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Yeti Holdings (New York Stock Exchange:YETI) plunged in early trading Thursday after the company missed estimates in its fourth-quarter earnings report and issued cautious guidance.
Fourth quarter net sales increased 16% year over year during the quarter and adjusted net sales increased 6%. A withdrawal is booked favorably affected sales by $2.8 million in the quarter and unfavorably affected sales by $38.4 million in the prior-year quarter. Sales growth was highlighted by a 12% increase in Drinkware net sales and a 44% increase in international net sales.
The outdoor products seller said direct-to-consumer channel sales rose 11% to $344.9 million in the fourth quarter and wholesale channel sales rose 26% to $174.9 million. Refrigerator and equipment sales increased 26% to $165.0 million.
Adjusted gross profit, which excludes the impacts of withdrawal reserves in both the current and prior year quarters, was 60.2% of sales versus 54.3% of sales a year ago. EPS stood at $0.90 versus consensus of $0.96 and -$0.32 a year ago.
On the balance sheet, inventory decreased 9% to $337.2 million and Yeti (T+YETI) had a cash position of $439 million at the end of the quarter versus $234.7 million a year ago. anus.
Looking ahead, Yeti Holdings (YETI) sees full-year adjusted sales growth of 7% to 9% and earnings per share of $2.45 to $2.50 versus consensus of $2.67. .
CEO Outlook: “Given the uncertainties of the current environment, our outlook for 2024 balances a cautious approach with the current opportunities we see to drive growth through brand, product and geographic expansion. We expect to see a positive reaction to the innovation across our entire product portfolio in 2024. Sales are projected to grow across all of our categories, channels and geographies. We expect expansion in both adjusted gross margin and adjusted operating margin, as well as strong earnings per share growth, even as we continue to strategically invest in our teams and our business around the world.”
Yeti Holdings (YETI) shares fell 8.78% in pre-market trading at $43.97 following the earnings miss.
