YETI Holdings, Inc. YETI second-quarter 2023 sales fell 4% Y/Y to $402.56 million, missing the consensus of $411.64 million, unfavorably impacted by $24.5 million due to a recall reserve adjustment.
Adjusted EPS of 0.57 beat the street estimate of $0.47.
DTC channel sales increased by 3% to $393.4 million, wholesale channel sales decreased by 6% to $312.0 million, drinkware sales increased by 6% to $423.7 million, and coolers & equipment sales fell 12% to $261.0 million.
Adjusted gross profit increased by $15.2 million to $234.3 million (gross margins of 54.9% increased 270 basis points).
Adjusted operating income decreased 9% to $67.1 million (margins 15.7%, down 190 basis points).
The company held $223.1 million in cash at the end of the second quarter 2023.
"We continue to thoughtfully invest in the business to drive growth and brand expansion, while maintaining a healthy level of profitability. Finally, we have further strengthened our balance sheet with a growing cash balance and an expanded credit facility, providing increased flexibility across our capital allocation priorities," Matt Reintjes, President and Chief Executive Officer, commented.
2023 Outlook Raised: Yeti raises FY23 adjusted EPS outlook to $2.23-$2.32, versus $2.19 estimate (Prior View: $2.12-$2.23).
Yeti Raises FY23 sales growth outlook to 4% - 5% (Prior View: 3% - 5%).
Price Action: YETI shares were up 19.5% at $47.30 at the time of publication Thursday.
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