YETI Holdings, Inc. · NYSE:YETI
YETI — Q3 2024 Earnings Presentation
32 slides from YETI's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Highlights
Third Quarter 2024 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: Recent Highlights
STRATEGIC PRIORITIES: RECENT HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Attended over 100 events across the globe, reaching legacy as well as communities like Skate, Surf and Culinary Expanded our custom drinkware offering to 11 of the largest college football programs in the US, most recently Louisiana
Slide 4: Q3 2024 Results at a Glance
Q3 2024 RESULTS AT A GLANCE ADJUSTED Q3 2024 Q3 2024 ADJUSTED NET SALES1 FINANCIAL METRICS1 $478M Net Sales +10% Net Sales Growth Coolers & +12% +9% Equipment Coolers & Equipment Drinkware 40% $478M Drinkware 58% +14% +8% DTC Wholesale Other2 2% $79M Operating Income 16.6% Operating Margin 1. Based
Slide 5: Brand & Product
ina | g PRODUCT 5 BUILT FOR THE WILD,
Slide 6: Growing Diverse, Global YETI Communities
GROWING DIVERSE, GLOBAL YETI COMMUNITIES 2006 Community Reach FISHING HUNTING 2024 Community Reach FISH HUNT BBQ CULINARY BEVERAGE SKATE SURF/PADDLE SKI/SNOW CLIMB/ALPINE RODEO RANCH EQUESTRIAN WELLNESS GOLF SPORTS Relevance Through Breadth & Depth 15 Communities 197 Ambassadors 6
Slide 7: Extensive Media Reach
EXTENSIVE MEDIA REACH LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 5.4M 5.4M 5.0M 2.1M 1.3M 1.3M 1.2M 1.1M BEST COOLERS FOR BEST TRAVEL COFFEE BEST CAMPSITE COFFEE SUMMER PARTIES, MUG/TUMBLER – 643K MAKER – Rambler French Press CAMPING, TAILGATING Rambler 20oz Tumbler 629K
Slide 8: Media Highlights
MEDIA HIGHLIGHT CountryLiving jul GOOD W I Gi E D) 65 Best ome Men Ba : AMERICA louTDOoRs = | The Best Coolers He'll Actually Use in 2024 em AWARDS ye Strategist <= si i sr The 7 Very Best y) French Presses noord ~ é INSIDEHOOK -_— 7 Products of the Week: Yeti Shot Glasses, . 1 ae } land: yman Rimow
Slide 9: Coolers & Equipment Evolution
COOLERS & EQUIPMENT EVOLUTION 2017 2018 2019 2020 2021 2022 20231 20242 Hard Coolers YETI XV Tundra Haul® Silo® YETI V Series ® Roadie® 24 Tundra® 50 Roadie® 48 Roadie® 60 Roadie® 32 Roadie® 15 Soft Coolers Hopper Flip® 8 & Flip® 18 Daytrip® Hopper® Daytrip® Hopper® Hopper® Hopper® Hopper® Hopper Ba
Slide 10: Drinkware Evolution
DRINKWARE EVOLUTION 2017 2018 2019 2020 2021 2022 2023 20241 4 Oz. / 6 Oz. / 8 Oz. Stackable Cups and Mugs 16 Oz. / 20 Oz. / 30 Oz. Colored 10 Oz. 26 Oz. 26 Oz. Travel 25 Oz. / 35 Oz. Stackable Drinkware Tumbler Stackable Straw Cup Mugs Straw Mugs 34 Oz. / 64 Oz. Yonder Bottles 18 Oz. / 26 Oz. Frenc
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 no single account exceeding 10% of total gross sales1 • International reach into Canada, Australia, Ne
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 • Significant opportunity to grow our dealer base in new markets such as Europe ELEVATED MERCHANDISING
Slide 15: DTC Channel
DTC CHANNEL YETI ECOMMERCE RETAIL GLOBAL SITES: US 23 Stores Canada Australia New Zealand EU France Germany Ireland Italy Netherlands UK 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 2019 Entry 2017 Entry 2019 Websites: UK, EU 2019 Website: YETI.CA 2021 Websites: DE, FR, IT, IE, NL • Building localized lead
Slide 17: Global Supply Chain
GLOBAL SUPPLY CHAIN GLOBAL INFRASTRUCTURE • Partnerships with leading third-party manufacturing and logistics partners • Commenced production at second drinkware facility outside of China; on track with diversification strategy • Ongoing supplier focus on optimizing quality, delivery and best cost •
Slide 18: Financials
FINANCIALS pz 19 BUILT £CR THEWAD, |
Slide 19: Adjusted Q3 2024 Results
ADJUSTED Q3 2024 RESULTS1 ADJUSTED NET SALES $478 $434 Q3 2023 Q3 2024 CATEGORY ADJUSTED NET SALES GROWTH Coolers & Drinkware $275 Equipment $253 $193 $172 Q3 2023 Q3 2024 Q3 2023 Q3 2024 CHANNEL ADJUSTED NET SALES GROWTH $281 Wholesale Direct-to-Consumer $259 $198 $174 Q3 2023 Q3 2024 Q3 2023 Q3 20
Slide 20: Adjusted Q3 2024 Results (Cont'd)
ADJUSTED Q3 2024 RESULTS1 (CONT’D) ADJUSTED GROSS PROFIT ADJUSTED SG&A Adjusted Gross Profit $ / % Margin Adjusted SG&A $ / % Margin $279 / 58.2% $199 / 41.7% $250 / 57.8% $179 / 41.3% Q3 2023 Q3 2024 Q3 2023 Q3 2024 ADJUSTED OPERATING INCOME ADJUSTED EPS Adjusted Operating Income $ / % Margin $79 /
Slide 21: Adjusted Historical Results
ADJUSTED HISTORICAL RESULTS1 ADJUSTED NET SALES ADJUSTED GROSS PROFIT $1,680 Adjusted Gross Profit % Margin $1,634 $1,200 70.0% $1,411 $1,000 $956 $860 65.0% $816 $800 $1,092 $629 60.0% $914 $600 $475 $779 $383 57.6% 57.8% 56.9% 55.0% $400 52.0% 52.7% 50.0% $200 49.2% $0 45.0% 2018 2019 2020 2021 20
Slide 22: Adjusted Historical Results (Cont'd)
ADJUSTED HISTORICAL RESULTS1 (CONT’D) CASH FREE CASH FLOW2 $439 $351 $312 $253 $235 $235 $155 $80 $90 $73 $55 $55 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 CAPITAL EXPENDITURES TOTAL DEBT3 Capital Expenditures % of Adjusted Net Sales $70 10.0% $333 $60 $56 $300 $51 $50 $46 8.0% $40
Slide 23: FY 2024 Outlook
FY 2024 OUTLOOK (as of 11/7/24) Metric Current Outlook Prior Outlook Adjusted Net Sales ~$1.832B $1.815B to $1.848B Up ~9% YoY Up 8% to 10% YoY Adjusted Gross Margin ~58.5% ~58.5% Adjusted Operating Margin ~16.5% ~16.5% Effective Tax Rate ~24.8% ~25.2% Adjusted Income per Diluted Share ~$2.65 $2.61
Slide 24: Appendix
APPENDIX 24 NT FOR THE WILD,
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2018(1) 2019(1)(2) 2020(1) 2021(1) 2022(1) 2023 Net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 $ 1,595.2 $ 1,658.7 Product recalls(3) — — — — 38.4 21.7 Adjusted net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 $ 1,633.6 $ 1,680.4 Gross profit $ 383.1 $ 475.3 $ 628.8 $ 816.1 $ 763
Slide 26: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) 2018(1) 2019(1)(2) 2020(1) 2021(1) 2022(1) 2023 Operating income $ 102.2 $ 89.8 $ 214.2 $ 274.9 $ 126.4 $ 225.5 Non-cash stock-based compensation expense(4)(10) 13.2 52.3 9.0 15.5 17.8 29.8 Long-lived asset impairment(10) 1.2 0.6 1.1 2.5 1.2 2.9 Product recalls(3) —
Slide 27: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) 2018 2019 2020 2021 2022 2023 Net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 $ 1,595.2 $ 1,658.7 Product recalls(3) — — — — 38.4 21.7 Adjusted net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 $ 1,633.6 $ 1,680.4 Net Sales by Geographic Region United States net sales $ 76
Slide 28: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) 2018 2019 2020 2021 2022 2023 Net cash provided by operating activities $ 176.1 $ 86.9 $ 366.4 $ 146.5 $ 100.9 $ 285.9 Less: Purchases of property and equipment (20.9) (32.1) (15.6) (56.1) (45.9) (50.7) Free cash flow $ 155.2 $ 54.8 $ 350.9 $ 90.4 $ 55.0 $ 235.3 Note
Slide 29: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q3 2023 Q3 2024 Net sales $ 433.6 $ 478.4 Product recalls(3) — — Adjusted net sales $ 433.6 $ 478.4 Gross profit $ 251.3 $ 277.7 Transition costs(15) — 0.8 Product recalls(3) (0.8) — Adjusted gross profit $ 250.4 $ 278.5 Adjusted gross margin 57.8 % 58.2 % Selling, g
Slide 30: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q3 2024 Q3 2023 Product Adjusted Product Adjusted Net Sales Recalls(3) Net Sales Net Sales Recalls(3) Net Sales Channel Wholesale $ 197.6 $ — $ 197.6 $ 174.1 $ — $ 174.1 Direct-to-consumer 280.8 — 280.8 259.5 — 259.5 Total $ 478.4 $ — $ 478.4 $ 433.6 $ — $ 433.6 Cate
Slide 31: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q4 2023 Q1 2024 Q2 2024 Q3 2024 LTM Net sales $ 519.8 $ 341.4 $ 463.5 $ 478.4 $ 1,803.1 Product recalls(3) (2.8) — — — (2.8) Adjusted net sales $ 517.0 $ 341.4 $ 463.5 $ 478.4 $ 1,800.3 Net Sales by Channel Wholesale net sales $ 174.9 $ 153.6 $ 213.1 $ 197.6 $ 739.3
Slide 32: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) 1. Beginning with the second quarter of Fiscal 2022, YETI revised its definitions of certain non-GAAP financial measures by excluding Other expense (income) from non-GAAP results. This change was retrospectively applied to all periods presented. 2. Beginning with the