YETI Holdings, Inc. (“YETI” or the “Company”) (NYSE: YETI) today announced preliminary net sales results for the fourth quarter and fiscal year ended December 29, 2018 and updated fiscal year 2018 outlook.
Preliminary Fourth Quarter Fiscal 2018 as Compared to Fourth Quarter Fiscal 2017
- Net sales increased 19% to $241.2 million. Net sales in the direct-to-consumer (“DTC”) channel increased 45% to $110.5 million, and net sales for the wholesale channel increased 4% to $130.7 million.
- Drinkware net sales increased 24% to $143.5 million, and Coolers & Equipment net sales increased 10% to $91.2 million.
Preliminary Fiscal 2018 as Compared to Fiscal 2017
- Net sales increased 22% to $778.8 million. Net sales in the DTC channel increased 48% to $287.4 million, and net sales for the wholesale channel increased 10% to $491.4 million.
- Drinkware net sales increased 37% to $424.2 million, and Coolers & Equipment net sales increased 6% to $331.2 million.
Updated Fiscal 2018 Outlook
- Operating income as a percentage of net sales is now expected to be 12.9% to 13.1% (versus the previous outlook of 12.8% to 13.1%), as compared to 10.0% last year.
- Adjusted Operating Income as a percentage of net salesis now expected to be 15.7% to 15.9% (versus the previous outlook of 15.2% to 15.5%), as compared to 11.9% last year.
- Net income per diluted shareis now expected to be $0.67 to $0.69 (versus the previous outlook of $0.60 to $0.64), as compared to $0.19 last year, representing an increase of 253% and 263%, respectively. This assumes an effective tax rate of approximately 17.5% and approximately 83 million diluted weighted average number of shares outstanding.
- Adjusted Net Income per diluted shareis now expected to be $0.88 to $0.90 (versus the previous outlook of $0.79 to $0.82), as compared to $0.28 last year, representing an increase of 214% and 221%, respectively.
- Adjusted EBITDAis now expected to be $147 million to $149 million (versus the previous outlook of $141 million to $144 million), as compared to $97.5 million last year, representing an increase of 51% and 52%, respectively.
- Capital expendituresare still expected to be $21 million to $24 million, as compared to $42.2 million last year.
Matt Reintjes, President and Chief Executive Officer of YETI Holdings, Inc., commented, “We delivered outstanding performance in all aspects of our business during the fourth quarter and fiscal year 2018. Sales and operating margin soundly exceeded our expectations and as a result, we are raising our fiscal 2018 outlook. We are excited about the strong growth across categories and geographies and the multiple opportunities that lie ahead, which include accelerating brand awareness, delivering product innovation, driving our direct-to-consumer business and expanding our presence globally. We believe these initiatives combined with our operational excellence will continue to deliver strong and consistently profitable growth.”
Reported results are unaudited, preliminary, and reflect management’s estimates based on information available as of the date of this press release and is not a comprehensive statement of the Company’s financial results for the fourth quarter and year ended December 29, 2018. The Company’s actual results for fourth quarter fiscal 2018 and fiscal 2018 may differ from these preliminary results due to the completion of the Company’s financial closing procedures, final adjustments and audit process.
As previously announced, the Company will be participating at the 21st Annual ICR Conference held at the JW Marriott Orlando Grande Lakes in Orlando, FL, on Monday, January 14, 2019, with a fireside chat presentation at 1:00 pm Eastern Time. The audio portion of the fireside chat presentation will be webcast live over the internet and can be accessed at https://www.investors.yeti.com. An online archive will be available for a period of 90 days following the presentation.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under accounting principles generally accepted in the United States of America (“GAAP”). Please see “Note Regarding Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information” below for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures.
About YETI Holdings, Inc.
YETI is a rapidly growing designer, marketer, retailer, and distributor of a variety of innovative, branded, premium products to a wide-ranging customer base. Our brand promise is to ensure each YETI product delivers exceptional performance and durability in any environment, whether in the remote wilderness, at the beach, or anywhere else life takes you. We bring our products to market through a diverse and powerful omni-channel strategy, comprised of our select group of national and independent retail partners and our DTC channel. By consistently delivering high-performing products, we have built a following of engaged brand loyalists throughout the United States, Canada, Australia, and elsewhere, ranging from serious outdoor enthusiasts to individuals who simply value products of uncompromising quality and design. Our relationship with customers continues to thrive and deepen as a result of our innovative new product introductions, expansion and enhancement of existing product families, and multifaceted branding activities.
