YETI Holdings, Inc. (NYSE: YETI) reported Q4 EPS of $0.38, $0.03 better than the analyst estimate of $0.35. Revenue for the quarter came in at $241.2 million versus the consensus estimate of $226.45 million.

• Net sales increased 19% to $241.2 million
• Gross margin improved 690 basis points to 53.0%
• Net income increased 533% to $25.2 million, or $0.30 per diluted share
• Adjusted Net Income grew 379% to $32.0 million, or $0.38 per diluted share
• Adjusted EBITDA increased 58% to $52.2 million

Matt Reintjes, President and Chief Executive Officer of YETI Holdings, Inc., commented, “We finished 2018 with significant momentum in our business as we delivered full year results well above our original outlook and solidly at the high end of the revised outlook. We are extremely pleased with the strength in our business as our brand and products continue to resonate with consumers across all markets. We look forward to building on that momentum throughout 2019 as we continue to expand our customer base, drive product innovation, grow our direct-to-consumer business, and expand internationally.”

GUIDANCE:

YETI Holdings, Inc. sees FY2019 EPS of $0.99-$1.04, versus the consensus of $0.96.

For Fiscal 2019 the Company’s Outlook is as follows:

• Net sales to increase between 11.5% and 13% compared to Fiscal 2018 with growth across both channels led by the DTC channel;
• Operating income as a percentage of net sales between 13.9% and 14.4%, reflecting margin expansion of 80 to 130 basis points, primarily driven by higher gross margin;
• Adjusted Operating Income as a percentage of net sales between 15.9% and 16.3%, reflecting margin expansion of flat to 40 basis points, primarily driven by higher gross margin;
• An effective tax rate at a more normalized level of approximately 24.5%;
• Net income per diluted share between $0.84 and $0.89, reflecting 22% and 29% growth; assuming a normalized tax rate of 24.5% in 2018, earnings growth would be between 34% and 42% (the effective tax rate for 2018 was 17%);
• Adjusted Net Income per diluted share between $0.99 and $1.04, reflecting 10% to 15% growth; assuming a normalized tax rate of 24.5% in 2018, adjusted earnings growth would be between 18% and 24% (the effective tax rate for 2018 was 17%);
• Diluted weighted average shares outstanding of 86 million;
• Adjusted EBITDA between $169.0 million and $174.3 million, reflecting 13% to 17% growth;
• Capital expenditures between $35 million and $40 million; and
• Debt repayments of approximately $80 million and a ratio of net debt to Adjusted EBITDA of approximately 1.0 times at the end of Fiscal 2019 compared to 1.7 times at the end of Fiscal 2018.

For earnings history and earnings-related data on YETI Holdings, Inc. (YETI) click here.