YETI Holdings, Inc. · NYSE:YETI
YETI — Q1 2022 Earnings Presentation
28 slides from YETI's earnings presentation, May 11, 2022
Slide 1: First Quarter 2022 Highlights
First 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: Q1 2022 Highlights
STRATEGIC PRIORITIES: Q1 2022 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Activated the brand in key Q1 global events in the worlds of surfing and snow sports Expanded the reach of our international ambassador roster in France, Australia, and the U.K. Announced the return of the YETI Film Tour with a 12-s
Slide 4: Q1 2022 Results at a Glance
Q1 2022 RESULTS AT A GLANCE KEY Q1 2022 Q1 2022 Net Sales FINANCIAL METRICS $294MNet Sales +19% Net Sales Coolers & +10% +24% Equipment Coolers & Equipment Drinkware 35% $294M Drinkware 63% +23% +14%Wholesale DTC Other1 2% $38M Adjusted Operating Income2 13.0% Adjusted Operating Margin 1 Other inclu
Slide 5: Brand & Product
BRA BRAND & PRODUC
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 150 Ambassadors 6
Slide 7: Strong, Diverse Media Reach
STRONG, DIVERSE MEDIA REACH LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 5.1M 4.8M 4.0M 1.7M 1.0M 1.0M 717K 612K HOPPER M30 2.0 CROSSROADS CROSSROADS DUFFEL BACKPACK 539K BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of May 3, 2022. 7
Slide 8: Media Highlights
MEDIA HIGHLIGHTS Pandering Nien Al Forbes s&NBC NEWS YETI just launched new seasonal colors vee . New & Notable from Yeti and Rifle Paper Co. and gear perfect for spring Ahead Of Beijing Olympics, z ‘Also: New Apple product avalable now, Uber Easbillpiting and new Peloton pricing. Natural Selection
Slide 9: Broadening Awareness
BROADENING AWARENESS DOMESTIC UNAIDED BRAND AWARENESS BY REGION1 2018 2019 2020 2021 26% 24% 22% 20% 20% 19% 18% 19% 18% 18% 17% 17% 16% 16% 16% 15% 15% 14% 14% 14% 13% 13% 13% 13% 12% 11% 11% 11% 11% 10% 10% 10% 9% 9% 8% 8% 8% 7% 5% 4% 2 3 3 3 3 2 3 2 3 East South West North West South South Atlant
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 Haul™ Silo® V Series™ 24 Tundra 50 Soft Coolers Daytrip® Daytrip® Hopper Flip® 8 Hopper® Hopper® Hopper® Coolers & Equipment Hopper® Two Hopper BackFlip™ Lunch Bag M30 Lunch Box & Flip® 18 M20
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 • Faster growing 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,
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 AUSTIN Domain CHARLESTON CHICAGO DALLAS DENVER LAS OLAS HOUSTON SAN ANTONIO SCOTTSDALE 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
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Slide 19: Q1 2022 Results
Q1 2022 RESULTS NET SALES $294 $248 Q1 2021 Q1 2022 CATEGORY NET SALES GROWTH Coolers & Equipment Drinkware $103 $184 $93 $149 Q1 2021 Q1 2022 Q1 2021 Q1 2022 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $138 $156 $121 $127 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Note: $ in millions. 19
Slide 20: Q1 2022 Results (Cont'd)
Q1 2022 RESULTS (CONT’D) GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $155 / 52.7% $117 / 39.8% $145 / 58.6% $101 / 41.0% Q1 2021 Q1 2022 Q1 2021 Q1 2022 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $44 / 17.7% $0.38 $38 / 13.0
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 5/11/22)
FY 2022 OUTLOOK (as of 5/11/22) Metric Current Outlook Prior Outlook Net Sales $1.665B to $1.693B $1.665B to $1.693B Up 18% to 20% YoY Up 18% to 20% YoY Gross Margin ~55.0% ~55.0% Adjusted Operating Margin 1 ~20.0% ~20.0% Effective Tax Rate ~24.0% ~24.0% Adjusted Income per Diluted Share 1 $2.86 to
Slide 24: Appendix
APPENDIX 24
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2018 2019(1) 2020 2021 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 locations and inter
Slide 26: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q1 2021 Q1 2022 Net sales $ 247.6 $ 293.6 Selling, general, and administrative $ 105.1 $ 121.6 Non-cash stock-based compensation expense(1) (3.4) (4.8) Long-lived asset impairment(1) (0.3) — Adjusted selling, general, and administrative $ 101.4 $ 116.8 % of Net sales
Slide 27: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Updated FY22 Outlook Previous FY22 Outlook Low High Low High Net sales $ 1,665.0 $ 1,693.2 $ 1,665.0 $ 1,693.2 Operating income $ 310.0 $ 315.7 $ 310.0 $ 315.7 Non-cash stock-based compensation expense(1) 23.0 23.0 23.0 23.0 Adjusted operating income $ 333.0 $ 338.6
Slide 28: Net Sales by Geographic Region
NET SALES BY GEOGRAPHIC REGION Beginning in 2022, YETI will report net sales by geographic region based on end-consumer location. Sales by Amazon Canada and to international customers where YETI does not have a physical presence were previously reported as United States net sales and will now be rep