YETI Holdings, Inc. · NYSE:YETI
YETI — Q3 2023 Earnings Presentation
29 slides from YETI's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Highlights
Third 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: Q3 2023 Highlights
STRATEGIC PRIORITIES: Q3 2023 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Leveraged integrated brand and product stories to strengthen connections with broad and diverse global communities Added global ambassadors and partners from Europe to Canada to Japan, spanning fishing to culinary Expanded “Every Si
Slide 4: Q3 2023 Results at a Glance
Q3 2023 RESULTS AT A GLANCE ADJUSTED Q3 2023 Q3 2023 ADJUSTED NET SALES1 FINANCIAL METRICS1 $434M Net Sales +0% Net Sales Growth Coolers & -8% +6% Equipment Coolers & Equipment Drinkware 40% $434M Drinkware 58% +14% -16% Wholesale DTC Other2 2% $71M Operating Income 16.5% Operating Margin 1. Based o
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 5.2M 4.7M 1.9M 1.1M 1.0M 1.0M RAMBLER® TUNDRA® 65 HARD CROSSROADS® 26 OZ WATER BOTTLE COOLER & HOPPER® 629K 27L BACKPACK WITH CHUG CAP M30 SOFT COOLER 588K BROAD EARNED MEDIA COVERAGE 1. Instagram follo
Slide 8: Media Highlights
MEDIA HIGHLIGHT Traveler FAST@MPANY Why Yeti’s pretty wild documentary grant is a NATIONAL*POST genius move an & orbes FIELD & STREAM recommended by reviewers The Yeti Cooler Buying Guide—Find One That's Right for You Yeti Released New Hopp FINANCIAL TIMES The 7 Best Tackle Boxes —Cgolers Just In Ti
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 20231 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: 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% 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 17 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 Q3 2023 Results
ADJUSTED Q3 2023 RESULTS1 ADJUSTED NET SALES +0% $434 $434 Q3 2022 Q3 2023 CATEGORY ADJUSTED NET SALES GROWTH Coolers & Equipment Drinkware $186 $253 $172 $239 Q3 2022 Q3 2023 Q3 2022 Q3 2023 CHANNEL ADJUSTED NET SALES GROWTH Wholesale Direct-to-Consumer $206 $259 $174 $227 Q3 2022 Q3 2023 Q3 2022 Q
Slide 20: Adjusted Q3 2023 Results (Cont'd)
ADJUSTED Q3 2023 RESULTS1 (CONT’D) ADJUSTED GROSS PROFIT ADJUSTED SG&A Adjusted Gross Profit $ / % Margin Adjusted SG&A $ / % Margin $250 / 57.8% $179 / 41.3% $222 / 51.3% $149 / 34.4% Q3 2022 Q3 2023 Q3 2022 Q3 2023 ADJUSTED OPERATING INCOME ADJUSTED EPS Adjusted Operating Income $ / % Margin $73 /
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 (as of 11/9/23)
FY 2023 OUTLOOK (as of 11/9/23) Metric Current Outlook1 Prior Outlook1 Adjusted Net Sales ~$1.7B $1.699B to $1.715B Up ~4% YoY Up 4% to 5% YoY Adjusted Gross Margin ~56.5% 55.5% to 56.0% Adjusted Operating Margin ~16.0% 15.5% to 16.0% Effective Tax Rate ~25.1% ~25.1% Adjusted Income per Diluted Shar
Slide 24: Appendix
APPENDIX a st Wer poTTE? | U Be page te tt + 2 BUILT FOR THE WILD, YETI
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) Q3 2022 Q3 2023 Net sales $ 433.6 $ 433.6 Product recalls(3) — — Adjusted net sales $ 433.6 $ 433.6 Gross profit $ 222.4 $ 251.3 Product recalls(3) — (0.8) Adjusted gross profit $ 222.4 $ 250.4 Adjusted gross margin 51.3 % 57.8 % Selling, general, and administrative
Slide 28: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q3 2023 Q3 2022 Product Adjusted Product Adjusted Net Sales Recalls(3) Net Sales Net Sales Recalls(3) Net Sales Channel Wholesale $ 174.1 $ — $ 174.1 $ 206.2 $ — $ 206.2 Direct-to-consumer 259.5 — 259.5 227.4 — 227.4 Total $ 433.6 $ — $ 433.6 $ 433.6 $ — $ 433.6 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