AUSTIN, Texas–(BUSINESS WIRE)– YETI Holdings, Inc. (“YETI”) (NYSE: YETI) announced its financial results for the third quarter ended September 26, 2020.
Matt Reintjes, President and Chief Executive Officer, commented, “YETI continued to successfully harness both the momentum we experienced pre-pandemic and the accelerating interest in active, outdoor activities during the pandemic. During this dynamic period, we generated very strong third quarter revenue growth of +29% and expanded operating margin by 900 basis points. In addition, we continued to strengthen our balance sheet by amassing $235 million of cash and voluntarily paid down $50 million of debt in the process. We are now focused on continuing the momentum through the 2020 holidays and into 2021 as we build supply to meet demand across our omni-channel and invest in the long-term, sustainable growth of the brand.”
Mr. Reintjes concluded, “YETI’s performance in the quarter and throughout 2020 is a result of the incredible efforts of our global employees who have not only adapted but thrived in this extraordinary environment, and our customers and partners who have continued to show their support and confidence in our innovation and our brand.”
For the Three Months Ended September 26, 2020
Net sales increased 29% to $294.6 million, compared to $229.1 million during the same period last year.
- Direct-to-consumer (“DTC”) channel net sales increased 62% to $150.4 million, compared to $92.9 million in the prior year quarter, driven by strong performance in both Coolers & Equipment and Drinkware. The increase was primarily due to the continued strong demand for outdoor recreation and leisure lifestyle products and an increasing shift to online shopping as a result of the ongoing COVID-19 pandemic.
- Wholesale channel net sales increased 6% to $144.2 million, compared to $136.2 million in the same period last year, primarily driven by Drinkware.
- Drinkware net sales increased 31% to $165.9 million, compared to $126.4 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 27% to $124.2 million, compared to $97.8 million in the same period last year, driven by strong performance in hard coolers, soft coolers, outdoor living products, cargo, and bags.
Gross profit increased 45% to $174.0 million, or 59.1% of net sales, compared to $120.1 million, or 52.4% of net sales, in the third quarter of Fiscal 2019. The 670 basis point increase in gross margin was primarily driven by a favorable shift in our channel mix led by an increase in DTC channel net sales, product cost improvements, decreased tariffs, and lower inbound freight.