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YETI (NYSE:YETI) Takes a Tumble on Q4 Miss
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YETI (NYSE:YETI) Takes a Tumble on Q4 Miss

Story Highlights

YETI shares are under pressure today after the company’s lower-than-expected fourth-quarter results overshadowed its two recent acquisitions and announcement of a $300 million share buyback.

YETI Holdings (NYSE:YETI) shares are down nearly 9% today after the outdoor products provider’s fourth-quarter results fell short of expectations. While revenue increased by 16% year-over-year to $519.8 million, the figure still lagged estimates by $16.2 million. Additionally, EPS of 0.90 missed the consensus by $0.06.

YETI’s fourth quarter was marked by a 12% increase in Drinkware sales and a 44% jump in International sales. Additionally, the company’s cash pile soared by 87% to $439 million. At the same time, it witnessed cautious consumer spending in its higher-ticket Coolers and Equipment category.

The company has been focusing on boosting its commercial channels, investing in direct-to-consumer channels, and expanding in international markets. Additionally, offerings such as Rambler straw lid mugs, Rambler & Yonder bottles, and tabletop solutions are tracking well.

For Fiscal Year 2024, the company expects adjusted sales to increase by 7% to 9%. Adjusted EPS for the year is anticipated to land between $2.45 and $2.50. Notably, YETI has announced a share repurchase program of up to $300 million.

Recently, YETI acquired Mystery Ranch, a producer of bags and backpacks, and Butter Pat, which is focused on cast iron cookware. The company executed the two transactions for a total consideration of $48.5 million.

Is YETI a Good Stock to Buy Now?

Toady’s price decline further adds to the nearly 7% drop in YETI’s share price so far this year. Overall, the Street has a Hold consensus rating on YETI alongside an average price target of $47.71.

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