Shares of Yeti Holdings Inc. (YETI) witnessed a 1.9% increase in premarket trading on Thursday, following the release of the company’s second-quarter financial results. Yeti, known for its high-quality drinkware, coolers, and outdoor products, reported a slight miss on revenue expectations while surpassing profit estimates. As a result, the company has raised its full-year outlook.
Net income for the quarter decreased to $38.1 million, or 44 cents per share, compared to $46.3 million, or 53 cents per share, in the same period last year. However, after adjusting for nonrecurring items, Yeti delivered adjusted earnings per share of 57 cents, exceeding the FactSet consensus of 47 cents.
Although sales experienced a 4.2% decline to $402.6 million, falling short of the FactSet consensus of $411.5 million, it’s important to note that a recall reserve adjustment negatively impacted sales by $24.5 million. In March, Yeti announced voluntary recalls for certain Hopper coolers and SideKick Dry gear cases. Despite this setback, drinkware sales saw an increase of 8% to $233.4 million, while coolers and equipment sales declined by 19% to $156.6 million.
Revised Full-Year Outlook
Yeti remains optimistic about its future prospects. The company has raised its guidance ranges for adjusted earnings per share in 2023, now projecting a range of $2.23 to $2.32, compared to the previous range of $2.12 to $2.23.
Over the past three months up until Wednesday, Yeti’s stock has experienced a decline of 8.2%. In contrast, during the same period, the S&P 500 index has gained 8.0%.
As Yeti Holdings Inc. navigates through the challenges posed by recalls and market fluctuations, the company continues to deliver innovative and high-quality products to its loyal customer base.