YETI Holdings, Inc. · NYSE:YETI
YETI — Q1 2023 Earnings Presentation
30 slides from YETI's earnings presentation, May 11, 2023
Slide 1: First Quarter 2023 Highlights
First Quarter 2023 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 2023 Highlights
STRATEGIC PRIORITIES: Q1 2023 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Launched global partnership with the World Surf League (WSL) Headlines two international snowboarding events: YETI Natural Selection Revelstoke and YETI Xtreme Verbier Announced as official Cooler and Drinkware for Formula One racin
Slide 4: Q1 2023 Results at a Glance
Q1 2023 RESULTS AT A GLANCE ADJUSTED Q1 2023 Q1 2023 ADJUSTED NET SALES1 FINANCIAL METRICS1 $303M Net Sales +3% Net Sales Growth Coolers & +1% +3% Equipment Coolers & Equipment Drinkware 34% $303M Drinkware 63% +7% -1% Wholesale DTC Other2 3% $22M Operating Income 7.2% Operating Margin 1. Based on n
Slide 5: Brand & Product
BRAND & PRODUCT, 5 BUILT €OR THE WILD,
Slide 6: Growing Diverse, Global YETI Communities
GROWING DIVERSE, GLOBAL YETI COMMUNITIES 2006 Community Reach FISHING HUNTING 2023 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 169 Ambassadors 6
Slide 7: Extensive Media Reach
EXTENSIVE MEDIA REACH LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 5.4M 5.1M 4.5M 1.8M 1.1M 1.0M 925K 618K TUNDRA® 65 HARD ROADIE® 48 WHEELED WEBBY AWARD WINNER COOLER COOLER “YEAR IN PREVIEW” 567K BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of May 1, 2023. 7
Slide 8: Media Highlights
MEDIA HIGHLIGHTS YETI's New Spring Colors Take a Cue Straight From Nature 8
Slide 9: Coolers & Equipment Evolution
COOLERS & EQUIPMENT EVOLUTION 2017 2018 2019 2020 2021 2022 2023* Hard Coolers YETI XV Tundra Haul® Silo® YETI V Series ® Roadie® 24 Tundra® 50 Roadie® 48 Roadie® 60 Soft Coolers Hopper Flip® 8 & Flip® 18 Daytrip® Hopper® Daytrip® Hopper® Hopper® Hopper BackFlip™ Lunch Bag M30 Lunch Box M20 Backpack
Slide 10: Drinkware Evolution
DRINKWARE EVOLUTION 2017 2018 2019 2020 2021 2022 2023* Colored 10 Oz. 26 Oz. 26 Oz. Travel 25 / 35 Oz. Drinkware Tumbler Stackable Straw Cup Mugs Straw Mugs Drinkware 26 Oz. Jug Jr. Kids 12 Oz. 18 Oz. 46 Oz. / 64 Oz. 26 Oz. Straw Yonder Bottle Straw Bottle HotShot Chug Bottles Hotshot Bottles Bottl
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. BUILT FOR THE WILD, we
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% U.S. dealer reduction from FY15 to FY21 to strengthen our brand, drive merchandising consistency
Slide 15: DTC Channel
DTC CHANNEL YETI ECOMMERCE RETAIL GLOBAL SITES: US 14 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 • 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: Adjusted Q1 2023 Results
ADJUSTED Q1 2023 RESULTS1 ADJUSTED NET SALES $303 $294 Q1 2022 Q1 2023 CATEGORY ADJUSTED NET SALES GROWTH Coolers & Equipment Drinkware $190 $103 $104 $184 Q1 2022 Q1 2023 Q1 2022 Q1 2023 CHANNEL ADJUSTED NET SALES GROWTH Wholesale Direct-to-Consumer $138 $167 $136 $156 Q1 2022 Q1 2023 Q1 2022 Q1 20
Slide 20: Adjusted Q1 2023 Results (Cont'd)
ADJUSTED Q1 2023 RESULTS1 (CONT’D) ADJUSTED GROSS PROFIT ADJUSTED SG&A Adjusted Gross Profit $ / % Margin Adjusted SG&A $ / % Margin $139 / 45.9% $161 / 53.0% $155 / 52.7% $117 / 39.8% Q1 2022 Q1 2023 Q1 2022 Q1 2023 ADJUSTED OPERATING INCOME ADJUSTED EPS Adjusted Operating Income $ / % Margin $38 /
Slide 21: Adjusted Historical Results
ADJUSTED HISTORICAL RESULTS1 ADJUSTED NET SALES ADJUSTED GROSS PROFIT Adjusted Gross Profit % Margin $1,634 $1,000 70.0% $1,411 $900 $860 $816 $800 65.0% $700 $629 $1,092 $600 60.0% $475 $914 $500 $383 57.8% $779 $400 57.6% 55.0% $300 $200 52.0% 52.7% 50.0% $100 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 $312 $351 $253 $235 $155 $80 $73 $90 $55 $55 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 CAPITAL EXPENDITUTRES TOTAL DEBT3 Capital Expenditures % of Adjusted Net Sales $70 10.0% $333 $60 $56 $300 $50 $46 8.0% $40 6.0% $32 $30 $135 $21
Slide 23: FY 2023 Outlook
FY 2023 OUTLOOK (as of 5/11/23) Metric Outlook1,2 Adjusted Net Sales $1.683B to $1.715B Up 3% to 5% YoY Adjusted Gross Margin ~55.0% Adjusted Operating Margin 15.0% to 15.5% Effective Tax Rate ~24.9% Adjusted Income per Diluted Share $2.12 to $2.23 Down 5% to 10% YoY Diluted Weighted Avg. Shares Out
Slide 24: Appendix
APPENDIX 24
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2018(1) 2019(1)(2) 2020(1) 2021(1) 2022(1) Net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 $ 1,595.2 Product recalls(3) — — — — 38.4 Adjusted net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 $ 1,633.6 Gross margin $ 383.1 $ 475.3 $ 628.8 $ 816.1 $ 763.4 Product recalls(3) — — — —
Slide 26: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) 2018(1) 2019(1)(2) 2020(1) 2021(1) 2022(1) Operating income $ 102.2 $ 89.8 $ 214.2 $ 274.9 $ 126.4 Non-cash stock-based compensation expense(4)(10) 13.2 52.3 9.0 15.5 17.8 Long-lived asset impairment(10) 1.2 0.6 1.1 2.5 1.2 Product recalls(3) — — — — 128.9 Business o
Slide 27: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q1 2022 Q1 2023 Net sales $ 293.6 $ 302.8 Product recalls(3) — — Adjusted net sales $ 293.6 $ 302.8 Gross margin $ 154.9 $ 161.9 Product recalls(3) — (1.2) Adjusted gross margin $ 154.9 $ 160.6 Adjusted gross profit 52.7 % 53.0 % Selling, general, and administrative
Slide 28: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q1 2023 Q1 2022 Product Adjusted Product Adjusted Net Sales Recalls(3) Net Sales Net Sales Recalls(3) Net Sales Channel Wholesale $ 135.8 $ — $ 135.8 $ 137.7 $ — $ 137.7 Direct-to-consumer 167.0 — 167.0 156.0 — 156.0 Total $ 302.8 $ — $ 302.8 $ 293.6 $ — $ 293.6 Cate
Slide 29: 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
Slide 30: 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