YETI Holdings, Inc. · NYSE:YETI
YETI — Q3 2022 Earnings Presentation
28 slides from YETI's earnings presentation, Nov 10, 2022
Slide 1: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this
Slide 3: Strategic Priorities: Q3 2022 Highlights
STRATEGIC PRIORITIES: Q3 2022 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Expanded popular “how-to” PACKED video series on social to demonstrate functionality and versatility Amplified brand exposure with Austin FC partnership in their run to the MLS Western Conference Finals Female ambassadors capture “F
Slide 4: Q3 2022 Results at a Glance
Q3 2022 RESULTS AT A GLANCE KEY Q3 2022 Q3 2022 Net Sales FINANCIAL METRICS $434MNet Sales +20% Net Sales Coolers & +25% +17% Equipment Coolers & Equipment Drinkware 43% $434M Drinkware 55% +15% +25%Wholesale DTC Other1 2% $73M Adjusted Operating Income2 16.9% Adjusted Operating Margin 1 Other inclu
Slide 5: Brand & Product
BRAND & PRODUCT 5
Slide 6: Building Diverse YETI Communities
BUILDING DIVERSE YETI COMMUNITIES 2006 Community Reach FISHING HUNTING 2022 Community Reach FISHING HUNTING BEER & BBQ CULINARY SKI/SNOWBOARD SKATEBOARD SURF/PADDLE CLIMB/ALPINE RODEO RANCH WELLNESS MUSIC SPORTS Relevance Through Breadth & Depth 13 Communities 158 Ambassadors 6
Slide 7: Strong, Diverse Media Reach
STRONG, DIVERSE MEDIA REACH LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 5.2M 5.1M 4.3M 1.8M 1.0M 1.0M 819K 617K ROADIE® 24 CAMINO® 35 CARRYALL TUNDRA 45 549K TUNDRA HAUL BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of October 31, 2022. 7
Slide 8: Media Highlights
MEDIA HIGHLIGHTS Lifelong Crimson Tide fan and Texas-based pitmaster Matt Pittman is teaming up with YETI for a "Battle of the BBQ" in Austin Saturday. Yeti now sells a wheeled version of its Roadie, and it's easily the best cooler in the brand's entire lineup Everything You Need for the Perfect Tai
Slide 9: Broadening Awareness
BROADENING AWARENESS DOMESTIC UNAIDED BRAND AWARENESS BY REGION1 2016 2018 2020 2022 20% 19%19% 18% 17% 17% 16% 16% 15% 15%15% 15% 14% 14% 14% 14% 14%14% 13% 13% 13% 13% 13% 11% 10% 10% 10% 9% 8% 8% 7% 6% 5% 5% 4% 3% 2% 2% 1% 1% East South West South New England West North East North South Atlantic
Slide 10: Product & Category Evolution Since 2017
PRODUCT & CATEGORY EVOLUTION SINCE 2017 2017 2018 2019 2020 2021 2022 YTD Hard Coolers YETI Roadie® YETI XV Roadie® Roadie® Haul™ Silo® V Series™ 24 Tundra 50 48 60 Soft Coolers Hopper Flip® 8 Daytrip® Hopper® Daytrip® Hopper® Hopper® Coolers & Equipment Hopper® Two Hopper BackFlip™ Lunch Bag Lunch
Slide 11: Extending Product Reach
EXTENDING PRODUCT REACH Customization Color Limited Edition CUSTOMIZATION, COLOR, AND LIMITED EDITION OFFERINGS ENCOURAGE NEW AND REPEAT PURCHASES 11
Slide 12: Channels & Supply Chain
CHANNELS & SUPPLY CHAIN 12
Slide 13: Omni-Channel Strategy
OMNI-CHANNEL STRATEGY OVERVIEW • Balanced omni-channel strategy across DTC and wholesale channels • DTC business supports higher gross margin profile • Diverse group of U.S. wholesale partners with only one account exceeding 10% of total gross sales1 • International reach into Canada, Australia, New
Slide 14: Wholesale
WHOLESALE NATIONAL & REGIONAL ACCOUNTS INDEPENDENT DEALERS • Diverse dealers across BBQ, boating, building supply, camping, farming, fishing, hardware, hunting & shooting, and outdoor destinations • ~60% dealer reduction from FY15 to FY21 to strengthen our brand, drive merchandising consistency, and
Slide 15: DTC Channel
DTC CHANNEL YETI ECOMMERCE RETAIL AUSTIN South Congress AUSTIN Domain CARLSBAD CHARLESTON CHICAGO DALLAS DENVER LAS OLAS HOUSTON SAN ANTONIO SCOTTSDALE SOUTHLAKE CORPORATE SALES YETI AUTHORIZED 15
Slide 16: Expand Internationally
EXPAND INTERNATIONALLY EXPANSION STRATEGY INTERNATIONAL FOOTPRINT • Focused on existing markets to drive deep consumer relevance and develop optimal omni-channel distribution • Building localized leadership and talent, processes, and 2019 Entry brand elements to scale opportunities 2017 Entry 2019 W
Slide 17: Global Supply Chain
GLOBAL SUPPLY CHAIN GLOBAL INFRASTRUCTURE • Partnerships with leading third-party manufacturing and logistics partners • Ongoing supplier focus on optimizing quality, delivery and best cost • Future capacity framework informed by diversification and redundancy • 3PL facilities in Memphis, Salt Lake
Slide 18: Financials
FINANCIALS 18
Slide 19: Q3 2022 Results
Q3 2022 RESULTS NET SALES $434 $363 Q3 2021 Q3 2022 CATEGORY NET SALES GROWTH Coolers & Equipment Drinkware $186 $239 $149 $205 Q3 2021 Q3 2022 Q3 2021 Q3 2022 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $206 $227 $166 $197 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Note: $ in millions. 19
Slide 20: Q3 2022 Results (Cont'd)
Q3 2022 RESULTS (CONT’D) GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $222 / 51.3% $149 / 34.4% $207 / 57.1% $133 / 36.6% Q3 2021 Q3 2022 Q3 2021 Q3 2022 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $0.65 $0.63 $74 / 20.5% $73
Slide 21: Historical Results
HISTORICAL RESULTS NET SALES GROSS PROFIT Gross Profit % Margin $1,411 $900 70.0% $816 $800 $700 65.0% $1,092 $629 $600 $914 $500 $475 60.0% $383 $779 $400 57.6% 57.8% 55.0% $300 $200 52.0% 50.0% $100 49.2% $0 45.0% 2018 2019 2020 2021 2018 2019 2020 2021 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adj
Slide 22: Historical Results (Cont'd)
HISTORICAL RESULTS (CONT’D) CASH FREE CASH FLOW1 $312 $351 $253 $155 $80 $73 $90 $55 2018 2019 2020 2021 2018 2019 2020 2021 CAPITAL EXPENDITUTRES TOTAL DEBT2 Capital Expenditures % of Net Sales $70 10.0% $333 $60 $56 $300 $50 8.0% $40 6.0% $32 $30 $135 $21 4.0% $113 $20 $16 4.0% 3.5% 2.0% $10 2.7%
Slide 23: FY 2022 Outlook (as of 11/10/22)
FY 2022 OUTLOOK (as of 11/10/22) Metric Current Outlook Prior Outlook Net Sales ~$1.637B $1.623B to $1.651B Up 16% YoY Up 15% to 17% YoY Gross Margin ~52.5% 52.0% to 53.0% Adjusted Operating Margin 1 ~17.0% 17.0% to 17.5% Effective Tax Rate ~24.6% ~24.6% Adjusted Income per Diluted Share 1 ~$2.36 $2
Slide 24: Appendix
APPENDIX 24
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2018(1) 2019(1)(2) 2020(1) 2021(1) Net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 Operating income $ 102.2 $ 89.8 $ 214.2 $ 274.9 Non-cash stock-based compensation expense(2)(3) 13.2 52.3 9.0 15.5 Long-lived asset impairment(2) 1.2 0.6 1.1 2.5 Investments in new retail locatio
Slide 26: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q3 2021 Q3 2022 Net sales $ 362.6 $ 433.6 Selling, general, and administrative $ 138.3 $ 153.9 Non-cash stock-based compensation expense(1) (3.8) (4.7) Long-lived asset impairment(1) (1.2) (0.2) Business optimization expense(1)(2) (0.5) — Adjusted selling, general, a
Slide 27: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Previous FY22 Outlook Updated FY22 Outlook Low High Net sales $ 1,636.7 $ 1,665.0 $ 1,693.2 Operating income $ 259.0 $ 310.0 $ 315.7 Non-cash stock-based compensation expense(1) 19.2 23.0 23.0 Long-lived asset impairment(1) 0.2 — — Adjusted operating income $ 278.4 $
Slide 28: Historical Adjusted Net Income Recast
HISTORICAL ADJUSTED NET INCOME RECAST As Recast(1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Net income $ 30.5 $ 56.2 $ 53.0 $ 72.9 $ 212.6 $ 25.7 Adjustments: Non-cash stock-based compensation expense(2) 3.4 4.1 3.8 4.1 15.5 4.8 Long-lived asset impairment(2) 0.3 0.9 1.2 0.1 2.5 — Other expen