YETI Holdings, Inc. · NYSE:YETI
YETI — Q4 2023 Earnings Presentation
31 slides from YETI's earnings presentation, Feb 15, 2024
Slide 1: Fourth Quarter and Fiscal 2023 Highlights
Fourth Quarter and Fiscal 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: Q4 2023 Highlights
STRATEGIC PRIORITIES: Q4 2023 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Consistent breadth & depth strategy of broadening reach while remaining deeply connected and relevant to customers Connected ambassadors, partners, brand, and product storytelling to customers on both a global and localized scale Le
Slide 4: FY 2023 Results at a Glance
FY 2023 RESULTS AT A GLANCE ADJUSTED FY 2023 FY 2023 ADJUSTED NET SALES1 FINANCIAL METRICS1 $1.68B Net Sales +3% Net Sales Growth Coolers & -5% +8% Equipment Coolers & Equipment Drinkware 37% $1.68B Drinkware 61% +9% -5% Wholesale DTC Other2 2% $263M Operating Income 15.6% Operating Margin 1. Based
Slide 5: Brand & Product
BRAND & PRODUCT 5
Slide 6: Growing Diverse, Global YETI Communities
GROWING DIVERSE, GLOBAL YETI COMMUNITIES 2006 Community Reach FISHING HUNTING 2023 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 182 Ambassadors 6
Slide 7: Extensive Media Reach
EXTENSIVE MEDIA REACH LARGE AND GROWING EARNED MEDIA AWARDS SOCIAL MEDIA PRESENCE Followers1 5.4M 5.3M 4.8M 2.0M 1.2M 1.1M 1.0M CROSSROADS 40L RAMBLER HOTSHOT RAMBLER 20OZ 782K DUFFEL BAG BOTTLE & RAODIE 24 TUMBLER 635K HARD COOLER 625K BROAD EARNED MEDIA COVERAGE 1. Instagram followers as of Februa
Slide 8: Media Highlights
MEDIA HIGHLIGHTS AdAge FOODSWINE —_onappétit ET THE AO BEST ADS OF 2023 —Witistesiomtect ra Special Tho 36 Best Gifts for Your 7 . 4 This Holiday Season The 20 Best Gifts for Boyfriends That He'll | 3. Yeti ‘For Every Single Use My Dad Is Impossible to Shop for, Outdoorsy Friend Who Actually Use: Sh
Slide 9: Coolers & Equipment Evolution
COOLERS & EQUIPMENT EVOLUTION 2017 2018 2019 2020 2021 2022 20231 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® Hopper® Hopper BackFlip™ Lunch Bag M30 Lunch
Slide 10: Drinkware Evolution
DRINKWARE EVOLUTION 2017 2018 2019 2020 2021 2022 2023 4 Oz. / 6 Oz. / 8 Oz. Stackable Cups and Mugs Colored 10 Oz. 26 Oz. 26 Oz. Travel 25 Oz. / 35 Oz. Drinkware Tumbler Stackable Straw Cup Mugs Straw Mugs Drinkware Yonder Bottles 18 Oz. / 26 Oz. w/ Tether Cap Color-Match 0.6L / 1.5L Straw Caps 26
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: Accelerating Innovation Through M&A
ACCELERATING INNOVATION THROUGH M&A Mystery Ranch • Founded in 2000, Bozeman, MT-based Mystery Ranch is a designer and manufacturer of durable, load-bearing backpacks, bags and pack accessories for some of the world’s toughest environments and most demanding users. • YETI completed the acquisition o
Slide 13: Channels & Supply Chain
CHANNELS & SUPPLY CHAIN 13
Slide 14: 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 15: 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 16: DTC Channel
DTC CHANNEL YETI ECOMMERCE RETAIL GLOBAL SITES: US 18 Stores Canada Australia New Zealand EU France Germany Ireland Italy Netherlands UK CORPORATE SALES YETI AUTHORIZED 16
Slide 17: 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 18: 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 19: Financials
FINANCIALS 19» BUILT £OR THE WILD, YETI
Slide 20: Adjusted Q4 2023 Results
ADJUSTED Q4 2023 RESULTS1 ADJUSTED NET SALES $517 $486 Q4 2022 Q4 2023 CATEGORY ADJUSTED NET SALES GROWTH Coolers & Equipment Drinkware $346 $169 $162 $308 Q4 2022 Q4 2023 Q4 2022 Q4 2023 CHANNEL ADJUSTED NET SALES GROWTH Wholesale Direct-to-Consumer $344 $171 $173 $316 Q4 2022 Q4 2023 Q4 2022 Q4 20
Slide 21: Adjusted Q4 2023 Results (Cont'd)
ADJUSTED Q4 2023 RESULTS1 (CONT’D) ADJUSTED GROSS PROFIT ADJUSTED SG&A Adjusted Gross Profit $ / % Margin Adjusted SG&A $ / % Margin $311 / 60.2% $209 / 40.3% $264 / 54.3% $175 / 36.0% Q4 2022 Q4 2023 Q4 2022 Q4 2023 ADJUSTED OPERATING INCOME ADJUSTED EPS Adjusted Operating Income $ / % Margin $103
Slide 22: 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 23: 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 24: FY 2024 Outlook
FY 2024 OUTLOOK (as of 2/15/24) Metric Outlook Adjusted Net Sales $1.798B to $1.832B Up 7% to 9% YoY Adjusted Gross Margin ~57.5% Adjusted Operating Margin ~16.0% Effective Tax Rate ~25.3% Adjusted Income per Diluted Share $2.45 to $2.50 Up 9% to 11% YoY Diluted Weighted Avg. Shares Outstanding ~87.
Slide 25: Appendix
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Slide 26: 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 27: 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 28: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q4 2022 Q4 2023 Net sales $ 448.0 $ 519.8 Product recalls(3) 38.4 (2.8) Adjusted net sales $ 486.4 $ 517.0 Gross profit $ 167.0 $ 315.2 Product recalls(3) 97.0 (4.1) Adjusted gross profit $ 264.0 $ 311.1 Adjusted gross margin 54.3 % 60.2 % Selling, general, and admin
Slide 29: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q4 2023 Q4 2022 Product Adjusted Product Adjusted Net Sales Recalls(3) Net Sales Net Sales Recalls(3) Net Sales Channel Wholesale $ 174.9 $ (2.0) $ 172.9 $ 138.5 $ 32.2 $ 170.7 Direct-to-consumer 344.9 (0.8) 344.1 309.5 6.2 315.7 Total $ 519.8 $ (2.8) $ 517.0 $ 448.0
Slide 30: 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 31: 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