Yeti credited brand expansion, innovation and global growth for solid gains in the fourth quarter.
Net income was $53.2 million versus $78.6 million while diluted earnings per share were 63 cents versus 90 cents in the year-previous quarter. Adjusted for one-time events, net income was $84.6 million versus $78.8 million while diluted earnings per share were $1 compared to 90 cents in the year-before period, the company noted.
A Zacks Investment Research analyst consensus estimate called for adjusted diluted earnings per share of 93 cents and revenues of $554.1 million.
Yeti sales increased 5% to $546.5 million from the year-prior quarter. Recall reserves unfavorably impacted sales by $8.8 million in the fourth quarter, making for adjusted sales of $555.4 million, and favorably by $2.8 million in the prior-year quarter, the company indicated.
Direct-to-consumer channel sales increased 7% to $368.6 million because of growth in the Coolers & Equipment and Drinkware segments. With the effects related to the recall reserves excluded, DTC channel adjusted sales advanced 10% to $376.9 million.
Wholesale channel sales increased 2% to $178 million, primarily because of growth in Coolers & Equipment. With the effects related to the recall reserves excluded, wholesale channel adjusted sales increased 3% to $178.5 million. Drinkware sales increased 3% to $358.1 million, driven by the continued expansion and innovation in the Drinkware product offerings and new seasonal colorways. Coolers & Equipment sales increased 9% to $180.2 million driven by strong performance in bags and hard coolers. With the effects of the recall reserves excluded, Coolers & Equipment adjusted sales increased 17% to $189 million.
Net sales in the United States gained 1%, to $437.6 million, with adjusted sales, excluding the effects related to the recall reserves, increasing 4% to $446.4 million.
Operating income decreased to $82.5 million versus $98.2 million in the year-earlier quarter while adjusted operating income increased to $110.6 million versus $102.6 million.
For the full year, sales increased 10% to $1.83 billion from the prior year with recall adjusted sales increasing 9% to $1.84 billion.
Operating income increased 9% to $245.4 million while adjusted operating income increased 18% to $309.4 million.
Net income was $175.7 million versus $169.9 million while earnings per diluted share were $2.05 versus $1.94 in the year previous. Adjusted net income was $234 million versus $197 million while earnings per diluted share were $2.73 versus $2.25 in the year before.
Matt Reintjes, Yeti president and CEO said “Yeti’s full-year 2024 was capped off by a strong fourth quarter that showcased the expanding Yeti brand, growing product innovation and impactful global expansion. Our topline results show the proof points of our brand and product strength combined with operational execution to deliver excellent adjusted gross margin and adjusted operating margin expansion plus very strong free cash flow generation, resulting in a strong balance sheet. We delivered these results in a market that we believe continues to show signs of more discerning consumer buying behavior, more promotional activity, and heightened competition, particularly in the U.S. market.”
About the fourth quarter, Reintjes added, “The strong, broad-based demand for our innovation in our Coolers & Equipment category, specifically in hard coolers and bags, highlights that our innovation and brand resonates in this market. We believe this demand continues to showcase the long-term durability of the brand and product growth potential. Drinkware remains one of the more contested product categories, and our strategy of diversifying and innovating across our portfolio continues to produce results domestically and globally. Importantly, in both the fourth quarter and full year 2024, Yeti complemented the focus on our long-term strategic priorities of brand, product and global expansion with meaningful execution of capital allocation. For the year, we announced $200 million in share buybacks, acquired Mystery Ranch to support our targeted M&A strategy of supporting our innovation and product expansion, and in the fourth quarter acquired capabilities, technology, and IP that we believe will enable us to develop a unique powered cooler system. We are excited about how this technology will complement our portfolio and, much like Mystery Ranch, how this showcases the leveraging of our powerful balance sheet to support our future product innovation.”
