When Yeti Holdings Inc. (NYSE: YETI) released its third-quarter financial results before the markets opened on Thursday, it was the first time that it reported as a public company. The firm said that it had $0.24 in earnings per share (EPS) and $196.1 million in revenue, which compares with consensus estimates of $0.22 in EPS and $195.06 million in revenue.
During the quarter, wholesale channel net sales were roughly flat at $125.0 million compared to the same period last year, with lower Coolers & Equipment net sales offset by an increase in Drinkware net sales.
Coolers & Equipment net sales decreased 16%, to $86.7 million, compared to $102.9 million during the same period last year. Drinkware net sales increased 37%, to $104.0 million, compared to $75.8 million during the same period last year driven by strong growth in both the wholesale and direct-to-consumer (DTC) channels.
Net sales through Yeti’s DTC channel increased 23%, to $71.2 million compared to $58.0 million during the same period last year.
Looking ahead to the fiscal full year, the company expects to see EPS in the range of $0.79 to $0.82 and net sales increasing between 19% and 20%. Consensus estimates call for $0.80 in EPS and $763.93 million in revenue for the year.
Matt Reintjes, president and CEO of Yeti, commented:
We are pleased with our performance in the third quarter which resulted in a significant increase in both gross margin and net income. We continue to support and stoke a passionate customer base, design and develop superior product, and optimally balance our omni-channel distribution. Looking ahead, we remain committed to executing against our growth strategies through expanding our customer base as we drive brand awareness, introducing new and innovative products, accelerating DTC sales and expanding our international presence. YETI is an exceptional brand with enormous opportunity. I want to thank all of our customers and YETI employees whose passion has built YETI into the brand it is today.
Shares of Yeti were last seen down nearly 3% at $18.65 on Thursday, with a consensus analyst price target of $23.10 and a post-IPO range of $14.62 to $21.45.