YETI Holdings, Inc. (NYSE: YETI) reported Q1 EPS of $0.38, $0.17 better than the analyst estimate of $0.21. Revenue for the quarter came in at $247.6 million versus the consensus estimate of $220.37 million.

Matt Reintjes, President and Chief Executive Officer, commented, “YETI had an exceptional start to the year with first quarter net sales growth of 42% fueled by continued strong demand for the brand throughout the period. Significant gross margin expansion powered nearly a 700-basis point improvement in operating margin for the period, contributing to a more than three-fold increase in earnings per share.”

Mr. Reintjes added, “Building upon the outstanding financial performance in the first quarter, we are focused on investments that will accelerate our future growth through global product and channel expansion, innovative marketing, and growing digital capabilities including enhanced data analytics. We believe that these efforts will not only foster a deep connection between our brand and consumers both digitally and, as the world reopens more fully, in a direct, personal way but will also support our plans for long-term, sustainable growth.”

Mr. Reintjes concluded, “After the strong start to 2021, we are raising both our full year net sales and earnings per share outlooks to 20% and 22% growth, respectively, versus the prior year. The YETI momentum carried over from 2020 and on display to start 2021 showcases the passion for the brand and the relevance of our product portfolio as consumers continue to participate in the significant growth in active, outdoor lifestyles. We believe we are well-positioned to generate and build upon this customer enthusiasm for the brand now and into the future.”

GUIDANCE:

YETI Holdings, Inc. sees FY2021 EPS of $2.28-$2.32, versus the consensus of $2.17.

For Fiscal 2021, a 52-week period, compared to a 53-week period in Fiscal 2020, YETI expects:

• Net sales are now expected to increase between 20% and 22% (versus the previous outlook of between 15% and 17%) with sales growth weighted to the first half of the year;
• Operating income as a percentage of net sales is now expected to be approximately 19% (versus the previous outlook of 18.5%);
• Adjusted operating income as a percentage of net sales is now expected to be approximately 20.5% (versus the previous outlook of 20.0%);
• An effective tax rate is now expected to be approximately 24.0%, (versus the previous outlook of 24.5%);
• Net income per diluted share is now expected to be between $2.12 and $2.16 (versus the previous outlook of $1.95 and $1.98), reflecting a 20% to 22% increase;
• Adjusted net income per diluted share is now expected to be between $2.28 and $2.32 (versus the previous outlook of $2.11 and $2.14), reflecting a 22% to 24% increase;
• Diluted weighted average shares outstanding is now expected to be approximately 88.5 million (versus the previous outlook of 88.6 million); and
• Capital expenditures are expected to remain between $55 million and $60 million, primarily to support investments in technology and new product innovation and launches.

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