YETI (YETI) Q3 2024 earnings summary

Executive summary

• Net sales increased 10% year-over-year to $478.4 million in Q3 2024, with strong growth across all product categories, channels, and geographies, including 30% international growth for the fourth consecutive quarter.

• EPS rose 35% to $0.66; adjusted EPS up 18% to $0.71, reflecting robust earnings growth.

• Product innovation and expansion, including new drinkware, barware, bags, and entry into cast iron cookware, drove strong performance.

• The company remains on track to deliver its full-year top and bottom-line outlook, with a focus on intentional consumer buying in Q4.

• Supply chain diversification advanced, with production starting at a second drinkware facility outside China and plans for a third.

Financial highlights

• Q3 gross profit increased 11% to $279 million, with gross margin at 58.2%; operating income rose 13% to $79 million (16.6% margin).

• Net income climbed 32% to $56.3 million; adjusted net income margin at 12.6%.

• Year-to-date EPS of $1.74 is up nearly 30% versus the prior year; nine-month net sales up 13% to $1.28 billion.

• Inventory increased 8% to $370 million; cash position at $280.5 million at quarter-end.

• SG&A expenses rose 10–11% in Q3, mainly due to higher employee and marketing costs, representing 41.7% of sales.

Outlook and guidance

• Full-year 2024 adjusted net sales expected to increase ~9% over 2023, at the high end of prior guidance.

• Adjusted gross margin target for 2024 is 58.5%, up from 56.9% last year.

• Adjusted operating margin expected at 16.5%, up 90 basis points year-over-year.

• Adjusted EPS guidance raised to ~$2.65, representing 18% growth.

• Free cash flow outlook remains $150–$200 million; capex expected at $50 million.