Yeti Posts Strong Quarter in Midst of Pandemic
Yeti turned in a blockbuster quarter given the circumstances with increases in both the top and bottom lines.
Sales for the quarter ended June 27 rose 7% to $247 million driven by a surge in e-commerce sales.
DTC sales rose 61%, helping to offset the 24% decline in wholesale sales. Wholesale sales began turning positive toward the end of Q2, however.
The company said online demand rose thanks to the big jump in outdoor recreation and leisure activities during the pandemic, plus more consumers shopped online as they sheltered in place. DTC accounted for 54% of total sales during the quarter.
The increase in e-commerce sales also helped boost gross margin, which hit 55.7% vs. 50.2% in the same quarter last year.
Sales of coolers and equipment overall jumped 18%, while drinkware sales fell 2% because of wholesale closures. Drinkware sales rose online, however.
Adjusted net income increased 40% to $35.6 million.
Yeti also announced during in its earnings presentation that it has signed surfer Mick Fanning as an ambassador.