Yeti Holdings, the popular maker of coolers and insulated drinkware, reported flat sales in the third quarter. Despite grappling with the fallout from a voluntary recall earlier this year, the company’s direct-to-consumer unit showed strength.
Financial Performance
Yeti Holdings recorded a profit of $42.7 million, or 49 cents a share, for the quarter, which is a decrease compared to $45.5 million, or 52 cents a share, in the same period last year. Adjusted earnings were 60 cents a share, surpassing analysts’ expectations of 55 cents a share.
Sales were reported at $433.6 million, slightly higher than the estimated $427.5 million predicted by analysts.
Direct-to-Consumer Unit Outperforms
Despite an overall decrease in sales, Yeti’s direct-to-consumer sales experienced significant growth, rising by 14% to reach $259.5 million. In contrast, wholesale channel sales declined by 16% to $174.1 million. The company faced challenges in the cooler and equipment category, where sales dropped by 8%. This decline was mainly driven by a recall of certain soft coolers initiated by Yeti earlier this year.
It is evident that Yeti Holdings has managed to maintain steady sales numbers, even amidst a challenging environment. As the company continues to navigate through market dynamics, it will be interesting to observe how its direct-to-consumer strategy further contributes to its growth.
