YETI Holdings, Inc. today released its first-quarter financial results for the period ending April 3, 2021. YETI had an exceptional start to the year, with first quarter net sales growth of 42 percent, fuelled by continued strong demand for the brand throughout the time, according to Matt Reintjes, President and Chief Executive Officer. Gross margin expansion drove a 700-basis-point rise in operating margin for the period, resulting in a more than three-fold increase in earnings per share. “Building on our excellent financial results in the first quarter, we are focusing on investments that will boost our potential growth through global product and channel expansion, creative marketing, and expanding digital capabilities, including enhanced data analytics,” Mr. Reintjes concluded. We believe that these efforts will not only promote a deep link between our brand and customers, both online and in a direct, personal way as the world reopens more completely, but will also help our long-term, sustainable growth plans”. “After a good start to 2021, we are improving both our full year net sales and earnings per share outlooks to 20% and 22% rise, respectively, versus the prior year,” Mr. Reintjes concluded. The YETI momentum, which has been on display since 2020 and will continue into 2021, demonstrates the brand’s excitement and the importance of our product range as customers continue to engage in the important growth in active, outdoor lifestyles. We believe we are in a strong position to continue to create and develop consumer demand for the brand now and in the future.
- As compared to the same time last year, net sales rose by 42 percent to $247.6 million.
- Net revenues in the direct-to-consumer (“DTC”) channel grew 59 percent to $126.8 million from $79.6 million in the previous quarter, owing to good results in both Coolers & Equipment and Drinkware. The direct-to-consumer channel rose to 51 percent of net revenue, up from 46 percent the year before.
- Coolers & Equipment and Drinkware drove a 27 percent rise in wholesale channel net sales to $120.8 million, compared to $94.8 million in the same timeframe last year.
- Drinkware net sales grew 32% to $148.9 million in the most recent quarter, compared to $112.6 million the previous quarter, owing to the continued expansion of our Drinkware product ranges, which included the launch of new colorways and sizes, as well as strong demand for customization.
- Hard coolers, soft coolers, outdoor living items, bags, and cargo drove a 57 percent rise in net sales to $93.5 million from $59.5 million in the same timeframe last year, owing to strong results in hard coolers, soft coolers, outdoor living products, bags, and cargo.
Gross profit rose by 57% to $145.2 million, or 58.6% of net sales, in the first quarter of 2020, compared to $92.5 million, or 53% of net sales in the previous quarter. A favourable mix change to our DTC channel, commodity cost changes, lower inbound freight, and lower tariffs all contributed to the 560 basis point rise in gross margin. Operating income rose by 148% to $40.0 million, or 16.2% of net sales, from $16.2 million, or 9.3% of net sales, in the previous quarter.