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YETI Reports Second Quarter 2021 Results 08/05/2021 Net Sales Increased 45 % Gross Margin Expanded 280 Basis Points EPS Increased to $ 0.63 from $ 0.38 Adjusted EPS Increased to $ 0.68 from $ 0.41 Raises 2021 Outlook AUSTIN , Texas -- ( BUSINESS WIRE ) -- YETI Holdings , Inc. ( " YETI " ) ( NYSE : YETI ) today announced its financial results for the second quarter ended July 3 , 2021 . 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 . Matt Reintjes , President and Chief Executive Officer , commented , " Demand and passion for the YETI brand remained robust during the second quarter . Net sales surged 45 % during the period , driven by strong direct - to - consumer performance throughout the quarter including Mother's Day and Father's Day , significant year - over - year recoveries in channels such as wholesale that experienced outsized impacts during the pandemic , and a more than three - fold gain in our international business . This topline performance combined with better - than - planned operating margins fueled 66 % earnings per share growth for the quarter . " Mr. Reintjes concluded , " The ongoing momentum in the business continues to be supported by the incredible execution of our team and many brand partners . We remain diligent and thoughtful as we contain and mitigate global supply chain volatility and cost pressures , with a focus on what we directly control - driving brand passion , consideration , and demand . Our conviction and discipline in these areas support our increased full year net sales and earnings per share outlooks for the year . " For the Three Months Ended July 3 , 2021 Net sales increased 45 % to $ 357.7 million , compared to $ 246.9 million during the same period last year . • Direct - to - consumer ( " DTC " ) channel net sales increased 48 % to $ 196.9 million , compared to $ 133.0 million in the prior year quarter , driven by strong performance in both Drinkware and Coolers & Equipment . The DTC channel grew to 55 % of net sales , compared to 54 % in the prior year period . • Wholesale channel net sales increased 41 % to $ 160.8 million , compared to $ 113.9 million in the same period last year , driven by both Drinkware and Coolers & Equipment . In the second quarter of 2020 , wholesale channel net sales were adversely impacted by the temporary store closures due to COVID - 19 . • Drinkware net sales increased 69 % to $ 192.9 million , compared to $ 114.3 million in the prior year quarter , primarily driven by the continued expansion of our Drinkware product offerings , including the introduction of new colorways and sizes , and strong demand for customization . • Coolers & Equipment net sales increased 23 % to $ 157.8 million , compared to $ 128.6 million in the same period last year , driven by strong performance in soft coolers , bags , outdoor living products , cargo and hard coolers . Gross profit increased 52 % to $ 209.1 million , or 58.5 % of net sales , compared to $ 137.5 million , or 55.7 % of net sales , in the second quarter of 2020. The 280 basis point increase in gross margin was primarily driven by a favorable mix shift to our DTC channel , product cost improvements , and lower inventory reserves , partially offset by the unfavorable impact of the non - renewal of the Global System of Preferences program on import duties and higher inbound freight . Selling , general , and administrative ( " SG & A ” ) expenses increased 50 % to $ 136.7 million , compared to $ 91.0 million in the second quarter of 2020. The 2020 period included the benefit of cost reduction initiatives implemented in response to COVID - 19 . As a percentage of net sales , SG & A expenses increased 140 basis points to 38.2 % from 36.8 % in the prior year period . This increase included 220 basis points increase in non - variable expenses , primarily driven by higher marketing expenses . Variable expense leverage of 80 basis points on higher net sales positively impacted the quarter . Operating income increased 56 % to $ 72.4 million , or 20.2 % of net sales , compared to $ 46.5 million , or 18.8 % of net sales , during the prior year quarter .