Yeti Holdings, Inc. reported net sales for its second quarter increased year over year by 45% to $357.7 million, compared to $246.9 million during the same period last year.
Yeti wholesale sales increased year over 41% to $160.8 million, driven by its Drinkware and Cooler & Equipment business units, according to the company, whose wholesale net sales were adversely impacted by the temporary store closures because of COVID-19. The company’s direct-to-consumer net sales increased year over year 48% to $196.9 million, compared to $133.0 million in the prior year quarter. The DTC channel grew to 55% of Yeti net sales, compared to 54% in the prior year period. Drinkware net sales increased 69% to $192.9 million compared to $114.3 million in the prior year quarter, primarily driven by what the company reported is continued expansion of drinkware product offerings, including the introduction of new colorways and sizes, and strong demand for customization. Coolers & Equipment net sales in the quarter increased 23% to $157.8 million compared to $128.6 million in year-earlier period. The gains were driven by strong performance in soft coolers, bags, outdoor living products, cargo and hard coolers, according to Yeti. Yeti’s gross profit increased 52% to $209.1 million, or 58.5% of net sales, compared to $137.5 million, or 55.7% of net sales, in the second quarter of 2020. The company said the increase in gross margin was primarily driven by a favorable mix shift to DTC, product cost improvements, and lower inventory reserves, partially offset by the unfavorable impact of the import duties and higher inbound freight. Adjusted operating income by Yeti in its second quarter increased 57% to $77.4 million, or 21.6% of net sales, compared to $49.3 million, or 20.0% of net sales, during the same period last year. Adjusted net income increased 68% to $60.0 million, or 16.8% of net sales, compared to $35.6 Matt Reintjes, Yeti president and CEO, said, “Net sales surged 45% during the period, driven by strong direct-to-consumer performance throughout the quarter, including Mother’s Day and Father’s Day; significant year-over-year recoveries in channels such as wholesale that experienced outsized impacts during the pandemic; and a more than three-fold gain in our international business. “We remain diligent and thoughtful as we contain and mitigate global supply chain volatility and cost pressures, with a focus on what we directly control – driving brand passion, consideration, and demand,” Reintjes added.
