YETI (YETI) gains as Q2 margins strengthen on lower costs

YETI Holdings, Inc. (NYSE: YETI) shares rose over 2% in pre-open trading Thursday following second results that beat on the bottom line on stronger margins and guidance that was above prior views.

YETI reported that that adjusted EPS fell 10% to $0.57, betting the consensus of $0.46.

Revenue for the quarter fell 4% to $402.6 million. However, adjusted sales, which exclude the unfavorable impact of the recall reserve adjustment, increased 2% to $427.1 million. The Wall Street consensus called for revenue of $411.81 million.

The adjusted sales growth was above the firm's expectations and gross margin performance continues to strengthen as the company is now seeing greater benefit from lower container costs.

Looking to the full year, the company now sees adjusted sales up 4% and 5%, versus prior outlook of between 3% and 5%. They see adjusted EPS between $2.23 and $2.32, versus the previous outlook of between $2.12 and $2.23, and the consensus of $2.19.

By StreetInsider.com Staff

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