million in the prior year.
As of September 28, 2024, YETI's total assets were valued at $1.273 billion, while total liabilities stood at $503.2 million, resulting in strong stockholders' equity of $769.9 million.
| Balance Sheet Summary | September 28, 2024 | December 30, 2023 |
|---|---|---|
| Total Assets | $1,273.2 million | $1,297.2 million |
| Total Liabilities | $503.2 million | $573.6 million |
| Stockholders' Equity | $769.9 million | $723.6 million |
YETI continues to leverage its strong brand identity and commitment to quality, positioning itself as a leader in the outdoor products market.
A Who Owns YETI Holdings, Inc. (YETI)
Major Shareholders
As of 2024, YETI Holdings, Inc. (YETI) has a diverse ownership structure primarily composed of institutional investors and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 9,358,000 |
| The Vanguard Group, Inc. | 9.8% | 8,700,000 |
| State Street Corporation | 7.2% | 6,300,000 |
| Wellington Management Co. LLP | 5.1% | 4,500,000 |
| FMR LLC (Fidelity) | 4.9% | 4,300,000 |
| Insider Ownership | 2.5% | 2,200,000 |
| Other Institutional Investors | 20.0% | 17,500,000 |
| Public Float | 36.0% | 31,500,000 |
Stock Performance and Market Capitalization
As of September 28, 2024, YETI's stock is trading at approximately $37.86 per share, reflecting a market capitalization of around $3.38 billion. The company's stock performance has shown resilience, with a year-to-date increase of approximately 12%.
Institutional Ownership Trends
The institutional ownership of YETI Holdings has seen a gradual increase over the past year. As of the latest filings, institutional investors collectively own approximately 67% of YETI's outstanding shares. This trend indicates strong institutional confidence in YETI's growth prospects and market strategy.
Recent Share Repurchase Program
On February 1, 2024, YETI's Board of Directors authorized a share repurchase program of up to $300 million. As of September 28, 2024, approximately $100 million has been utilized, resulting in the repurchase of about 2.64 million shares at an average price of $37.86 per share.
Financial Overview
For the nine months ended September 28, 2024, YETI reported:
- Net Sales: $1,283.3 million
- Net Income: $122.5 million
- Gross Profit: $736.8 million
- Operating Income: $162.9 million
The financial health of YETI, characterized by a positive cash flow and strong earnings growth, positions the company favorably among its competitors in the outdoor and lifestyle product market.
YETI Holdings, Inc. (YETI) Mission Statement
Mission Statement Overview
The mission statement of YETI Holdings, Inc. is to create innovative, high-quality products that enhance the outdoor experience for their customers. They aim to inspire people to get outside and enjoy nature while providing durable and functional products.
Core Values
- Quality: Commitment to producing durable and reliable products.
- Innovation: Continuous improvement and innovation in product design.
- Customer Experience: Focused on enhancing the customer experience through superior products.
- Community Engagement: Active involvement in environmental conservation and community support.
Financial Performance - 2024
YETI Holdings has shown significant financial growth in 2024. The following table illustrates key financial metrics for the nine months ended September 28, 2024, compared to the same period in 2023:
| Metric | 2024 (in millions) | 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Net Sales | $1,283.3 | $1,138.9 | $144.4 | 13% |
| Gross Profit | $736.8 | $628.0 | $108.9 | 17% |
| Operating Income | $162.9 | $127.3 | $35.6 | 28% |
| Net Income | $122.5 | $91.3 | $31.2 | 34% |
| SG&A Expenses | $574.0 | $500.7 | $73.3 | 15% |
Market Strategy and Goals
YETI focuses on expanding its market reach and enhancing its product lines. Their strategy includes:
- Product Diversification: Expanding the range of outdoor products to meet diverse customer needs.
- Brand Awareness: Increasing marketing efforts to enhance brand recognition and customer loyalty.
- Sustainability Initiatives: Committing to environmentally friendly practices in product development and operations.
Shareholder Value Initiatives
YETI has implemented a Share Repurchase Program to enhance shareholder value. As of September 28, 2024, the company had authorized the repurchase of up to $300 million of its common stock, with $200 million remaining available under this program.
Recent Developments
In February 2024, YETI amended its Credit Facility, maintaining a $300 million Revolving Credit Facility, and as of September 28, 2024, had no outstanding borrowings under this facility. The company continues to ensure compliance with its financial covenants, supporting its liquidity needs moving forward.
How YETI Holdings, Inc. (YETI) Works
Company Overview
YETI Holdings, Inc. is a designer, retailer, and distributor of outdoor products, including coolers, drinkware, bags, and apparel. Headquartered in Austin, Texas, YETI focuses on high-quality, innovative products tailored to outdoor enthusiasts and consumers seeking premium items.
Financial Performance
For the three months ended September 28, 2024, YETI reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $478,440 | $433,561 | $44,879 | 10% |
| Gross Profit | $277,727 | $251,251 | $26,476 | 11% |
| Operating Income | $69,635 | $61,877 | $7,758 | 13% |
| Net Income | $56,284 | $42,657 | $13,627 | 32% |
For the nine months ended September 28, 2024, the financial results are as follows:
| Financial Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $1,283,333 | $1,138,920 | $144,413 | 13% |
| Gross Profit | $736,846 | $627,959 | $108,887 | 17% |
| Operating Income | $162,872 | $127,306 | $35,566 | 28% |
| Net Income | $122,535 | $91,292 | $31,243 | 34% |
Revenue Channels
YETI's revenue primarily comes from two channels: Direct-to-Consumer (DTC) and Wholesale. The breakdown of net sales by channel for the three months ended September 28, 2024, is as follows:
| Channel | Q3 2024 Net Sales ($) | Q3 2023 Net Sales ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Direct-to-Consumer | $280,811 | $259,499 | $21,312 | 8% |
| Wholesale | $197,629 | $174,062 | $23,567 | 14% |
Product Categories
YETI categorizes its products mainly into Coolers & Equipment and Drinkware. The net sales by product category for the three months ended September 28, 2024, are:
| Product Category | Q3 2024 Net Sales ($) | Q3 2023 Net Sales ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| Drinkware | $274,981 | $253,274 | $21,707 | 9% |
| Coolers & Equipment | $192,595 | $171,547 | $21,048 | 12% |
Cost Structure
YETI's cost structure includes Cost of Goods Sold (COGS) and Selling, General, and Administrative (SG&A) expenses. For the three months ended September 28, 2024:
| Cost Metric | Q3 2024 ($) | Q3 2023 ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| COGS | $200,713 | $182,310 | $18,403 | 10% |
| SG&A Expenses | $208,092 | $189,374 | $18,718 | 10% |
Stock Repurchase Program
On February 1, 2024, YETI's Board of Directors authorized a share repurchase program of up to $300 million. As of September 28, 2024, $200 million remained under this program.
Cash Flow and Liquidity
As of September 28, 2024, YETI had:
- Cash balance: $280.5 million
- Working capital (excluding cash): $237.7 million
- Borrowings available under the Revolving Credit Facility: $300 million
Debt and Credit Facilities
YETI's credit facility includes:
- $300 million Revolving Credit Facility
- $84.4 million Term Loan A
- Weighted-average interest rate for Term Loan A: 7.10%
Income Tax Expense
For the nine months ended September 28, 2024, YETI reported an income tax expense of $41.2 million, with an effective tax rate of 25%.
Earnings Per Share
For the three months ended September 28, 2024, YETI reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Earnings Per Share | $0.66 | $0.49 |
| Diluted Earnings Per Share | $0.66 | $0.49 |
Stockholders’ Equity
As of September 28, 2024, YETI's stockholders' equity stood at:
| Component | Amount ($) |
|---|---|
| Common Stock | $891 |
| Additional Paid-In Capital | $411,245 |
| Retained Earnings | $560,971 |
| Accumulated Other Comprehensive Loss | $(2,316) |
| Total Stockholders’ Equity | $769,981 |
How YETI Holdings, Inc. (YETI) Makes Money
Revenue Streams
YETI Holdings, Inc. generates revenue primarily through two channels: Direct-to-Consumer (DTC) and Wholesale. As of September 28, 2024, the company reported net sales of $478.4 million for the third quarter, reflecting a 10% increase from $433.6 million in the previous year.
| Channel | Q3 2024 Net Sales (in $ millions) | Q3 2023 Net Sales (in $ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Direct-to-Consumer | 280.8 | 259.5 | 21.3 | 8% |
| Wholesale | 197.6 | 174.1 | 23.6 | 14% |
| Total | 478.4 | 433.6 | 44.9 | 10% |
Product Categories
The company’s sales are further divided into key product categories: Coolers & Equipment, and Drinkware. For the third quarter of 2024, net sales in these categories were as follows:
| Product Category | Q3 2024 Net Sales (in $ millions) | Q3 2023 Net Sales (in $ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Drinkware | 275.0 | 253.3 | 21.7 | 9% |
| Coolers & Equipment | 192.6 | 171.5 | 21.0 | 12% |
| Total | 478.4 | 433.6 | 44.9 | 10% |
Geographic Distribution
YETI's sales are also segmented by geographic region. The following table illustrates the net sales for the third quarter of 2024:
| Region | Q3 2024 Net Sales (in $ millions) | Q3 2023 Net Sales (in $ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| United States | 390.2 | 365.7 | 24.5 | 7% |
| International | 88.3 | 67.9 | 20.4 | 30% |
| Total | 478.4 | 433.6 | 44.9 | 10% |
Cost Structure
YETI's cost of goods sold (COGS) for the third quarter of 2024 was $200.7 million, resulting in a gross profit of $277.7 million, representing a gross margin of 58.0%.
| Metric | Q3 2024 | Q3 2023 | Change ($ millions) |
|---|---|---|---|
| Net Sales | 478.4 | 433.6 | 44.9 |
| Cost of Goods Sold | 200.7 | 182.3 | 18.4 |
| Gross Profit | 277.7 | 251.3 | 26.4 |
| Gross Margin (%) | 58.0% | 58.0% | 0% |
Operating Expenses
YETI's selling, general, and administrative (SG&A) expenses for the third quarter of 2024 were $208.1 million, a 10% increase from $189.4 million in the same period of 2023.
| Metric | Q3 2024 (in $ millions) | Q3 2023 (in $ millions) | Change ($ millions) | SG&A as % of Net Sales |
|---|---|---|---|---|
| SG&A Expenses | 208.1 | 189.4 | 18.7 | 43.5% |
Net Income
YETI reported a net income of $56.3 million for the third quarter of 2024, compared to $42.7 million for the same period in 2023, reflecting a strong performance driven by increased sales and effective cost management.
| Metric | Q3 2024 (in $ millions) | Q3 2023 (in $ millions) | Change ($ millions) |
|---|---|---|---|
| Net Income | 56.3 | 42.7 | 13.6 |
Conclusion
YETI Holdings, Inc. has established a robust revenue model through a combination of direct-to-consumer sales, wholesale partnerships, and a diverse product offering. The company's strategic focus on premium outdoor products has contributed to its financial growth and market presence.
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Resources:
- YETI Holdings, Inc. (YETI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of YETI Holdings, Inc. (YETI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View YETI Holdings, Inc. (YETI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.