YETI Holdings (YETI -3.14%) held its fourth-quarter and fiscal-year 2024 earnings call on February 13, 2025. Despite competitive pressures and macroeconomic headwinds, YETI delivered solid growth and continues to expand its brand globally. Here are three key insights from the call for long-term investors.

International Growth Remains a Significant Opportunity

YETI continues to see impressive international growth, with sales outside the U.S. increasing 27% in the fourth quarter and 30% for the full year 2024. International business now accounts for 18% of total sales, up from 16% the previous year.

We saw another quarter of excellent growth internationally, with our business outside the U.S. increasing 27% to $109 million in Q4. All of our regions grew, with Australia and Europe continuing their exceptional double-digit growth. Our efforts to drive brand awareness, grow our distribution network, and roll out our omnichannel model are working. And we see significant runway ahead of us as we continue to capitalize on the global opportunity for YETI.

-- Michael James McMullen, Senior VP, CFO & Treasurer

The company is also expanding into Japan in 2025, which it sees as a foundational year for that market, with 2026 serving as the first full year of operations.

Product Innovation and Diversification Strategy Driving Growth

YETI's strategic diversification of its product portfolio is paying dividends, particularly in the Coolers & Equipment category, which grew 17% in Q4 and 14% for the full year.

In 2024, we meaningfully delivered on these capital allocation priorities with $200 million in announced share buybacks, representing roughly 6% of outstanding shares and the acquisition of Mystery Ranch and Butter Pat. These deals enabled the accelerated launch of YETI cast iron cookware and the limited release of the Bozeman backpack in 2024. This is what we mean when we talk about our capital allocation strategy driving innovation.

-- Matthew J. Reintjes, President, CEO & Director

YETI also acquired technology and intellectual property for developing a unique powered cooler system in Q4, which they believe will complement their existing hard cooler portfolio and represents another significant opportunity for future product innovation.

Strong Cash Generation and Strategic Capital Allocation

YETI's robust cash flow generation provides flexibility for targeted capital allocation. The company generated $220 million in free cash flow for 2024, allowing for strategic investments and stock buybacks.

We delivered over $200 million in free cash flow for the second year in a row, and we expect another strong year in 2025. This robust cash generation gives us the flexibility to pursue a targeted capital allocation strategy, which is centered around driving long-term sustainable growth and delivering value to shareholders through 3 key levers: investment in the business, accelerating innovation and building upon our share repurchase cadence started in 2024.

-- Matthew J. Reintjes, President, CEO & Director

YETI's board recently increased its share repurchase authorization by $350 million, bringing the total available to $450 million.

Looking Ahead

YETI's management expressed confidence in their strategic direction despite anticipated headwinds from foreign exchange rates and market dynamics. For 2025, they expect sales growth between 5% and 7%, with stronger performance in the second half of the year.

We expect full-year sales to increase between approximately 5% and 7% compared to fiscal 2024's adjusted net sales. With the growth of our international business and the recent strengthening of the U.S. dollar, we expect an approximately 100-basis-point headwind from FX in 2025.

-- Michael James McMullen, Senior VP, CFO & Treasurer

With continued focus on brand development, product innovation, omnichannel growth, and international expansion, YETI looks well positioned to continue expanding its global brand presence. As CEO Matt Reintjes emphasized, "Our compelling brand, diverse and growing product portfolio and global market opportunity position us well to execute our long-term growth potential."