Matt Reintjes, President and Chief Executive Officer, commented, “Demand and passion for the YETI brand remained robust during the second quarter. Net sales surged 45% during the period, driven by strong direct-to-consumer performance throughout the quarter including Mother’s Day and Father’s Day, significant year-over-year recoveries in channels such as wholesale that experienced outsized impacts during the pandemic, and a more than three-fold gain in our international business. This topline performance combined with better-than-planned operating margins fueled 66% earnings per share growth for the quarter.”
Mr. Reintjes concluded, “The ongoing momentum in the business continues to be supported by the incredible execution of our team and many brand partners. We remain diligent and thoughtful as we contain and mitigate global supply chain volatility and cost pressures, with a focus on what we directly control – driving brand passion, consideration, and demand. Our conviction and discipline in these areas support our increased full year net sales and earnings per share outlooks for the year.”
For the Three Months Ended July 3, 2021
Net sales increased 45% to $357.7 million, compared to $246.9 million during the same period last year.
*Direct-to-consumer (“DTC”) channel net sales increased 48% to $196.9 million, compared to $133.0 million in the prior year quarter, driven by strong performance in both Drinkware and Coolers & Equipment. The DTC channel grew to 55% of net sales, compared to 54% in the prior year period.
*Wholesale channel net sales increased 41% to $160.8 million, compared to $113.9 million in the same period last year, driven by both Drinkware and Coolers & Equipment. In the second quarter of 2020, wholesale channel net sales were adversely impacted by the temporary store closures due to COVID-19.
*Drinkware net sales increased 69% to $192.9 million, compared to $114.3 million in the prior year quarter, primarily driven by the continued expansion of our Drinkware product offerings, including the introduction of new colorways and sizes, and strong demand for customization.
*Coolers & Equipment net sales increased 23% to $157.8 million, compared to $128.6 million in the same period last year, driven by strong performance in soft coolers, bags, outdoor living products, cargo and hard coolers.
Gross profit increased 52% to $209.1 million, or 58.5% of net sales, compared to $137.5 million, or 55.7% of net sales, in the second quarter of 2020. The 280 basis point increase in gross margin was primarily driven by a favorable mix shift to our DTC channel, product cost improvements, and lower inventory reserves, partially offset by the unfavorable impact of the non-renewal of the Global System of Preferences program on import duties and higher inbound freight.
Selling, general, and administrative (“SG&A”) expenses increased 50% to $136.7 million, compared to $91.0 million in the second quarter of 2020. The 2020 period included the benefit of cost reduction initiatives implemented in response to COVID-19. As a percentage of net sales, SG&A expenses increased 140 basis points to 38.2% from 36.8% in the prior year period. This increase included 220 basis points increase in non-variable expenses, primarily driven by higher marketing expenses. Variable expense leverage of 80 basis points on higher net sales positively impacted the quarter.
Operating income increased 56% to $72.4 million, or 20.2% of net sales, compared to $46.5 million, or 18.8% of net sales, during the prior year quarter.
Adjusted operating income increased 57% to $77.4 million, or 21.6% of net sales, compared to $49.3 million, or 20.0% of net sales, during the same period last year.
Net income increased 68% to $56.2 million, or 15.7% of net sales, compared to $33.5 million, or 13.6% of net sales, in the prior year quarter; Net income per diluted share increased 66% to $0.63, compared to $0.38 per diluted share in the prior year quarter.
details at: https://investors.yeti.com/news/news-details/2021/YETI-Reports-Second-Quarter-2021-Results/default.aspx