Yeti Continues to Outperform with Widespread Growth Across Categories and Channels
Yeti to launch food storage containers, cookware, and integrate Mystery Ranch designs in the back half of 2024 and early 2025.
By Kate Robertson
Yeti will launch food storage containers and organizers this year that are compatible with the brand's coolers. Photo by K.A for stock.adobe.com
International expansion and sales of coolers and equipment drove Yeti’s net sales increase in the second quarter of 2024.
The Austin, Texas-based company reported net sales of $463.5 million in the quarter ending June 29. That’s an adjusted 9% increase, which excludes the $24.5 million sales decrease from last year’s cooler recall reserve adjustment, or an unadjusted 15% increase compared to the same quarter the previous year.
“Our innovation across our portfolio, in particular coolers, proved to be impactful, creating what we believe will be momentum going into the second half of the year and beyond,” said Yeti CEO Matthew Reintjes on the company’s Aug. 8 earnings call. “Complementing our focus on coolers, we continue to drive expansion in our drinkware portfolio.”
Adjusted net sales of coolers and equipment grew by 14% to $205.9 million compared to the same quarter last year, or an increase of 31%. Drinkware net sales, both adjusted and not, grew by 6% to $246.5 million.
International adjusted net sales increased by 34% and U.S. adjusted net sales increased by 5% in the quarter compared to last year.
Yeti’s net income increased by 32% to $50.4 million, or 10.9% of sales, compared to $38.1 million, or 9.5% of sales in the same quarter last year. Net income per diluted share was $0.59, compared to $0.44 in the prior-year quarter.
Building on Cooler and Kitchenware Success
Soft coolers and bags sales have been particularly strong at Yeti, which reported an adjusted sales increase of 14% in coolers and equipment for the first half of the year.
Marketing campaigns of hard coolers such as the wheeled Roadie 32 and the Roadie 15 have been successful, Reintjes said.
“We are particularly excited with the most recent launch of the Roadie 15, our smallest hard cooler in the lineup, featuring an attractive $200 opening price point,” he said.
Later this year, Yeti will launch cooler-compatible food organization and storage containers. It’s also working on integrating designs by Mystery Ranch, which Yeti acquired in January 2024.
“We’ve established a robust long-term road map for the category and are on track to launch a range of new products starting in the first quarter of 2025, roughly one year post-acquisition,” Reintjes said.
In drinkware, Yeti’s French Press received industry accolades and strong consumer demand. Later this year, the company will launch its first line of cookware products, including three cast iron skillets ranging from $150 to $250.
“We believe this will be the best cast iron in the world, opening the door for broader opportunities in the cookware and culinary space going forward,” Reintjes said.
Tapping New Markets, Including the NFL
Yeti’s sales increases were also attributed to broadening the types of communities the brand engages with, most recently golf, equestrian, an NHL Stanley Cup campaign, and a new licensing agreement with the NFL.
“Under this agreement, fans will soon be able to purchase officially licensed Yeti drinkware and coolers for all 32 NFL teams,” Reintjes said. “The NFL license has also been key to us establishing our first NFL team partnership with the Dallas Cowboys as the official cooler and drinkware of the team.”
Yeti grew sales in Europe, Canada, and Australia through the quarter, with international sales up by 34% year-over-year. The company added nine new European brand ambassadors to its roster this year, and it is increasing its product customization options in Australia and Canada.
“While the wholesale environment in Canada remains challenging, we were encouraged by the sell-through performance at our largest account,” Reintjes said. “Similar to Australia, we are also making progress scaling our customization business, including our e-commerce capabilities and the growing traction of our corporate sales.”
Wholesale and DTC Growth
Direct-to-consumer (DTC) sales increased 11% to $250.4 million, compared to $226.4 million in the same quarter a year ago, which Yeti attributed to growth in both the coolers and equipment category as well as in the drinkware category.
Wholesale channel sales increased by 21% to $213.1 million, compared to $176.2 million in the same period last year.
Yeti opened stores outside of Kansas City and in Calgary – its first Canadian store – in the quarter. It aims to open another three stores through the rest of the year, bringing its store total to 24.
Based on the first six months of 2024, Yeti raised its outlook for the year, projecting adjusted sales to increase between 8% and 10% compared to the previous outlook of a 7% to 9% increase.
“This reflects our strong second quarter results and continued confidence in our ability to deliver (in) the second half of the year despite an uncertain macro environment,” Reintjes said.
Original story published by The Daily Outdoor Retailer.