YETI Holdings (YETI -3.14%) held its fourth-quarter and fiscal-year 2024 earnings call on February 13, 2025. Despite competitive pressures and macroeconomic headwinds, YETI delivered solid growth and continues to expand its brand globally.
Yeti (YETI -0.22%) has established itself as a premium brand in the outdoor recreation and lifestyle products industry. Let's take a closer look at how this cooler and drinkware maker stacks up according to Motley Fool's AI-powered Moneyball analysis.
YETI Holdings, Inc. is a premium outdoor brand with effective growth strategies in product enrichment and international expansion, warranting a "BUY" rating with a $52 target price. Key growth drivers include expanding product lines and international revenue growth, which is outpacing US revenue and expected to reach 40-50% of total revenue. Strong recent results with 9% revenue growth, 59% gross margin, and robust cash management.
Although the revenue and EPS for Yeti (YETI) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
AUSTIN, Texas--(BUSINESS WIRE)--YETI Holdings, Inc. (“YETI”) (NYSE: YETI) today announced its financial results for the fourth quarter and fiscal year ended December 28, 2024. YETI reports its financial performance in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and as adjusted on a non-GAAP basis. Please see “Non-GAAP Financial Measures,” and “Reconciliation of GAAP to Non-GAAP Financial Information” below for additional information and reco.
YETI's fourth-quarter 2024 results are likely to reflect solid segmental and international business growth.
Yeti (YETI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Shares of YETI have declined ~20% over the past year, presenting a great buying opportunity at ~13x forward P/E. The company is achieving international sales growth of over >30%, while also extending its product lines into new categories like cookware that are expected to boost TAM by $10 billion. Concerns over tariff exposure are mitigated by YETI's strategic shift in Drinkware production outside of China, aiming for 50% by the end of 2025.
YETI Holdings has a durable competitive advantage in both online and brick-and-mortar channels, driving international growth and high-quality earnings. The company's DTC channel has seen a 40% CAGR over 10 years, with international sales now 18% of revenue as the company gains market share. YETI's financial performance shows robust growth, with significant increases in sales and margins, supported by effective cash flow management and strategic debt repayment.
YETI Holdings, Inc. is an iconic premium brand with solid fundamentals, presenting a value opportunity for double-digit returns over the next few years. Recent earnings beat, with strong growth in sales and margins, supported by strategic collaborations and a robust holiday season outlook. YETI's valuation metrics indicate significant discounting, with high gross margins and a strong share buyback program enhancing shareholder value.