• Revenue: $1.84 billion for fiscal 2024, a 9% increase.
• Operating Income: $309 million, an 18% increase.
• Earnings Per Share (EPS): $2.73, a 21% increase.
• Free Cash Flow: $220 million generated in 2024.
• Fourth Quarter Revenue: $555 million, a 7% increase.
• Coolers & Equipment Sales: $189 million in Q4, a 17% increase.
• Drinkware Sales: $358 million in Q4, a 3% increase.
• Direct-to-Consumer Sales: $377 million in Q4, a 10% increase.
• International Sales: $109 million in Q4, a 27% increase.
• Gross Margin: 60.2% in Q4, flat year-over-year.
• Net Income: $85 million in Q4, a 7% increase.
• Cash Position: $359 million at the end of 2024.
• Inventory: $310 million, an 8% decrease year-over-year.
• 2025 Revenue Growth Outlook: 5% to 7% increase expected.
• 2025 EPS Outlook: $2.90 to $2.95, a 6% to 8% increase.

• Warning! GuruFocus has detected 2 Warning Sign with YETI.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• YETI Holdings Inc (NYSE:YETI) reported strong top and bottom line growth for 2024, driven by brand strength, product portfolio expansion, and global presence.
• The company achieved a cash position of approximately $360 million, supporting a strong balance sheet.
• YETI Holdings Inc (NYSE:YETI) delivered over $200 million in free cash flow for the second consecutive year.
• The company successfully diversified its supply chain, achieving its target of shifting 20% of global Drinkware capacity outside of China by the end of 2024.
• YETI Holdings Inc (NYSE:YETI) saw significant international growth, with sales outside the US increasing by 30% in 2024, representing 18% of total sales.

Negative Points

• YETI Holdings Inc (NYSE:YETI) faced heightened competition and more promotional activity in the US market, particularly affecting the Drinkware category.
• The company had to make an unfavorable recall reserve adjustment of $9.9 million related to a product recall from early fiscal 2023.
• YETI Holdings Inc (NYSE:YETI) anticipates macroeconomic pressures and FX headwinds to persist in 2025.
• The Drinkware market experienced higher levels of promotions and elevated competition, impacting US sales in the fourth quarter.
• The company expects a year-over-year decline in operating income in Q1 2025 due to the timing of discrete investments.

Q & A Highlights

Q: Can you provide details on the impact of the 10% China tariff and your exposure to other markets like Mexico? A: Matthew Reintjes, CEO: The 10% China tariff could have less than a $10 million impact for the year, which is not included in our outlook due to its fluid nature. We plan to manage this through cost optimization and potential price adjustments. Our exposure to Mexico is lower, and we are working with partners to offset any potential costs there.

Q: How do you approach M&A, and what is the expected contribution from recent acquisitions? A: Matthew Reintjes, CEO: The powered cooler technology acquired in Q4 is not expected to contribute to 2025 sales as it is in development. Our M&A strategy focuses on acquiring technologies or know-how that accelerate our existing product roadmap. We remain disciplined, ensuring acquisitions align with our vision for Yeti's expansion.

Q: What are the dynamics in the US Drinkware market, and what gives you confidence in growth for the second half of 2025? A: Michael McMullen, CFO: We expect US Drinkware to be flat in the first half of 2025, with growth resuming in the second half due to a robust lineup of innovations. The first half of 2024 had strong growth, creating a challenging comparison, but we are confident in our second-half product launches and supply chain diversification.

Q: How do you plan to manage the competitive and promotional environment in the Drinkware category? A: Matthew Reintjes, CEO: We continue to diversify our Drinkware offerings, which resonates with consumers. Our strategy involves targeted promotions to transition products and drive innovation. We focus on broadening use cases and maintaining our mid- and long-term growth strategy to navigate the competitive landscape.

Q: What is the outlook for international growth, and which regions are expected to drive this growth? A: Michael McMullen, CFO: We expect mid-teens growth internationally, with Europe and Australia leading the way. Europe, in particular, has significant market potential. We are also launching in Japan, with 2026 anticipated as the first full year of meaningful contribution from this market.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.