Yeti | 10-Q: FY2025 Q1 Revenue Beats Estimate at USD 351.13 M

Revenue: As of FY2025 Q1, the actual value is USD 351.13 M, beating the estimate of USD 347.52 M.

EPS: As of FY2025 Q1, the actual value is USD 0.2, beating the estimate of USD 0.1913.

EBIT: As of FY2025 Q1, the actual value is USD 23.36 M.

Segment Revenue

• Net Sales: Total net sales for the three months ended March 29, 2025, were $351.1 million, a 3% increase from $341.4 million for the same period in 2024.
  • Direct-to-Consumer (DTC) Channel: Net sales increased by 4% to $196.2 million, primarily due to growth in Coolers & Equipment.
  • Wholesale Channel: Net sales increased by 1% to $154.9 million, driven by growth in Coolers & Equipment.
  • Coolers & Equipment: Net sales increased by 17% to $140.2 million, driven by strong performance in bags and hard coolers.
  • Drinkware: Net sales decreased by 4% to $205.6 million, impacted by a decline in the U.S. region and a strategic shift in supply chain priorities.

Operational Metrics

• Gross Profit: Increased by 4% to $201.7 million, with a gross margin of 57.4%, up 30 basis points from the prior year.
• Selling, General, and Administrative Expenses (SG&A): Increased by 7% to $180.1 million, representing 51.3% of net sales, up from 49.5% in the prior year.
• Operating Income: Decreased to $21.7 million from $25.8 million in the prior year, with an operating margin of 6%.
• Net Income: Increased to $16.6 million from $15.9 million in the prior year.

Cash Flow

• Net Cash Used in Operating Activities: - $80.3 million, compared to - $103.7 million in the prior year, primarily due to changes in working capital.
• Net Cash Used in Investing Activities: - $15.5 million, primarily due to prior year acquisitions.
• Net Cash Used in Financing Activities: - $6.5 million, compared to - $102.8 million in the prior year, primarily due to prior year stock repurchases.

Future Outlook and Strategy

• Core Business Focus: YETI plans to mitigate the impact of tariffs by diversifying Drinkware manufacturing outside of China by the end of 2025 and managing operating expenses, working capital, and cash.
• Non-Core Business: The company is pursuing strategic options to further mitigate tariff impacts, including negotiations with suppliers and supply chain optimization activities.
• Priority: YETI is focused on maintaining a strong cash position and leveraging its Revolving Credit Facility to ensure liquidity for future operations.