YETI Shares Surge with Impressive Q2 Results
YETI Holdings, Inc. experienced a significant 12.75% increase in its share value following the release of their second quarter financial results, which surpassed market expectations. This performance prompted the company to revise its full-year financial outlook upwards.
Revenue and Earnings Exceed Expectations
The Austin, Texas-based company reported a 9% year-over-year increase in revenue, reaching $463 million. This figure exceeded the analysts' forecast of $453.07 million. Furthermore, adjusted earnings per share (EPS) were noted at $0.70, outpacing the anticipated $0.64, showcasing the company's robust financial health and management.
Growth Driven by Coolers and International Sales
A significant driver of YETI's performance was the strong demand for its coolers and equipment, with adjusted sales in this category rising by 14% over the quarter. Additionally, the company witnessed remarkable growth internationally, with adjusted sales outside the United States increasing by 34%, underlining YETI's expanding global footprint.
"YETI delivered another great quarter, highlighted by our Coolers & Equipment category and continued growth of our business outside the United States," said Matt Reintjes, President and CEO.
Improved Margins and Cost Efficiency
Gross margin saw a notable improvement, expanding by 280 basis points to 57.7% on an adjusted basis. This was largely attributed to reduced freight and product costs, showcasing effective cost management strategies adopted by YETI.
Upgraded Full-Year 2024 Guidance
Following the strong quarterly performance, YETI has raised its full-year 2024 guidance. The company now anticipates an adjusted EPS range of $2.61 to $2.65, surpassing the previous estimate of $2.49 to $2.62 and the consensus estimate of $2.58. Revenue projections have also been increased to $1.81 billion to $1.84 billion, compared to the prior range of $1.80 billion to $1.83 billion.
This positive update reflects YETI’s continued growth ambitions and strategic focus on solidifying its market position both domestically and internationally, setting an example of effective financial planning and market adaptation.
