Latest news with #MattReintjes
Business Mayor
10-05-2025
- Business
- Business Mayor
YETI's Bold Move Out Of China Amid Rising Tariff Tensions
The acquisition of Mystery Ranch has resulted in YETI's first joint product line called Ranchera, … More launched in March, expanding YETI's presence in outdoor, travel, and technical pack categories. Courtesy of YETI The recent tariff increases in the U.S. have been a headwind for YETI, as it estimated that a 145% total tariff rate on products sourced from China and a 10% reciprocal tariff rate on products from other countries would result in a gross tariff impact estimated at approximately $100 million (about 90% related to China). However, YETI plans to accelerate its growth despite tariffs through diversification of its supply chain, continued international expansion, and robust product development. The company has focused on diversifying its supply chain for the past two years, allowing it to be less reliant on China for its production. 'Our project started in 2023, is ahead of plan, and we now expect 90% of our U.S. drinkware capacity to be ex-China by the end of the year. For context, on a go-forward basis, we expect to have less than 5% of our total cost of goods related to products from China for the U.S. market,' said Matt Reintjes, CEO of YETI, in the recent earnings call. YETI's Growth Strategy Despite Tariffs 'YETI's three key focus areas in this unique moment in time are accelerating the pace of product innovation, materially transforming our supply chain, minimizing exposure to China, and delivering operating discipline to maintain our fortress balance sheet,' said Reintjes. The company posted a 3% revenue increase for the first quarter (Q1) of 2025, with the direct-to-consumer sales up 4% while the wholesale channel was up 1%. Product Evolution At YETI YETI continues to demonstrate its commitment to product innovation and category expansion across multiple fronts. 'For the year, we expect over 30 new product introductions versus 24 last year and a meaningful number of additional next-generation releases,' said Reintjes. Coolers and Equipment sales increased 17% in Q1, mainly from bags and coolers. YETI has invested in technological advancements to further its product development roadmap. The company has strategically acquired powered cooler technology, enabling the development of iceless portable refrigeration units that maximize storage space without sacrificing performance. 'A powered cooler means that you wouldn't need ice, so instead of space being filled up with ice to keep things cold, you actually have more space for storing goods,' explained Reintjes in an interview. Drinkware has been an ongoing category of growth, with annual sales last year up 7%. While drinkware sales in the first quarter of this year decreased by 4%, this was driven by the company's shift in its supply chain process and the comparison to the previous year's quarter growth of 13%. 'When we launched our first drinkware a decade ago in 2014, we recognized an opportunity to transform how people interact with their everyday vessels. We introduced performance, durability, and thoughtful design to a category that had previously lacked meaningful innovation,' said Reintjes. YETI is focused on diversifying its drinkware portfolio to create durable demand across multiple use cases, with new products launching in drinkware such as insulated sports jugs and pour-over coffee. Building on YETI's successful 2017 entry into the bags category, the company identifies significant growth potential in bags, packs, and luggage product lines that seamlessly integrate with the customers' everyday adventures. 'The Camino bag is my favorite product at YETI, and I think it's the simplest. It's the one that speaks the most to what YETI is all about, which is its versatility, usability, combined with thoughtful design,' said Reintjes. The recent acquisition of Mystery Ranch in 2004 has already borne fruit with the March debut of Ranchera, the company's first collaborative product line that strengthensYETI's foothold in the outdoor, travel, and technical pack markets. Mystery Ranch is a premier designer and manufacturer of durable load-bearing backpacks, bags, and pack accessories. YETI's Global Expansion Plans Fuel Growth The U.S. market represents 77% of total revenue for YETI, but with sales down 2% in the first quarter (Q1), the company plans to continue its strong momentum with international business where the growth was 22% in Q1. 'When we think about diversification, it really is in support of our continued global growth ambitions. So we think about that as the U.S. and North America, the UK and Europe, and the Asia Pacific with our incredibly strong Australia and New Zealand business today. And we think about the start of our business in Japan,' said Reintjes. YETI had its commercial launch in Japan earlier this year. 'I went to celebrate and be part of the commercial launch of YETI in Japan. So I started my trip in Tokyo with the first YETI product showcase with partners from all over Asia that would ultimately become YETI customers,' explained Reintjes. The company continues to experience strong performance in Europe, particularly Germany, the Netherlands, and the UK, and plans to expand further into Asia. YETI's international business is expected to grow 15-20% in 2025 which is in part why the company has focused on supply chain diversification. 'Our supply chain needs to be able to support our regional needs, and then it needs to be able to support our global ambitions,' said Reintjes. YETI's physical stores remain central to its digital-age strategy with direct-to-consumer sales up … More 4%.. Courtesy of YETI Future Growth For YETI 'Despite a more complex macro environment than we faced at the start of the year, we remain focused on execution and positioning YETI for long-term, sustainable growth by accelerating the pace of product innovation and materially transforming our supply chain to reduce reliance on China, while maintaining strong operating discipline to protect our fortress balance sheet,' stated Reintjes. The 2025 outlook was adjusted down as the company focuses on accelerating its supply chain diversification efforts, stating a modest growth of between 1-4% whereas the previous outlook was 5-7%. 'The primary driver of our revised top-line outlook for the year is the impact of inventory supply disruptions (due to tariffs) in connection with our accelerated supply chain diversification efforts,' said Mike McMullen, CFO at YETI, in its earnings call. The company explained that the U.S. business for 2025 should end up in the range of flat to down single-digits year-over-year, and the international business should grow by 15-20%. 'YETI's strong free cash flow generation and balance sheet provide us the flexibility to navigate this highly fluid trade environment. Our strategic supply chain diversification efforts are ahead of plan, and, as previously indicated, we are aggressively diversifying our sourcing out of China,' said Reintjes.
Forbes
10-05-2025
- Business
- Forbes
YETI's Bold Move Out Of China Amid Rising Tariff Tensions
The acquisition of Mystery Ranch has resulted in YETI's first joint product line called Ranchera, ... More launched in March, expanding YETI's presence in outdoor, travel, and technical pack categories. The recent tariff increases in the U.S. have been a headwind for YETI, as it estimated that a 145% total tariff rate on products sourced from China and a 10% reciprocal tariff rate on products from other countries would result in a gross tariff impact estimated at approximately $100 million (about 90% related to China). However, YETI plans to accelerate its growth despite tariffs through diversification of its supply chain, continued international expansion, and robust product development. The company has focused on diversifying its supply chain for the past two years, allowing it to be less reliant on China for its production. "Our project started in 2023, is ahead of plan, and we now expect 90% of our U.S. drinkware capacity to be ex-China by the end of the year. For context, on a go-forward basis, we expect to have less than 5% of our total cost of goods related to products from China for the U.S. market," said Matt Reintjes, CEO of YETI, in the recent earnings call. "YETI's three key focus areas in this unique moment in time are accelerating the pace of product innovation, materially transforming our supply chain, minimizing exposure to China, and delivering operating discipline to maintain our fortress balance sheet," said Reintjes. The company posted a 3% revenue increase for the first quarter (Q1) of 2025, with the direct-to-consumer sales up 4% while the wholesale channel was up 1%. YETI continues to demonstrate its commitment to product innovation and category expansion across multiple fronts. "For the year, we expect over 30 new product introductions versus 24 last year and a meaningful number of additional next-generation releases," said Reintjes. Coolers and Equipment sales increased 17% in Q1, mainly from bags and coolers. YETI has invested in technological advancements to further its product development roadmap. The company has strategically acquired powered cooler technology, enabling the development of iceless portable refrigeration units that maximize storage space without sacrificing performance. "A powered cooler means that you wouldn't need ice, so instead of space being filled up with ice to keep things cold, you actually have more space for storing goods," explained Reintjes in an interview. Drinkware has been an ongoing category of growth, with annual sales last year up 7%. While drinkware sales in the first quarter of this year decreased by 4%, this was driven by the company's shift in its supply chain process and the comparison to the previous year's quarter growth of 13%. "When we launched our first drinkware a decade ago in 2014, we recognized an opportunity to transform how people interact with their everyday vessels. We introduced performance, durability, and thoughtful design to a category that had previously lacked meaningful innovation," said Reintjes. YETI is focused on diversifying its drinkware portfolio to create durable demand across multiple use cases, with new products launching in drinkware such as insulated sports jugs and pour-over coffee. Building on YETI's successful 2017 entry into the bags category, the company identifies significant growth potential in bags, packs, and luggage product lines that seamlessly integrate with the customers' everyday adventures. "The Camino bag is my favorite product at YETI, and I think it's the simplest. It's the one that speaks the most to what YETI is all about, which is its versatility, usability, combined with thoughtful design," said Reintjes. The recent acquisition of Mystery Ranch in 2004 has already borne fruit with the March debut of Ranchera, the company's first collaborative product line that strengthensYETI's foothold in the outdoor, travel, and technical pack markets. Mystery Ranch is a premier designer and manufacturer of durable load-bearing backpacks, bags, and pack accessories. The U.S. market represents 77% of total revenue for YETI, but with sales down 2% in the first quarter (Q1), the company plans to continue its strong momentum with international business where the growth was 22% in Q1. "When we think about diversification, it really is in support of our continued global growth ambitions. So we think about that as the U.S. and North America, the UK and Europe, and the Asia Pacific with our incredibly strong Australia and New Zealand business today. And we think about the start of our business in Japan," said Reintjes. YETI had its commercial launch in Japan earlier this year. "I went to celebrate and be part of the commercial launch of YETI in Japan. So I started my trip in Tokyo with the first YETI product showcase with partners from all over Asia that would ultimately become YETI customers,' explained Reintjes. The company continues to experience strong performance in Europe, particularly Germany, the Netherlands, and the UK, and plans to expand further into Asia. YETI's international business is expected to grow 15-20% in 2025 which is in part why the company has focused on supply chain diversification. "Our supply chain needs to be able to support our regional needs, and then it needs to be able to support our global ambitions," said Reintjes. YETI's physical stores remain central to its digital-age strategy with direct-to-consumer sales up ... More 4%.. 'Despite a more complex macro environment than we faced at the start of the year, we remain focused on execution and positioning YETI for long-term, sustainable growth by accelerating the pace of product innovation and materially transforming our supply chain to reduce reliance on China, while maintaining strong operating discipline to protect our fortress balance sheet,' stated Reintjes. The 2025 outlook was adjusted down as the company focuses on accelerating its supply chain diversification efforts, stating a modest growth of between 1-4% whereas the previous outlook was 5-7%. "The primary driver of our revised top-line outlook for the year is the impact of inventory supply disruptions (due to tariffs) in connection with our accelerated supply chain diversification efforts,' said Mike McMullen, CFO at YETI, in its earnings call. The company explained that the U.S. business for 2025 should end up in the range of flat to down single-digits year-over-year, and the international business should grow by 15-20%. "YETI's strong free cash flow generation and balance sheet provide us the flexibility to navigate this highly fluid trade environment. Our strategic supply chain diversification efforts are ahead of plan, and, as previously indicated, we are aggressively diversifying our sourcing out of China," said Reintjes.
Yahoo
09-05-2025
- Business
- Yahoo
YETI Q1 Earnings Call: Supply Chain Shifts and Tariff Pressures Lead to Lower Profit Outlook
Outdoor lifestyle products brand (NYSE:YETI) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 2.9% year on year to $351.1 million. Its non-GAAP profit of $0.31 per share was 14.6% above analysts' consensus estimates. Is now the time to buy YETI? Find out in our full research report (it's free). Revenue: $351.1 million vs analyst estimates of $346.9 million (2.9% year-on-year growth, 1.2% beat) Adjusted EPS: $0.31 vs analyst estimates of $0.27 (14.6% beat) Adjusted EBITDA: $48.33 million vs analyst estimates of $42 million (13.8% margin, 15.1% beat) Management lowered its full-year Adjusted EPS guidance to $1.99 at the midpoint, a 32% decrease Operating Margin: 6.2%, down from 7.6% in the same quarter last year Free Cash Flow was -$89.2 million compared to -$114.3 million in the same quarter last year Locations: 23 at quarter end, up from 20 in the same quarter last year Market Capitalization: $2.45 billion YETI's first quarter results were shaped by strong growth in its Coolers & Equipment segment and continued momentum in international markets, as management emphasized on the earnings call. CEO Matt Reintjes credited new product launches, particularly in hard coolers and bags, as well as expanding direct-to-consumer and wholesale channels for driving the quarter's performance. However, the company also noted that drinkware sales in the U.S. faced headwinds due to a more challenging market and the impact of supply chain diversification efforts, which limited the pace of new product introductions. Looking ahead, management highlighted significant tariff-related challenges and ongoing supply chain transitions as the primary factors behind its reduced profit outlook for the year. CFO Mike McMullen explained that the accelerated move away from China manufacturing is creating short-term supply constraints and higher costs, while also lowering full-year adjusted EPS guidance. Reintjes acknowledged the uncertain consumer environment and stated, "2025 is a transition year," with a focus on mitigating near-term disruptions to set up for stronger performance in 2026. YETI's leadership attributed Q1 performance to innovation in coolers and bags, international expansion, and ongoing supply chain changes. The company's forward-looking commentary centered on mitigating tariff impacts and accelerating supply chain diversification. Coolers & Equipment Momentum: The Coolers & Equipment category led growth, with notable success from the Roadie 15 hard cooler and the launch of the Ranchero backpack. This segment benefited from sustained product innovation, which management believes will drive future expansion. International Expansion: International markets delivered double-digit growth, especially in Europe and Australia. The company began building a local team in Japan and expects this market to serve as a strategic entry point for further Asian expansion. Drinkware Category Reset: U.S. drinkware sales declined as the company navigated both a saturated product segment and disruptions from supply chain shifts. Management expects stabilization by the second half of the year, supported by upcoming product launches and increased diversification within the category. Supply Chain Diversification: Accelerated efforts to shift drinkware manufacturing out of China are underway, with management projecting that by year-end, less than 5% of U.S. cost of goods sold will originate from China. While this transition is expected to reduce tariff exposure in 2026, it is creating temporary inventory constraints and product launch delays in 2025. Operational Discipline: The company is prioritizing cost management, inventory reduction, and targeted capital expenditures. Initiatives include pausing some non-critical projects while increasing investment in supply chain transformation and product development capabilities, such as a new testing center in Asia and expanded design resources in the U.S. Management's outlook for 2025 is dominated by efforts to manage tariff exposure, supply chain disruptions, and changing consumer demand, all of which are expected to influence growth rates and margins throughout the year. Tariff Impact and Mitigation: Tariffs on China-sourced goods are projected to reduce gross margins by roughly 450 basis points, even after pricing actions and supplier cost-sharing. Management's mitigation strategy includes accelerating supply chain moves and cautious inventory buys. Innovation Pipeline and Launch Cadence: Over 30 new products are planned for release in 2025, though some launches will be delayed or limited in scope due to supply disruptions. The company expects higher innovation cadence to return in 2026 as supply chain transitions are completed. Consumer and Channel Trends: Cautious consumer sentiment and wholesale inventory management are contributing to a more unpredictable demand environment. Management is monitoring sell-through and adapting allocation strategies between direct-to-consumer and wholesale channels accordingly. Randy Konik (Jefferies) asked about the number of new product launches and future cadence; management confirmed 30 introductions for 2025 and continued focus on accelerating innovation in 2026. Brooke Roach (Goldman Sachs) questioned the outlook for drinkware and underperforming subcategories; CEO Matt Reintjes highlighted diversification efforts and expected stabilization, citing planned hydration and coffee-related products. Peter Benedict (Baird) pressed for details on tariff mitigation and pricing strategy; management reiterated a targeted approach to pricing and underscored supply chain relocation as the main lever. Jim Duffy (Stifel) probed supply chain diversification regions and operational execution; leadership detailed expansion into Southeast Asia and noted automation and partnerships to support quality and speed. Anna Glaessgen (B. Riley Securities) queried inventory allocation amid supply constraints; management replied that inventory would be allocated flexibly across channels based on demand and available stock, with some new products launching outside the U.S. first. Looking forward, the StockStory team will be monitoring (1) the pace and effectiveness of YETI's supply chain diversification away from China, (2) the launch and sell-through of new products, particularly in drinkware and bags, and (3) the trajectory of international sales as the company enters new markets like Japan. The impact of tariffs on margins and any signs of consumer demand recovery in the U.S. will also be key indicators of future performance. YETI currently trades at a forward P/E ratio of 11×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
08-05-2025
- Business
- Business Wire
YETI Reports First Quarter 2025 Results
AUSTIN, Texas--(BUSINESS WIRE)--YETI Holdings, Inc. ('YETI') (NYSE: YETI) today announced its financial results for the first quarter ended March 29, 2025. YETI reports its financial performance in accordance with accounting principles generally accepted in the United States of America ('GAAP') and as adjusted on a non-GAAP basis. Please see 'Non-GAAP Financial Measures,' and 'Reconciliation of GAAP to Non-GAAP Financial Information' below for additional information and reconciliations of the non-GAAP financial measures to the most comparable GAAP financial measures. First Quarter 2025 Highlights Net sales increased 3%, including an FX headwind of approximately 100 basis points EPS increased 11% to $0.20; Adjusted EPS decreased 9% to $0.31, which reflects an FX headwind of approximately $0.02 or 600 basis points of growth Matt Reintjes, President and Chief Executive Officer, commented, 'A strong start to 2025 showcased our growing global brand and broadening product portfolio alongside the operational execution that has been a hallmark of YETI. We exited the first quarter on our full year plan before the significant tariff disruption announced in April. As we now look at the changing macro and consumer environment, we remain confident that our durable balance sheet and strong gross and operating margins will allow us to continue to drive innovation, supply chain transformation and global expansion during this time.' Mr. Reintjes continued, 'YETI's strong free cash flow generation and balance sheet provides us the flexibility to navigate this highly fluid trade environment. Our strategic supply chain diversification efforts are ahead of plan, and, as previously indicated, we are aggressively diversifying our sourcing out of China. As a result, we expect that by the end of 2025, we will have limited exposure to future goods sourced from China. So that going forward, less than 5% of our total cost of goods will be related to products from China for the U.S. market.' First Quarter 2025 Results Sales and adjusted sales both increased 3% to $351.1 million, compared to $341.4 million during the same period last year. The 3% increase in both sales and adjusted sales included an FX headwind of approximately 100 basis points. Direct-to-consumer ('DTC') channel sales increased 4% to $196.2 million, compared to $187.8 million in the prior year quarter, primarily due to growth in Coolers & Equipment. Wholesale channel sales increased 1% to $154.9 million, compared to $153.6 million in the same period last year, primarily due to growth in Coolers & Equipment. Drinkware sales decreased 4% to $205.6 million, compared to $214.6 million in the prior year quarter. Drinkware performance was driven by growth in our international regions that was more than offset by a decline in our U.S. region. Drinkware performance was also impacted by a challenging compare of 13% growth in the prior year quarter, as well as the strategic shift to prioritize supply chain diversification over new innovation during the current year quarter. Coolers & Equipment sales increased 17% to $140.2 million, compared to $119.9 million in the same period last year, due to growth in both our U.S. and international regions, driven by strong performance in bags and hard coolers. Sales in the U.S. decreased 2% to $271.3 million, compared to $275.8 million in the prior year quarter. International sales increased 22% to $79.9 million, compared to $65.6 million in the prior year quarter. The 22% increase in international sales included an FX headwind of approximately 500 basis points. Gross profit increased 4% to $201.7 million, or 57.4% of sales, compared to $194.8 million, or 57.1% of sales, in the first quarter of 2024. The 30 basis points increase in gross margin was primarily due to lower product costs and the absence in the current year quarter of purchase accounting inventory step-up amortization, partially offset by lower mix of our Drinkware category and the unfavorable impact of foreign currency exchange rates. Adjusted gross profit increased 3% to $201.3 million, or 57.3% of adjusted sales, compared to $196.4 million, or 57.5% of adjusted sales, in the first quarter of 2024. The 20 basis points decrease in adjusted gross margin was primarily due to lower mix of our Drinkware category and the unfavorable impact of foreign currency exchange rates, partially offset by lower product costs. Selling, general, and administrative ('SG&A') expenses increased 7% to $180.1 million, compared to $169.0 million in the first quarter of 2024. As a percentage of sales, SG&A expenses increased 180 basis points to 51.3% from 49.5% in the prior year period. This increase was primarily due to higher general and administrative expenses and higher employee costs, including investments in headcount to support future growth. Adjusted SG&A expenses increased 6% to $166.2 million, compared to $156.8 million in the first quarter of 2024. As a percentage of adjusted sales, adjusted SG&A expenses increased 140 basis points to 47.3% from 45.9% in the prior year period. This increase was primarily due to higher general and administrative expenses and higher employee costs, including investments in headcount to support future growth. Operating income decreased 16% to $21.7 million, or 6.2% of sales, compared to $25.8 million, or 7.6% of sales during the prior year quarter. Adjusted operating income decreased 11% to $35.2 million, or 10.0% of adjusted sales, compared to $39.6 million, or 11.6% of adjusted sales during the same period last year. The 11% decrease in adjusted operating income included an FX headwind of approximately 600 basis points. Other income of $1.4 million compared to other expense of $4.1 million in the first quarter of 2024, primarily due to unrealized foreign currency gains related to intercompany balances in the current year quarter versus foreign currency losses on intercompany balances in the prior year quarter. Net income increased 5% to $16.6 million, or 4.7% of sales, compared to $15.9 million, or 4.6% of sales in the prior year quarter; Net income per diluted share increased 11% to $0.20, compared to $0.18 in the prior year quarter. Adjusted net income decreased 12% to $25.8 million, or 7.3% of adjusted sales, compared to $29.3 million, or 8.6% of adjusted sales in the prior year quarter; Adjusted net income per diluted share decreased 9% to $0.31, compared to $0.34 per diluted share in the prior year quarter. Adjusted net income per diluted share included an FX headwind of approximately $0.02 or 600 basis points of growth. Balance Sheet and Other Highlights Cash was $259.0 million, compared to $173.9 million at the end of the first quarter of 2024. Inventory decreased 9% to $330.5 million, compared to $363.9 million at the end of the prior year quarter. Total debt, excluding finance leases and unamortized deferred financing fees, was $77.0 million, compared to $81.2 million at the end of first quarter of 2024. Updating 2025 Outlook In Response to Tariff Impacts Mr. Reintjes continued, 'Our updated full year outlook reflects both our confidence in the business and our current assessment of anticipated headwinds this year, including the projected impact of tariffs and supply disruptions. Absent the tariffs, we believe YETI was set up for a strong year of delivering against our full year plan. In light of this, the focus still remains on our strategic priorities of growing the brand globally and driving innovation all supported by consistent operational discipline. Despite a more complex macro environment than we faced at the start of the year, we remain focused on execution and positioning YETI for long-term, sustainable growth by accelerating the pace of product innovation and materially transforming our supply chain to reduce reliance on China, while maintaining strong operating discipline to protect our fortress balance sheet. Alongside the strength of our balance sheet, our ability to generate cash is intact, even with the disruption from expected tariff impacts. We believe these factors, along with the durability of our brand, will enable us to successfully navigate 2025 and emerge even stronger in 2026.' For Fiscal 2025, a 53-week period, compared to a 52-week period in Fiscal 2024, YETI expects: Adjusted sales to increase between 1% and 4% (versus previous outlook of between 5% and 7%). The reduction in our adjusted sales outlook includes an approximately 300 basis point impact, primarily related to inventory supply disruptions in connection with the acceleration of our supply chain diversification efforts; Adjusted operating income as a percentage of adjusted sales of approximately 12.0% (versus previous outlook of 16.9%). This outlook reflects an approximate 450 basis point impact from higher tariff costs, and is inclusive of our ongoing mitigation efforts; An effective tax rate of approximately 26.0% (versus previous outlook of 24.5%; compared to 24.5% in the prior year period); Adjusted net income per diluted share between $1.96 and $2.02 (versus previous outlook of between $2.90 and $2.95). This outlook reflects the impact of higher tariff costs, as well as the impact of lower topline related to inventory supply disruptions; Diluted weighted average shares outstanding of approximately 83.7 million (versus previous outlook of 84.3 million); Capital expenditures of approximately $60 million (versus previous outlook of between $60 million and $70 million), primarily to support investments in technology, new product innovation, and our supply chain; and Free cash flow between $100 million and $125 million (versus previous outlook of $200 million). The decrease from our previous outlook reflects the impact on our topline from supply chain disruption, as well as higher tariff costs. Conference Call Details A conference call to discuss the first quarter of 2025 financial results is scheduled for today, May 8, 2025, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 800-717-1738 (international callers, please dial 646-307-1865) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at A replay will be available through May 22, 2025 by dialing 844-512-2921 (international callers, 412-317-6671). The accompanying access code for this call is 1152214. About YETI Holdings, Inc. Headquartered in Austin, Texas, YETI is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. By consistently delivering high-performing, exceptional products, we have built a strong following of brand loyalists throughout the world, ranging from serious outdoor enthusiasts to individuals who simply value products of uncompromising quality and design. We have an unwavering commitment to outdoor and recreation communities, and we are relentless in our pursuit of building superior products for people to confidently enjoy life outdoors and beyond. For more information, please visit Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted net sales, adjusted gross profit, adjusted gross margin, adjusted SG&A expenses, adjusted operating income, adjusted net income, adjusted net income per diluted share (which we also refer to as adjusted EPS), free cash flow as well as adjusted gross profit, adjusted SG&A expenses, adjusted operating income and adjusted net income as a percentage of adjusted net sales. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to measure our profitability and to evaluate our financial performance. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding the underlying operating performance of our business and are appropriate to enhance an overall understanding of our financial performance. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. YETI does not provide a reconciliation of forward-looking non-GAAP to GAAP financial measures because such reconciliations are not available without unreasonable efforts. This is due to the inherent difficulty in forecasting with reasonable certainty certain amounts that are necessary for such reconciliation, including in particular the impacts of product recalls and realized and unrealized foreign currency gains and losses reported within other expense. For the same reasons, we are unable to forecast with reasonable certainty all deductions and additions needed in order to provide a forward-looking GAAP financial measures at this time. The amount of these deductions and additions may be material and, therefore, could result in forward-looking GAAP financial measures being materially different or less than forward-looking non-GAAP financial measures. See 'Forward-looking statements' below. Forward-looking statements This press release contains ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements. Forward-looking statements include statements containing words such as 'anticipate,' 'assume,' 'believe,' 'can have,' 'contemplate,' 'continue,' 'could,' 'design,' 'due,' 'estimate,' 'expect,' 'forecast,' 'goal,' 'intend,' 'likely,' 'may,' 'might,' 'objective,' 'plan,' 'predict,' 'project,' 'potential,' 'seek,' 'should,' 'target,' 'will,' 'would,' and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events. For example, all statements made relating to future financial performance, capital expenditures, strategic acquisitions or share repurchases, and our expectations for opportunity, growth, investments, our cash generation abilities, the impact of tariffs, tariff mitigation efforts, inventory and supply chain disruptions, supply chain diversification and sourcing outside of China, new products and the expansion of our product portfolio, foreign exchange rates, consumer buying behavior, our position for the year ahead, our long-term focus, and our ability to return capital to our shareholders, including those set forth in the quotes from YETI's President and CEO, and the 2025 financial outlook provided herein, constitute forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that are expected and, therefore, you should not unduly rely on such statements. The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include but are not limited to: (i) economic conditions or consumer confidence in future economic conditions; (ii) our ability to maintain and strengthen our brand and generate and maintain ongoing demand for our products; (iii) our ability to successfully design, develop and market new products; (iv) our ability to effectively manage our growth; (v) our ability to expand into additional consumer markets, and our success in doing so; (vi) the success of our international expansion plans; (vii) our ability to compete effectively in the outdoor and recreation market and protect our brand; (viii) the level of customer spending for our products, which is sensitive to general economic conditions and other factors; (ix) problems with, or loss of, our third-party contract manufacturers and suppliers or an inability to obtain raw materials; (x) fluctuations in the cost and availability of raw materials, equipment, labor, and transportation and subsequent manufacturing delays or increased costs; (xi) risks associated with tariffs, including the implementation of new tariffs or additional or increased tariffs or other restrictions placed on foreign imports or any related counter-measures taken by other countries; (xii) our ability to accurately forecast demand for our products and our results of operations; (xiii) our relationships with our national, regional, and independent retail partners, who account for a significant portion of our sales; (xiv) the impact of natural disasters and failures of our information technology on our operations and the operations of our manufacturing partners; (xv) the integration and use of artificial intelligence; (xvi) our ability to attract and retain skilled personnel and senior management, and to maintain the continued efforts of our management and key employees; (xvii) the impact of our indebtedness on our ability to invest in the ongoing needs of our business; and (xviii) our ability to successfully execute our share repurchase program and its impact on stockholder value and the volatility of the price of our common stock. For a more extensive list of factors that could materially affect our results, you should read our filings with the United States Securities and Exchange Commission (the 'SEC'), including our Annual Report on Form 10-K for the year ended December 28, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 29, 2025, as such filings may be amended, supplemented or superseded from time to time by other reports YETI files with the SEC. These forward-looking statements are made based upon detailed assumptions and reflect management's current expectations and beliefs. While YETI believes that these assumptions underlying the forward-looking statements are reasonable, YETI cautions that it is very difficult to predict the impact of known factors, and it is impossible for YETI to anticipate all factors that could affect actual results. The forward-looking statements included here are made only as of the date hereof. YETI undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law. Many of the foregoing risks and uncertainties may be exacerbated by the global business and economic environment, including ongoing geopolitical conflicts. Solely for convenience, certain trademark and service marks referred to in this press release appear without the ® or ™ symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and service marks. YETI HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) March 29, 2025 December 28, 2024 March 30, 2024 ASSETS Current assets Cash $ 259,042 $ 358,795 $ 173,911 Accounts receivable, net 120,543 120,190 108,350 Inventory 330,515 310,058 363,919 Prepaid expenses and other current assets 57,116 37,723 57,005 Total current assets 767,216 826,766 703,185 Property and equipment, net 130,576 126,270 129,941 Operating lease right-of-use assets 89,046 78,279 77,171 Goodwill 72,308 72,557 72,894 Intangible assets, net 174,154 172,023 133,927 Other assets 4,566 10,225 2,686 Total assets $ 1,237,866 $ 1,286,120 $ 1,119,804 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 137,586 $ 158,499 $ 139,133 Accrued expenses and other current liabilities 110,050 128,210 97,359 Taxes payable 10,418 38,089 29,151 Accrued payroll and related costs 11,768 28,610 11,057 Operating lease liabilities 20,938 19,621 15,703 Current maturities of long-term debt 6,486 6,475 6,367 Total current liabilities 297,246 379,504 298,770 Long-term debt, net of current portion 71,401 72,821 77,379 Operating lease liabilities, non-current 84,290 73,586 75,398 Other liabilities 20,667 20,102 21,358 Total liabilities 473,604 546,013 472,905 Stockholders' Equity Common stock 896 892 889 Treasury stock, at cost (301,634 ) (281,587 ) (180,702 ) Additional paid-in capital 434,519 405,921 373,697 Retained earnings 630,734 614,125 454,291 Accumulated other comprehensive (loss) gain (253 ) 756 (1,276 ) Total stockholders' equity 764,262 740,107 646,899 Total liabilities and stockholders' equity $ 1,237,866 $ 1,286,120 $ 1,119,804 Expand YETI HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Three Months Ended March 29, 2025 March 30, 2024 Cash Flows from Operating Activities: Net income $ 16,609 $ 15,855 Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation and amortization 13,152 11,474 Amortization of deferred financing fees 161 163 Stock-based compensation 10,144 8,497 Deferred income taxes 5,708 (7 ) Impairment of long-lived assets — 2,025 Other (3,612 ) 3,117 Changes in operating assets and liabilities: Accounts receivable 170 (9,480 ) Inventory (20,220 ) (11,090 ) Other current assets (11,960 ) (10,425 ) Accounts payable and accrued expenses (63,009 ) (106,536 ) Taxes payable (27,783 ) (8,032 ) Other 344 765 Net cash used in operating activities (80,296 ) (103,674 ) Cash Flows from Investing Activities: Purchases of property and equipment (8,901 ) (10,644 ) Business acquisition, net of cash acquired — (36,164 ) Additions of intangibles, net (6,609 ) (11,197 ) Net cash used in investing activities (15,510 ) (58,005 ) Cash Flows from Financing Activities: Repayments of long-term debt (1,055 ) (1,055 ) Taxes paid in connection with employee stock transactions (1,542 ) (1,174 ) Payments of finance lease obligations (3,874 ) (586 ) Repurchase of common stock — (100,000 ) Net cash used in financing activities (6,471 ) (102,815 ) Effect of exchange rate changes on cash 2,524 (555 ) Net decrease in cash (99,753 ) (265,049 ) Cash, beginning of period 358,795 438,960 Cash, end of period $ 259,042 $ 173,911 Expand YETI HOLDINGS, INC. Supplemental Financial Information (Unaudited) (In thousands) Three Months Ended March 29, 2025 March 30, 2024 Net sales $ 351,128 $ 341,394 Product recall (1) — — Adjusted net sales $ 351,128 $ 341,394 Gross profit $ 201,722 $ 194,813 Transition costs (2) (395 ) 1,547 Adjusted gross profit $ 201,327 $ 196,360 Selling, general, and administrative expenses $ 180,051 $ 168,996 Non-cash stock-based compensation expense (10,144 ) (8,497 ) Long-lived asset impairment — (2,025 ) Organizational realignment costs (3) (994 ) (1,122 ) Stockholder matters (4) (2,760 ) — Transition costs (5) — (542 ) Adjusted selling, general, and administrative expenses $ 166,153 $ 156,810 Gross margin 57.4 % 57.1 % Adjusted gross margin 57.3 % 57.5 % SG&A expenses as a % of net sales 51.3 % 49.5 % Adjusted SG&A expenses as a % of adjusted net sales 47.3 % 45.9 % Expand _________________________ (1) Represents adjustments and charges associated with product recalls. (2) Represents a favorable true-up of estimated disposal costs in connection with the acquisition of Mystery Ranch, LLC for the three months ended March 29, 2025. Represents inventory disposal costs and inventory step-up costs in connection with the acquisition of Mystery Ranch, LLC for the three months ended March 30, 2024. (3) Represents employee severance costs in connection with strategic organizational realignments. (4) Represents advisory and legal fees related to a stockholder matter that resulted in a cooperation agreement signed in March 2025. (5) Represents transition costs in connection with the acquisition of Mystery Ranch, LLC, including third-party business integration costs. Expand Three Months Ended March 29, 2025 March 30, 2024 Operating income $ 21,671 $ 25,817 Adjustments: Non-cash stock-based compensation expense (1) 10,144 8,497 Long-lived asset impairment (1) — 2,025 Organizational realignment costs (1)(2) 994 1,122 Transition costs (3) (395 ) 2,089 Shareholder matters (4) 2,760 — Adjusted operating income $ 35,174 $ 39,550 Net income $ 16,609 $ 15,855 Adjustments: Non-cash stock-based compensation expense (1) 10,144 8,497 Long-lived asset impairment (1) — 2,025 Organizational realignment costs (1)(2) 994 1,122 Transition costs (3) (395 ) 2,089 Shareholder matters (4) 2,760 — Other (income) expense, net (5) (1,376 ) 4,101 Tax impact of adjusting items (6) (2,971 ) (4,369 ) Adjusted net income $ 25,765 $ 29,320 Net sales $ 351,128 $ 341,394 Adjusted net sales $ 351,128 $ 341,394 Operating income as a % of net sales 6.2 % 7.6 % Adjusted operating income as a % of adjusted net sales 10.0 % 11.6 % Net income as a % of net sales 4.7 % 4.6 % Adjusted net income as a % of adjusted net sales 7.3 % 8.6 % Net income per diluted share $ 0.20 $ 0.18 Adjusted net income per diluted share $ 0.31 $ 0.34 Weighted average shares outstanding used to compute adjusted net income per diluted share 83,543 87,157 Expand _________________________ (1) These costs are reported in SG&A expenses. (2) Represents employee severance costs in connection with strategic organizational realignments. (3) Represents a favorable true-up of estimated disposal costs in connection with the acquisition of Mystery Ranch, LLC for the three months ended March 29,2025. Represents transition costs, inventory step-up and inventory disposal costs, and third-party business integration costs in connection with the acquisition of Mystery Ranch, LLC for the three months ended March 30, 2024. (4) Represents advisory and legal fees related to a stockholder matter that resulted in a cooperation agreement signed in March 2025. (5) Other (income) expense, net substantially consists of realized and unrealized foreign currency gains and losses on intercompany balances that arise in the ordinary course of business. (6) Represents the tax impact of adjustments calculated at an expected statutory tax rate of 24.5% for both of the three months ended March 29, 2025 and March 30, 2024. Expand _________________________ (1) Represents adjustments and charges associated with product recalls. Expand YETI HOLDINGS, INC. Supplemental Financial Information Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Three Months Ended March 29, 2025 March 30, 2024 Net cash used in operating activities $ (80,296 ) $ (103,674 ) Less: Purchases of property and equipment (8,901 ) (10,644 ) Free cash flow $ (89,197 ) $ (114,318 ) Expand
