YETI Holdings, Inc. · NYSE:YETI
YETI — Q2 2022 Earnings Presentation
28 slides from YETI's earnings presentation, Aug 4, 2022
Slide 1: Second Quarter 2022 Highlights
Second 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: Q2 2022 Highlights
STRATEGIC PRIORITIES: Q2 2022 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Completed highly-successful, 13-stop YETI Presents Film Tour Debuted collection of customer experiences via user-generated content across social channels Gained momentum on TikTok through both YETI- and user-generated content 2 INTR
Slide 4: Q2 2022 Results at a Glance
Q2 2022 RESULTS AT A GLANCE KEY Q2 2022 Q2 2022 Net Sales FINANCIAL METRICS $420MNet Sales +17% Net Sales Coolers & +23% +12% Equipment Coolers & Equipment Drinkware 46% $420M Drinkware 51% +14% +21%Wholesale DTC Other1 3% $74M Adjusted Operating Income2 17.6% 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 151 Ambassadors 6
Slide 7: Strong, Diverse Media Reach
STRONG, DIVERSE MEDIA REACH LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 5.2M 4.9M 4.2M 1.7M 1.0M 1.0M 770K 611K ROADIE® 24 CAMINO® 35 CARRYALL TUNDRA 45 543K TUNDRA HAUL BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of July 30, 2022. 7
Slide 8: Media Highlights
MEDIA HIGHLIGHTS and Shoulders From Lugging Around Drinks and The § . WELL+GOOD TRAVEL+ Ehe New ork Eimes CIN This Spacious Cooler Backpack Will Save Your Back LEISURE bes ei ea hi pull Snacks All Summer Long Thiss ping ear: Towels, Totes, Coolers, andMore " ’ The best products we’ve tested in April
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 Roadie® Roadie® Haul™ Silo® V Series™ 24 Tundra 50 48 60 Soft Coolers Daytrip® Daytrip® Hopper Flip® 8 Hopper® Hopper® Hopper® Coolers & Equipment Hopper® Two Hopper BackFlip™ Lunch Bag M30 Lu
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 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 13 BUILT FOR THE WILD,
Slide 19: Q2 2022 Results
Q2 2022 RESULTS NET SALES $420 $358 Q2 2021 Q2 2022 CATEGORY NET SALES GROWTH Coolers & Equipment Drinkware $193 $216 $193 $158 Q2 2021 Q2 2022 Q2 2021 Q2 2022 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $195 $225 $197 $161 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Note: $ in millions. 19
Slide 20: Q2 2022 Results (Cont'd)
Q2 2022 RESULTS (CONT’D) GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $219 / 52.2% $145 / 34.6% $209 / 58.5% $132 / 36.8% Q2 2021 Q2 2022 Q2 2021 Q2 2022 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $0.68 $77 / 21.6% $74 / 17.6
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 8/4/22)
FY 2022 OUTLOOK (as of 8/4/22) Metric Current Outlook Prior Outlook Net Sales $1.623B to $1.651B $1.665B to $1.693B Up 15% to 17% YoY Up 18% to 20% YoY Gross Margin 52.0% to 53.0% ~55.0% Adjusted Operating Margin 1 17.0% to 17.5% ~20.0% Effective Tax Rate ~24.6% ~24.0% Adjusted Income per Diluted Sh
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) Q2 2021 Q2 2022 Net sales $ 357.7 $ 420.0 Selling, general, and administrative $ 136.7 $ 150.8 Non-cash stock-based compensation expense(1) (4.1) (5.5) Long-lived asset impairment(1) (0.9) — Adjusted selling, general, and administrative $ 131.7 $ 145.3 % 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 $ 1,622.6 $ 1,650.9 $ 1,665.0 $ 1,693.2 Operating income $ 255.0 $ 268.0 $ 310.0 $ 315.7 Non-cash stock-based compensation expense(1) 20.9 20.9 23.0 23.0 Adjusted operating income $ 275.8 $ 288.9
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