Page 1

YETI Reports Third Quarter 2021 Results 11/11/2021 Net Sales Increased 23 % EPS Increased to $ 0.60 from $ 0.58 Adjusted EPS Increased to $ 0.64 from $ 0.61 Raises 2021 Outlook AUSTIN , Texas -- ( BUSINESS WIRE ) -- YETI Holdings , Inc. ( “ YETI " ) ( NYSE : YETI ) today announced its financial results for the third quarter ended October 2 , 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 , " YETI's third quarter results continue to reflect robust demand for our brand . We delivered net sales growth of 23 % on top of an exceptional 29 % growth in the prior year's period , powered by our innovative product portfolio with balanced performance across our channels and categories . Profitability remained strong amidst accelerating and wide - spread inflationary pressures , supporting better - than - expected earnings per share growth for the period . " Mr. Reintjes concluded , " We are focused on building on the strong momentum in our business through the holidays and well into the future . While we are not immune to the confluence of supply chain disruptions and cost pressures that are pervasive in the market , our team's ongoing execution has supported our ability to once again raise both our top and bottom line outlooks for the year . As we continue to move forward in this challenging environment , we remain highly committed to both actions and continued investments that will position YETI for both near- and long - term sustainable growth . " For the Three Months Ended October 2 , 2021 Net sales increased 23 % to $ 362.6 million , compared to $ 294.6 million during the same period last year . • Direct - to - consumer ( " DTC " ) channel net sales increased 31 % to $ 197.1 million , compared to $ 150.4 million in the prior year quarter , driven by strong performance in both Drinkware and Coolers & Equipment . The DTC channel grew to 54 % of net sales , compared to 51 % in the prior year period . • Wholesale channel net sales increased 15 % to $ 165.5 million , compared to $ 144.2 million in the same period last year , driven by both Drinkware and Coolers & Equipment . • Drinkware net sales increased 24 % to $ 205.0 million , compared to $ 165.9 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 20 % to $ 149.0 million , compared to $ 124.2 million in the same period last year , strong performance in bags , outdoor living products , soft coolers , and hard coolers . driven by Gross profit increased 19 % to $ 207.0 million , or 57.1 % of net sales , compared to $ 174.0 million , or 59.1 % of net sales , in the third quarter of 2020. The 200 basis point decrease in gross margin was primarily driven by higher inbound freight rates and the unfavorable impact of the non - renewal of the Global System of Preferences ( " GSP " ) program on import duties , partially offset by product cost improvements and all other impacts . Selling , general , and administrative ( " SG & A ” ) expenses increased 33 % to $ 138.3 million , compared to $ 103.9 million in the third quarter of 2020. The 2020 period included the benefit of cost reduction initiatives implemented in response to the uncertainties of COVID - 19 . As a percentage of net sales , SG & A expenses increased 280 basis points to 38.1 % from 35.3 % in the prior year period , primarily driven by higher marketing expenses . Operating income decreased 2 % to $ 68.7 million , or 19.0 % of net sales , compared to $ 70.1 million , or 23.8 % of net sales , during the prior year quarter due to the aforementioned lower spending levels in 2020 . Adjusted operating income increased 3 % to $ 74.2 million , or 20.5 % of net sales , compared to $ 72.4 million , or 24.6 % of net sales , during the same period last year due to the aforementioned lower spending levels in 2020 .