YETI Holdings, Inc. Q3 FY2025 earnings call

• Product Innovation: Robust pipeline with over 30 new products launched in 2025, including insulated food jars, travel bottles, and the Silo Jug. Innovation centers in Thailand, Vietnam, and others enable global product development. - Brand Expansion: Amplifying brand marketing around YETI's 20th anniversary with a large U.S. campaign, partnerships with sports leagues (NBA, NFL, etc.), and local event activations. - Global Presence: Strong growth in Europe, Asia, Canada, and Australia. Japan's presence scaling quickly with over 270 doors opened, and plans to launch in new Asian markets. - Sports Partnerships: Licensing with major sports leagues and exclusive partnerships with volleyball leagues and clubs.

In the third quarter, Drinkware sales declined 4% to $263.8 million, which was in line with expectations. The U.S. Drinkware market was challenged with promotional activity, but there was strength in key pieces of the portfolio outside the U.S. Coolers & Equipment had strong global sales up 12% to $215.4 million, with bags and soft coolers benefiting from recent innovation. Direct-to-consumer sales grew 3% to $288.7 million, with Amazon Marketplace performing strongly. Wholesale sales increased 1% to $199 million, with international wholesale delivering good growth. International sales outside the U.S. grew 14% to $100.4 million, representing approximately 21% of total sales, with Europe showing outstanding growth led by the U.K. and Asia showing early momentum.

• Full year sales expected to increase 1-2% vs fiscal 2024, with Coolers & Equipment mid-single digits growth and Drinkware slightly down. - International business expected to grow 15-20% in fiscal 2025. - Adjusted EPS between $2.38-$2.49, with share repurchase target upsized to $300 million by year-end. - Capital expenditures projected at ~$50 million, free cash flow expected at ~$200 million.

• Tariff impacts: Approximately $0.40 net unfavorable impact from tariffs this year, with supply chain diversification efforts causing inventory disruptions. - Supply Chain Uncertainties: Continued management of inventory purchases and geopolitical risks. - Consumer Caution: Soft U.S. e-commerce performance and cautious wholesale sell-in in some markets.

Q: Randal Konik asked about the long-term growth potential and building blocks.

A: Matt Reintjes said growth is built on product innovation, brand reach, and global opportunity.

Q: Brooke Roach inquired about sport-focused launches and contribution.

A: Matt Reintjes and Mike McMullen mentioned these are part of Drinkware growth drivers.

Q: Peter Benedict asked about promotional environment.

A: Matt Reintjes said sell-through is strong despite promotions, and DTC conversion is a focus.

Q: Phillip Blee asked about Q4 confidence and Drinkware growth.

A: Michael McMullen said Q4 growth is due to innovation, international growth, and market stabilization.

Q: Alexia Morgan asked about international growth step-up.

A: Michael McMullen said it's due to sustained demand and planned acceleration.

Q: Joseph Altobello asked about tariffs and U.S. sales ex-Drinkware.

A: Michael McMullen and Matt Reintjes discussed tariff impact and U.S. sales strength ex-Drinkware.

Q: Molly Baum asked about Prime Day and holiday read-through.

A: Michael McMullen said holiday period is different with sustained demand.

Q: Noah Zatzkin asked about M&A and long-term growth.

A: Matt Reintjes said M&A is for innovation and channel complement.

Q: Krista Zuber asked about international margins and product launches.

A: Michael McMullen and Matt Reintjes discussed margin profile and innovation cadence.