Published on 11 May 2022 on Market Watch

YETI stock gains after profit beat and raised outlook, amid Drinkware strength

Share of YETI Holdings Inc. gained 0.1% in premarket trading Wednesday, after the outdoor products company reported first-quarter profit and sales that beat expectations, as strength in drinkware sales offset a miss in cooler and equipment sales. Net income fell to $25.7 million, or 29 cents a share, from $30.5 million, or 35 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 33 cents topped the FactSet consensus of 32 cents. Sales grew 18.6% to $293.6 million, above the FactSet consensus of $290.5 million. Drinkware sales rose 23.6% to $184.0 million, above the FactSet consensus of $175.8 million, and Cooler and Equipment sales increased 10.2% to $103.0 million but was below expectations of $110.0 million. Meanwhile, cost of sales jumped 35.6% to $138.8 million, as gross margin contracted to 52.7% from 58.6%. " We are very encouraged with this performance when measured against the backdrop of ongoing and emerging challenges that continue to pressure consumer spending and sentiment," said Chief Executive Matt Reintjes. For 2022, the company raised its adjusted EPS guidance range to $2.86 to $2.91 from $2.82 to $2.86, and expects sales to be up 18% to 20%, while the FactSet consensus of $1.68 billion implies 19.3% growth. The stock has plunged 46.9% year to date through Tuesday, while the S&P 500 has dropped 16.1%.