YETI Holdings Reports 3% Net Sales Increase to $351.1 Million in Q1 Fiscal 2025

YETI Holdings, Inc. reported a net sales increase of 3% for the first quarter of fiscal 2025, reaching $351.1 million compared to $341.4 million in the same period last year. The growth was primarily driven by a 4% rise in direct-to-consumer (DTC) sales, which totaled $196.2 million, and a 1% increase in wholesale sales, amounting to $154.9 million. The company's gross profit also saw a 4% increase, rising to $201.7 million, with a gross margin of 57.4%, up from 57.1% in the prior year. However, operating income decreased to $21.7 million from $25.8 million, reflecting a rise in selling, general, and administrative (SG&A) expenses, which increased by 7% to $180.1 million.

In terms of profitability, YETI's net income for the quarter was $16.6 million, or $0.20 per diluted share, compared to $15.9 million, or $0.18 per diluted share, in the previous year. The increase in net income was attributed to higher sales and improved gross profit margins, despite the rise in SG&A expenses. The effective tax rate remained stable at 29% for both periods. The company reported a decrease in cash used in operating activities, amounting to $80.3 million, down from $103.7 million in the prior year, primarily due to improved working capital management.

YETI's operational developments included the successful integration of its recent acquisitions, notably Mystery Ranch, which was acquired for $36.2 million in February 2024. This acquisition is expected to enhance YETI's product offerings in the bags category. Additionally, the company launched new products, including the Ranchero pack and seasonal colorways for its drinkware and coolers. The company continues to focus on diversifying its manufacturing capabilities beyond China to mitigate the impact of tariffs on its products, particularly in the drinkware category.

Geographically, YETI experienced a 22% increase in international sales, which reached $79.9 million, while U.S. sales decreased by 2% to $271.3 million. The international market now represents 23% of total net sales, up from 19% in the previous year. The company reported a total employee headcount increase as part of its strategy to support future growth, although specific numbers were not disclosed. YETI's cash position at the end of the quarter was $259.0 million, with $300.0 million available under its revolving credit facility, providing a solid liquidity foundation for ongoing operations and strategic initiatives.

Looking ahead, YETI anticipates continued challenges from macroeconomic factors, including inflation and fluctuating consumer confidence. The company is actively pursuing strategies to manage these risks, including supply chain diversification and cost management. Despite these challenges, YETI remains optimistic about its growth prospects, supported by a strong product portfolio and a commitment to enhancing its market presence both domestically and internationally.