Shares of YETI Holdings Inc. (YETI) jumped 5.51% in pre-market trading on Thursday, following the company's better-than-expected fourth quarter 2024 earnings report and an upbeat outlook for fiscal 2025, despite ongoing impacts from a product recall.

YETI, a leading manufacturer of premium outdoor products, reported Q4 2024 adjusted earnings of $1.00 per share, exceeding analyst estimates of $0.93 per share. The company's net sales increased by 5% year-over-year to $546.5 million, driven by growth in its Coolers & Equipment and Drinkware categories, although it narrowly missed Wall Street's expectations of $552 million.

The company's performance was impacted by a nearly two-year-old recall of certain soft coolers and gear cases, which resulted in higher-than-anticipated consumer participation rates during 2024. As a result, YETI increased its estimated recall expense reserve by $9.9 million, adversely affecting its gross margin and net income for the quarter.

Despite the recall headwinds, YETI's adjusted operating income rose 8% to $110.6 million, and its adjusted operating margin expanded by 10 basis points to 19.9%, reflecting the strength of its brand and operational execution.

Looking ahead, YETI provided an optimistic outlook for fiscal 2025, projecting adjusted sales growth of 5% to 7%, and adjusted earnings per share in the range of $2.90 to $2.95. The company cited ongoing product innovation, global expansion, and brand strength as key drivers for its anticipated growth, despite expecting some foreign exchange headwinds.