YETI (YETI) 13 May 212021 Q1 Earnings call transcript

Greetings, and welcome to the YETI First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. of for President Vice Shaw, Investor YETI. Relations Tom you. Thank

You may begin.

for Good discuss joining YETI Thanks Holdings to us morning. results. Quarter XXXX

our Before that statements And statements various on related our remind materially such to the impact statements forward-looking today we'd may could differ COVID-XX some and actual to this from risks begin, pandemic the on the the results make that to be you including are statements. call, business, cause subject of of to uncertainties we we that like these considered forward-looking.

please or or detailed press this associated information, X-K, any otherwise, law. today made update events morning, XX-Q result more both refer our Form by revise the with release. For forward-looking new except to statements We the factors and information a SEC required or along as in undertake risk filed no as of the with to Form obligation

underlying Today's represent Matt of lead they of accurately as performance and financial discussing CEO Reconciliations the President Reintjes, call to to we'll this pertaining Paul certain morning. release today, business. results measures call issued directly most We in and their these CFO. true our and of we our more our are the Carbone, comparable will be operational by believe discussions GAAP in press non-GAAP some as be led During the included YETI; non-GAAP measures measures of periods. non-GAAP use fiscal completed measures

questions. that, over Matt. to Following our open call the prepared I'll turn for remarks, call With we'll the your

and everyone. Thanks, Tom, good morning,

XXXX. of wholesale. of businesses our performance including At is and the momentum digital YETI off across heart is XXXX, the YETI a this for to start outstanding strength at an in brand, great sell-through Following exceptional global demand the

drive our performance focus last and the our would that highlighted believe we year. themes During throughout two we commentary quarter,

in are performance, but focused active that activities to customers rooted customers such not as backyard durability positions meaningful as drives approach First, YETI's We by pursuits, people believe connection with on brand sports brand storytelling products us about and outdoor ways. we versatility. real, are disrupted weekend relevant this lifestyle in commuting, were This with talked and only also connect for always ability balances demand pandemic, the the that increasingly gatherings. as for continued resume success this and

of e-commerce shaped analytics highlight we strategy data our has focus with do we are initiatives demand Second, emphasis digital our digital-led both This importance and stack technology complement on a world. our XXXX to store. what ensuring partner YETI the investment actively wholesale continuing product an we creation, on launch, and driving in

demand reflecting channel, we this Equally store continued our which new the both of categories rollout Equipment, and the quarter have a top areas. growth company by by rate & is led company sales the remained growing result the over for and strong bottom XX%, highest was were growth up Our registered coolers driven highlighting growth of period, very a Coolers soft sustained bags. net is growth these for hard we the sales in in have of two in wholesale strength support XX% nearly Both registered to areas. performance sell-through as Direct-to-consumer Direct-to-consumer these toward shift of retail. a a XX%, demand important, highest our XX%, the sell-in by of for focus public public ongoing robust, growth as and incredible we led ongoing the channel. of result to two primary XX%, saw the rate focus at

the digits an sales global triple business to the high YETI International period regions. momentum Our all-time grew good with of net X% for across reach of

our our period. initial including to with deepening given Combined, gross margin adjusted elements many our performance, during XX% gross tripled XXX learning good for three across ago basis EPS progress margins we of XX.X%. XXXX are e-commerce growth expanded same period conjunction points In key to than international of of years side, very share. the investments $X.XX infrastructure. per just The build-out testing Incredible On at our the bags and made the of performance the we the more we machine our experience evolving official also continued inform of financial of and new launch collection our margin of

to and to actively support costs. While supply global landscape control managing our deliver is pressures strong see materials, on team we to the and demand chains, changing logistics continue supply

relates pandemic, are we to focused demand. the it strength chain ongoing of are on supply incredible seeing continued to in As we global support our the the COVID-XX health

XXXX With the year. for increasing to to XX% outlook line top start our XX% the our full are strong fiscal we year, to

expand to scale. These our we are build to the base and to look foundational story, sustainable consistent, on upon billion product. thoughtful our our we and execution blocks As of beyond focused remain $X brand expansion that YETI continue will growth enable and building

growth provide our for the that help our strategic me will focus of let and growth specific priorities results our highlights across balance support some four Now QX year. the drive

our brand collection. the of included awareness debuting our This and diverse showcased City placements new a this strategy sustained and created broad on of an marketing reach deliver digital that consumers was power backpacks, Los we Angeles, drive latest our and in, digital online put ads efforts product with and series launch of product first through and fulsome messaging of and From included marketing the key print through a lens channels, digital perspective, and New of reaching in focusing building product. more out a creative billboard bags across off-line campaign awareness traditional We product strategy you and the side, complement publications, creative to the to on York markets designed On a and duffels get our content Through expansive to key national audiences range quarter overarching energy the educate Dallas new efforts. and attributes. support luggage cascaded what brand this intended in XXXX.

e-commerce XD functionality. product depth and videos detailed through first content walk-through imagery elevated our unpack AR We also to wild and the features, yeti.com product in our added based

tough our product the put drive nylon of awareness creation sustained This skin barrel the is intersection YETI and and understanding efforts uniquely utilized the bowl in a where highlight test. media with our to find brand on ways and of video quarter bags the to bags product includes of focus of product a Crossroads social we series to durability Our effort This introductions. and comprehensive decide launch informing versus future challenges how to engagement. a any followers our assisted

play, awareness execution of broader were breadth continue diversity expansion and big with While the globalization. is and we focus a also focus a bags both marketing sharper strategy our scale, depth and on brand product a

debuted a with for Three Our Natural the YETI in partnership as sustainability engagement first sponsor in the Hole, Jackson ongoing of selection the title Selections series Stop the partner with our natural as Wyoming, event February snowboarding series. and

with of of Van the in we very TV the also Red Robin snow-border athletes, tour, the series. brand. to proud overall and bring winner expanding Bull With Rice was that Travis unique to partnered of female We're ambassadors Jean the global owned roster one our awareness globally-renowned our reach leveraged the of

we about brand. successful As are always, say to the how from what true testament others efforts in a comes our

consecutive well year. brand as the of we Cooler the were as second For the the Year named EquiTrend Insulated Brand Harris the Drinkware Poll year, of

multifaceted art with adventure XXXX, and elements integrate its recognizing XXrd celebrating brand most will named brand including nearly consumer execution, innovative in year, YETI brands and approaches also X as and for SaaS these more future brand connection, compelling branded equity, of momentum by YETI business. categories. compares measures Now for a the ESG the study across X,XXX XXX into of determined for this our how companies company The content. creative and YETI XX be

We and integrity, impact are making responsibility on partners at our large. committed the to customers, a operating while positive and market employees, with

efforts, these Industry as the emissions. commitment YETI gas joined Corp to reduce Climate As and of Association's part our Outdoor a greenhouse a member founding with Action measure of

baseline this direct our set informed emissions and our established for will have targets later year. We

on developed of we can ethos part it published do website. the now it product durability report in find the inside over recently year. focus built and to the all several as on first that Shifting ESG from which More came inaugural to ESG continue program we of and just we live also will our chemical for We you YETI, substances with end spirit. our the to broadly, forms restricted are our quarter. launch brand wild by our and start and track expect management consider we has innovation during our At list, the product, our

of prior new healthy the obviously shine continue year across a we see While spotlight demand product to introductions, level our portfolio, including we launches. on

to hard the inventory XXXX, of seeing for XX limited Roadie the great wholesale last and debut year, due are a cooler. then Cooler strengths. For had example, opening first, this COVID-XX Hard In price point we demand demand-driven onset

spring, our with our focus stoking standardized a a products Men's publications. new MagSlider all received range stated from adventure. existing designed effectively safe nearly to and are wheeled three YETI: after a and lineup right sturdy, and with worth Journal the money packing, made. debut This these the Pear are of products. of with by launch spent luggage. the CNN color thoughtfully bags are we of handsome, particularly out the duffels over creating our tool strong so or carrying, those also color go-to-market be luggage solid, a new our at pleased your box, for that any and you'd across the two sizes durable were size which backpacks, and of powerful damn a say reengage. added, for consider two customer well precisely And to plenty clear of a We of Bags And media to ready to Supported ones way. reason interest soft-sided across see new a and we Lid upgrading top-notch continues strategy, of range Prickly tumblers expect sizes from what recognition month of the and it's weighing

XX large launched the well we on trend oz and bags, capacity for bottles. given is Rambler to addition In which performing bottle, the desire

apparel fits. also have social a evolution the may In more seen you release market in current debuted response limited positive We the Orange refreshed way to color inclusive including our continued assortment, sentiment. to new, King quarter, introduce as also spring we our Crab

strength sustained inventory, against will continue across and in as Additionally, the moms, execute last demand quarter, we mentioned key channel season. grads as gift-giving rebuild to particularly dads we

XX% quarter our DXC Moving surpassing of omni-channel fourth we strategy, our our of reaching sales. to XX% net registered consecutive net sales, of QX mix

to opportunity at continue We see wholesale. a significant

throughout progress, our the for will the demand year. versus ongoing continue accounts. numbers of move year-over-year While demand show This important focus continues many quarter with be inventory on-hand inventory to to velocity replenishment team sell-in drive key the declines strong of for sell-through as balance our we an

at we Looking at demand continue the be performance for of in growth encouraged to geographies, great Pacific, we've started by regions, our channels, and quarter, direct balance and was yeti.com Mountain the New where including England across healthy strong a increases in and historically strong changing, growth. from Amazon brand we're returning is was being that and traffic, of conversion Growth healthy Overall result marketplace growth awareness also balance by on strong. existing lower in But a customers. seeing the driven is the the and

remains to closed or outbound supported today they yet last business and sales structure are the were to much compared and sales international retail corporate fully YETI not increased launched Our options. business and when more typically. our pandemic customization by developed due e-commerce year And for healthy, productive

are direct our support progressing think the believe we in drive As relevance opportunities business on increased to we digital two and we going will measures customer. further growth forward, that about

be learn During our used This on also cohorts right of a to to International we customer thinking, series conversion tests and with platform adopt our began around data based with e-commerce are e-mail of design targeted to flow certain YETI messaging a new site. as focus we encouraging engagement implement. ultimately repeat continue tailor modular of show of applying iterative customer agile design consumer These will drive an and test, method across the analytics the learning quarter, the purchase. resonates personalized be process content the results Early first to through an goal aspects a that machine excellent upon can inform progress. time. and will mobile-first where at experiences and continues highly ultimately the right and

growth X% first sales, about to mix We high. are quarter wished during up triple-digit our a we the YETI international of new net the fired

to strong. and see of Canada, Canada holding in globally. brand Looking results, both affirm continues and In market success closer translate is to and our remains to our effective that product in and wholesale COVID-related DTC product performance while the ongoing well our many and strategy outstanding and Australia core channel disruptions, continues brand relevant are our the elements our

We have is YETI in localized in we customers. relevance stories Canada, lens consideration and we Canada, we tell increased is made a which in how in increased significant driving localized with also believe lens driving strides which believe

As National Hockey license anticipated, was the debut of League received. the Drinkware well

unbelievable Australia, and totaling year's to our historical of runs, volume. first the evolution quarter momentum of is highlighted of brand's last Moving over year half U.S. reminiscent sales by growth some full

the and focus our in deeper the awareness based here on analysis. data language markets. we driving five Italy, penetration Germany, adding and will be continued dense In France, Netherlands period, e-commerce Our more customer population new Europe, and upon sites during coastal launched the local search Ireland,

double-digit locations wholesale region. In XX addition, doors now our over including XXX have countries. efforts across open the doors, in We we accelerated to

ensure basics, greater marketing adapting a excelling is that appropriately to new or relevance are of market growing leveraging end levels is that that range overarching to to we authentically represent dealers whether global across Our of brand these the customers partnering with awareness. for approach YETI at markets while create

reiterate team creativity like his want we future transition I out innovation. Before through down continue a from public to points. to and seen, product the have I thank may development In for Roy as for company. the Cedars, Roy advising Board elected Board his of will being call as step to support of our the I YETI quarter, passion of our the closing, financial our has our Directors. you of to to would Paul details founder Roy to four bring build turn

supporting First, actively while continued strength the COVID-XX supply chain. disruptions we of are persist, our

for demand strong firmly Second, product the brand remains and intact.

sustainable success. digitally like our I to partners I to thanking turn our on the remiss and we be customers for hyper long-term do And YETI call scaling to are without Third, they future. we finally, are would our growth. led focused on decision now making support our the investments over that global prioritizing to all finish would team, deliver support Paul. to

was Thanks, with first the what an thoughts incredibly I'll start year updated and Matt, good and our morning. of the review balance strong followed by of a on quarter, outlook.

the to million across sales $XXX.X prior pleased very open we $XXX.X questions. XX% with your compared then for call will were Brands Net was then the prior XX for for of all broad-based increased period. million our period. year up in the and momentum XX% impact of We period. to weeks the period the weeks sales final during increased net execution Notably, three against the XX% year the the beginning first quarter the increased COVID of channels, in the

have period. was All year's our driven our to by at to to million categories. and remaining $XX.X compared sales million to period vast encouraged resulting standardized tumblers. million strength this million $XXX.X incredible our with our vitality outpace X% February. Coolers by SG&A from driven net last net net year-over-year. momentum last hard of for to compared or reach channel grew for Coolers products for points performance of sales from compared to for both million accounts. basis sales to expanded period the heritage sales Chubb increased net to the XX% by performance compared our the Equipment Adjusted quarter, $XX.X growth drove in year. same $XXX.X XXX in of either XX% XX% increased million sliders initial sales to during where sales XX that our of as mug cost our in again, our Australia also on Demand compared Equipment performance mix XX% across sales. compared same XXX% $XXX.X to percentage following inbound a lid customization $XX.X net coaster Demand This quarter or performance, demand closer points and of last from debuted caps operating The approximately as solutions ongoing Drinkware across We increase towards $XX.X as $XX.X during product points broad-based was XX% and Drinkware levels XXX increased total rose robust $XXX.X sales performance. of Equipment & driven and million impacts. The $XX.X come expenses other line margin yeti.com increased million to year. majority same last XX-ounce and as $XXX.X of bottles, shift soft and variable year. our was the million sizes, compared channel and Sell-through non-variable, net million and line Adjusted points as year. than during profit & net Wholesale as in of lower basis the basis a Looking the continue strong the corporate highly of both period decrease in period well strength last Wholesale basis by coasters first $XX.X or Rambler Drinkware to & mix, direct-to-consumer net like or we for by with increased XXX were drinker mugs, particular freight, contributions to all XXX% the across of sell-in million category, XX% or net K. from net The period the By for compared $XX our points inventory by to down channels. million channel the bottles to improved and XX% higher from strong basis the newer increased continues point also channels Direct-to-consumer net expense our direct-to-consumer was in last sales sales remains more during to channel categories. driven factors: or mix coolers sales points basis direct-to-consumer grew period In with by This tumblers year. sales last yeti.com. growth XX% million Rambler jugs. net late Canada, reception the in in Coolers favorable includes across increased XX expansion percent sales to SG&A bags XX.X% that basis the same basis strong expenses decreased points to same million XX.X% threefold Gross Europe. was year. XX.X% top led direct-to-consumer of new to basis $XXX.X in of XXX net period gross driven to a as year-over-year lower XXX XX% all of U. XXX quarter our last basis by collection by net expanding of XX.X% from from and the sales points faster-growing well channel. in XX% sales the year. XXX tariffs, improvements, by net from points XXX lineup income Internationally, of

$X.XX Our tax tax income XX.X% share quarter compared year's $X.X income compared last year $XX.X reflects first to the first during $X.XX in during period. to coupled prior or discrete rate lower effective our share or quarter. increased benefit, quarter, a for the net rate diluted per quarter. lowest million diluted volume The to was the Adjusted per million XX.X% with

million excluding leases million million ago to $XXX.X year $XXX.X Now from chain million year's fees in-stock deferred last $XXX.X million X% the Total we Inventory of compared finance levels. April our to to year, efforts of unamortized $XXX.X during to same financing debt end and X, XXXX, at $XXX.X balance we cash first last last to quarter. our rebuild sequential was in turning the as improvement continue as supply quarter significant compared period. a quarter to million had compared the sheet, $XXX.X of declined

we During of made the principal $X.X quarter, payments million.

total we For were quarter, the as position exceeded cash a second net straight in on hand cash debt.

XX% both first for full of to sales remainder year outlook. and We by outlook, compared Now increase raising bottom the our quarter visibility XX% and and our net updated full incredibly line our to between on fiscal year we XXXX. strong to now the expect an supported are year, top XXXX

of strongest for be two the the sales in double-digit we final growth quarters each while ongoing balance we reflecting QX, strong year, the will the growth demand to For of brand. expect the in continue expect

margins though year, gross We continue the level last to record have expect some from flat XX.X% components changed.

$XX broader for impact persist assumption now to duties. in incremental higher higher freight with is as logistics. rates the freight assumptions the we include year. continues balance market inbound we these an the in elevated shipping And COVID The Our expect to costs now addition seeing are forward million global of what largely to higher consistent in

GSP, Congress XXXX. We duties of expired called System higher expect the the a that calendar the long-standing renewed $XX of preference trade not at of balance million year as has year Preferences, the in for program the Generalized end or

we For February, GSP duty-free XXXX. YETI, renewal. original hard adoption were primarily its the historically that impacts impending coolers our anticipating from XXx were in this include has And February an this original in been sourced not did Notably, renewed outlook our in we Philippines. impact given in since

on the offsetting our new better-than-expected plan year, While hold growth line we include level. Fully now for year, to in freight. renew this upside now, performance last QX are updated outlook. February. growth. rate at offsetting to outlook the are perspective, several gross from Congress felt in point hopeful our greater-than-planned we year, GSP the full cost the expect full in fourth half act strong these higher of comparisons this our and expect to incremental line the and material the top the would prior exceptionally with the dollar followed as outlook. quarter, better positives exit to With last fixed versus into a inclusion margin improvements, incorporate impact pressures, this we given in outlook. the contraction and SG&A, we exceeding margins cost strong cost These year. during sales Should our third year year's quarter we be gross a the at with look by we of product expansion raw and margin GSP cadence From combination of year leverage planning fiscal record gross back renewed Again, to current second we that in this at additional will We fourth imprudent XX.X% GSP, while pressures our still year achieved see quarter

continue to higher tied year variable faster-growing We faster grow sales. and expect will margin than full directly most expenses to direct-to-consumer channel gross our total slightly

quarter last total will we as of expected our grow are modestly performance than improved We timing the the second factors during expect expenses with an of last full non-variable international basis quarter the key the as efforts each approximately cost XX.X%, about points initial rates to digital, year make growth by record on slightly the year subsequent XX start operating sales, adjusted even and slower the to and than Partially investments year. rate such yield growth reflecting first quarters. in be higher expect areas outlook development. during of pandemic, a containment par product outlook we followed margin easing These above of

to shares between $X.XX diluted adjusted per to Based earnings to on we We higher million, in the XXXX $X.XX XX% tax expect is the for of benefit expect fiscal approximately lower $XX.X first full compared fourth the to grow and quarter. flat in given approximately expected rate to to quarter. XX% in year-over-year to approximately quarter in XXXX. in operating adjusted The diluted $X.XX second now slight effective XX% be year third year-over-year plan the the fiscal outstanding share margin be and

capital As we cash in year, we and uses on working focused about think investments this remain inventory. of heavily

managing mid-teens the the efforts improved a what we and this, of global XXXX very our to forecast, in chain expect be of to balance shows impacts inventory for give environment. rates you fiscal the our fluid as spite With remains actively inventory inventory and year-over-year to growth compounded using supply position visibility tireless supply perspective, the continue we quarters our team, fight compared of And positive as quarter. monitoring the a to two-year on In growth starting including original chain our annual range year are COVID base. current an this

to data for all, the SAP, work your team to incredibly the expenditure investment execute continued key as range momentum, we enhancements $XX many proud of setting in progress of our both the YETI enhanced sustain am reflecting persevere helping as our and support environment. areas, to incredible new near-term growth well ongoing of includes now the This spending million the our support year, and and take but this over also turn capital I see the foundation this back capabilities on questions. Thank for website We to of the future the would With operator product On for that, like development including you. to I to business and vitality primarily to a innovation. side, start the $XX continue to brand. call to of technology million growth, YETI, in was year as and a analytics optimization to commitment All fantastic upgrades

[Operator Please comes with Lyon proceed with BTIG. Camilo first Instructions] question from the of Our line question. your

some strong your very color you question of start here end to remarks. the gave Congrats My Paul, And on inventory. on just is the at first a year.

speaking you international international? the continue is how business. the and strong from So your on how segment? for tell Is the sort see of and this expect flows And impact in context would about Can the PDC fluctuations demand question of both all to second a to composition that with the of X%, we impacts very the how results of rates or growth to components, you're of meet margin year showing might balance inventory strong about any that through think now choppiness wholesale? ability about the the down of chain there demand the unfold are very of of you balance supply about ebbing. continued that no talk would my the to Can the you expected And that us inventory signs X% about then year?

inventory, efforts the with happy and XXXX the throughout So supply exiting chain, we're first in really our we're on quarter.

while was X% numbers, the is off increase. a time we at just Last down to ended to sequential of year XX% this sequential QX. restate plus increase X% year-over-year, So

able plan. to plan delivering to we really our our relative the So top also line build ahead while of inventory over

we're two-year of mid-teens year. lap throughout give we as wanted So second positive we sit And we'll we said, though in basis, quarter, down and where happy will low year. of the really to negatives the to as rest year-over-year. last color mid-teens, the a today, on that's be why we're even we in we turn big CAGR Beginning the

was two-year For QX, a it on it though even down X% CAGR, X% was plus year-over-year.

the comfortable really in building in ending that is year start international, the QX similar, and markets, a In the business you we single into contribution mid-teens. leverage very like we to excited highest have margin growth that as so U.K., at continues certainly Europe Clearly, about the or on and margin. do the we international a business QX position. Australia the don't year-over-year, we're smaller profile. and down as from profile our about you grow, way as as operated in if yet business it similar a stack, will there Canada. that scale as the and gross probably up to margin Europe, margin Canada, get profile, rate be like we've the go in back in But we really we're and inventory into the excited in basis, rate strong then total, to the but the think we about Australia, On margin two-year So

cooler in market So than demand just how continue how you If and that on that you're you how maintain kind planning to out? to to I re-upping sell-in. that just recall to ask versus the early summer balancing inventory, all perpetuate supply fall, you was outpacing late at your planning the what of significantly demand to that play curious below see one follow-up supply on are exceeding could the I sell-through demand the inventory And how want should situation? really summer, year your demanding? I'm to last constrain the Thanks.

have we Matt. that our DXC positions Camilo, of health also say while wholesales fast-growing is really ability focused to meet a inventory the this would is understanding on demand, existing What we're business. and partners' I

a think approach, year has expansion partners throughout we focused meet type thing and which sure on on that been through is less you wholesale I business play that supported getting any rising well continue breadth out our from more the and the supply that historically to see focus less the our of focus, to making but would our strategy. demand driving have DXC we're we and marketing perspective our depth as

question Randy next of with Please comes line Konik question. from Jefferies. Our proceed with your the

Yes.

Thanks. incremental like or penetration only a just fulfillment thing looks to a XXX there? seeing this one as quarter. like a like time, to from to want doing think points recognizing good the over you on give of with the end It working to you're kind to you're the supply over So get markets? a perspective you us international. of is And job in of fulfillment we're nice better standpoint international in you there, I Are got on basis getting improve medium-term on doing do acceleration international. goal go What that some a ballpark what back penetration in

growth and And U.S. talk benefit seen e-commerce quarter in and that flow, to we've the we're and our as bucketed unlike about in lot growth seeing as it's the particularly And year is as in saw established those matured different you a is we as store Australia, we've we have of call in we've Canada, and if three have we Australia XXXX, we of established what in three on There we matched Yes, I now stages businesses. last matured supply markets. are of I as out And Randy, as in market. strong is have markets were Australia mentioned of the full their seeing that acceleration And our the since Europe understand we understand mix, said, as what seeing what we're incredibly you're have first we think the market Canada maturation. internationally, that that penetration demand built year. not demand. we kind near

really at year receptivity was our our In of distribution we're the in infrastructure building And by wholesale, the of call, we out slowed points also strong on last maturity expansion, of has the out has and been so consumer. which that I our think as been and growth COVID mentioned Europe, building that the earlier supply.

growth. continue like think of can footprint. business So expand the in those think the markets lot opportunity is how it for user U.S. market index size markets. big of international I our We to great to those markets positioned when they through end still we there's What the to a we like about become, We We how the forward market. how we're feel look sorting those at to and that of them U.S. are. many relative

bag so on is things, then backpack on and backpacks And side [indiscernible] Great. the of the and it amazing.

some it somewhat like for which And potentially category some constraining YETI to or on going in kind about potential of you So the the to brand the around opportunity category have are to is in what sounds everything, you're give that expanded product learnings And you're bag there the you're on something can like exclusive the this to yeti.com. distribution? perspective getting thinking for sales of learning still and how perspective like a extend of us terms distribution product Can give of that you? other what You maybe what this, brand about you wholesale categories view forward? right? a the you're tell basically us that it solidifies constraining some

of prior with approach a in, that I about the learnings. with on expansion the Yes. We to that from kind went there's bags. broad-based into we think it of receptivity went approach both to as YETI's give for to of number with calls the we broad-based category. talked different We expansion say the into seeing very and exciting for learnings with that you. a product bags then in a idea into. into as some And consumer went launch about international would appetite the starting movement reopened a purposeful We chance our also to to awareness front We into build from the and a is a you're and wanted the is the expansion travel. the we think the brand And real were the grow and and in-stocks on people we're also about category we're a that. there's lot of we talk and piece, chain still third as of to mature what our now, end really supply the talk we And think world resumed, and and of see engaging travel and our it domestically out-of-stocks, is of which

had and to very chain, marketing really demand. brand paced run approach ramp-up taken measured build our we've our of of our building the So rollout, a to front supply to but that that that and in up

bags. think mentioned receptivity. remarks And what excited prepared on about reviews received in category some that market confidence, the but both from so the we're a I We've has it point and a we the real commentary about the excited category, we've families. us how And to we're the it's other step lot as of into continue expand also opportunity we into thought but also product will give of approach

proceed Our comes Bank with line Please the Lynch. of your of from next question. Ohmes Merrill with Robbie question America

is about new in should is through one we is out. a are business? Can sounds cooler then the of new and there? Matt, hard for there soft lot response like kind you for think Matt, business called customers Or -- it coming momentum Or It great. of Paul. a was the the there colors momentum purchases? of talk to is and bigger you the business? kind hard seeing first, how it repeat one another cooler questions, customer there Two and But cooler into the And

I a be to equipment and coolers. The said relates is couple hard performers that bet on coolers our beginning those massive as a the place Yes, things growth the say Robbie, bags soft the hard of in by as soft being we would be to to strong at category they driven and continue it didn't driver. the of coolers going of We majority this growth year was year.

correct was continuing those is really well. to products read your So perform that, growth that very

purchase as of difference in we returning best existing continue we was mix. is year we we not year. why data analytics in our year about said QX We're consumers, think a large really points investment new And QX customers get we acquisition, of and think sites. around of see acquired of versus number work. new made in And And the a fundamental from our but what into customer QX balance on retention customers, data and as own to driving our and we're through that's and come past new analytics repeat the seeing in e-commerce starting data I time behavior advanced purchase. something only not the went we nice into is to versus focused a big where last into XXXX that's last XXXX starting we're we part a and the

gross Got you. quarter. amazing then, this Paul, margin That's really helpful. pretty was The And

us quarter? what gross -- a any us If what you be today you might color this and opportunity and than on about is and margin assume Is give target thinking higher for you of Is gave long-term exclude the information achieved are Can freight you how everything, long-term that margin given ever? the now? you on there pressures YETI the it what goes -- away. GSP we gross sort the

Yes.

the is there that, as the that We -- model I'll couple a we see thanks, a feeling the XX XX in So hit that in past. said in of reiterate Rob. or it's this we've that's ceiling. things business don't no or

look product this margin inbound free. GSP, a happen not. or And adding we it we channel to we the forward, to the we or product? gross is of to into the margin either as as renewed from expansion gross higher won't any in want continue going we're case, product think, and will sign offset be differentiate As The through, we've getting flow gross will by about, freight, in be how going talked expansion a I a business healthy about those to And improvements, value investments are and then cost believe headwinds in other reinvest weekly that those that let business the it. have margin. good we But we do conversations balance mix

is channel -- about in business gross do the cost any that we to it the the really talk like us how -- but natural have from reinvest gives the team ceiling. then the new mix, the way ability We long-term So levers has product there's outlook no and we margin, product. don't improvements, on

Baird. of Benedict line comes Peter with Our question. with from your Please proceed next question the

got et you've some if sure That's Northwest trending not of I point question. in guess, Can build that stats a relative some markets, guess, Australia, on expectations? Matt, to first brand maybe sense maybe I'm a brand you pockets cetera, awareness, Europe, that, growth, in in think international the how of I to this us give you seeing? mentioned these little awareness what your Northeast. and I And bit, of are you're related some of little my those at

high. and growth quarter in discovered we're the we're that's we're and Australia in of equal Yes. acceleration of awareness things. I'll full our I momentum which say, the brand where receptivity. with about first is It's excited start perspective awareness about about day, half the mentioned I And think I a continue excited year's still Australia our be say markets. to couple low, Peter, there would a would seeing great from And the be to velocity of sales. was last we while Canada, a the excited growth. low. international the the I still seeing brand early We're we awareness would scenario are every that particular, continues to is we year. We're and say brand

not make the In the tracking time. deeply. in we've momentum measure been is a you U.S. mature more as I that day discovery I start the we building early in as those little mentioned it some some to that markets. sense, stats those something driven And for as know, that's really that saw we're by would unlike think we start we'll of as in But U.S., runs, to

of increase of last really with brand healthy purchase tick awareness is years with a We five customers kind in which new customers. a driving of continue getting awareness. that to nice continues repeat only the not we've new and the consistent in but progress step-up, balance new customers existing aware balanced and is broadly we're made making about kind ups to be over year-over-year What's

we regions effort the We under out a five years the those broaden broaden called were I were media activities, as we it. and those across we pursuits So the we in regions markets, most that But operating. making speaking, find because in our we're known. targeting seeing the that regions results our and in most U.S., reach as spent all to broaden we're the we're ambassadors, which and as the that continue sure underdeveloped we ago purposeful our of growth broadly good of

I a a the supply talked sense of those second are What's to next just know what Okay, why doing business of about great. super got last That's are call maybe, the Any of -- that there on run international, the year. over And year. the for obviously, reason infrastructure -- from quarter. helpful. but standpoint, it, balance where then positioning, to you make markets, cetera. persist what's for that? stronger, can't tap you investments half order what's infrastructure on years or get maybe first this couple And optimally. over growth just an mean fulfill the year in business trying land on triple-digit I strong type growth in what and maybe But making brand that of just here? the some the et marketing you're that to stuff could

out I side in perspective, where infrastructure Similar broad type building the be a mean, to really still see don't of anything we're like say, footprint, year. they're of market. I would in call Peter, growth the really it's that headwind and fill-in today, our developed. more Canada Yes, we the I'd Australia and out sitting what European an here Canada, things. from that say, I rest our we for what and on would European like seeing we're DXC would Australia

logistics. the have We

markets whether expertise to continued language continue then expertise this and so analytics on We our insights but our have we're footprint, also and build-out, of sites as little e-commerce demand looking -- some we've mentioned and call, more logistics the keep in and to those and local and Europe those underdeveloped. And a in, doing used folks, our the be platform, the is is of determine is fully of we what markets. the we're language more going stoking to to we're that build the continuing fulfillment additional we're do for or sure sites DXC markets drive to continue relevant to in that We're resources, way. addressing now we make in local a fulfillment. consumer Europe what businesses. operational, our bringing brand add to increase e-commerce in targeted What incremental to those support direct

with Wendy next comes question. Our from of question Nicholson Please line Citi. with your the proceed

Have a like about it's backpack the but extent over to have mode, the we out you're checked comments it then on just just the Matt, persistently luggage, term your one, can thought you the the of sort just on back, questions that luggage get sort the couple about learning thought Number luggage teeny on gross structurally? inventory longer of follow-up the continues I had about you -- gross how so are about of the side, stock. launch. on totally but impact I to particularly SKUs, website it many of know of of on grow? seems and the margins? end And going management often, tiny, in to you of margin I luggage talk kind and

living et cetera? being that and cetera, are to sort you the in about elsewhere, up meet et demand the terms making of sure not going launch? risk potential just How consumers, you're alienating thinking able of of do So to you people

I'll the crossroads and Crossroads but start luggage, that not overall, gross our, to category overall. specific I'll bags with talk bag, bags margin in

to inside we as think about are overall, So accretive. gross Equipment, line, bags, slightly category in & of margins Coolers the

category. the stepping this look we -- just the past, about first right? gate to but Now the we've fly we the in past as as gross and I'll we important or us, brand. tell the premium-priced -- our positive margins, that's to think it's isn't talked CFO, We first think about gross driver. as as products, the margins, And So to thought back, new that's about you, at not

in the Coolers pricing about the far as But on to and that things question, we Equipment side work directly or equal then nature. of accretive and to bags think efficiency cost overall. we the margin pricing, about think & your market, we gross as is So

suppliers, as that Okay. product But Wendy, the of a of we've think on to I'd ramp like I said, stock. at And family right. the is is built team the out to new remotely, way, in times. stock has done our product, ideally XXX% era, kind thing for new in big I gone a this question conservative you're and all supply completely sure an us in the all quality, delivered COVID the it's and we I be done through it up of ramping on healthy supplier think we've that things the remotely. design, in supposed of that the was incredible chain factory. the a job and to something making new getting up a the ramped And

able continue put weren't we on sure top or marketing a engage took get as ourselves and turn start directly position could our to to starts world we around that as drive with into we drive -- we to mind. and awareness too approach team drive to directly to the consideration our whether ramp-up engage conservative that dial. focused and We're to we that vacations travel factories, a on of airplanes get resume continue in to in So reopen, actively back more to make fast, people, we'll they now to where ramp and restricted the how so can on how with happens close we're as education take that as right our bags and summer we're we continues to

brand about we're have near who term. lost worried passion being -- consumers understand worried when for ready not a the site. stock about we're engaging sale So a fully We're in the in sale the product and a on the

comes Our with of question. Sharon with Please William proceed Blair. next the question Zackfia your from line

then given questions, what secondarily, you to just I logistics guess, might the I expect right you you're And now across Or products seeing is did strength you the Two line? for the have mean, to this but now? somewhere pressure quantify guys be XX% Paul, XX% top thinking long-term I year now this, and channels algorithm you're growth the higher? are really globally, and missed sustainably

inbound less we didn't GSP. I for tell slightly So, the than you, quantify It's, what can freight. it's had we

that ballpark. think that in that as we an we give GSP, come passed, exact So didn't if it's gets will about the reason And number back.

you XX% and year. brand. line we XX% for the here this and sales, our I margin, we're momentum long-term a XX%, look freight remainder look XX%, to out plus the the the happy to is term. XXXX not are gross behind question last history and plus a certainly, this of inbound outlook think Similar market the really as plus and long update It's we year, on year year. XX% to is for XX% to back year if with our XX% this the the for at top ready great And certainly at

with comes question Please your from next Berenberg. question. Maroccia the proceed line Our with Alex of

on Have cracking And of recently anticipate all Amazon, at and There's news material with about benefits them any low-quality been from helped counterfeit products. a you it? this down coming you do initiative? lot

great a it's question. Alex,

past. in We the have talked

been active protection been domestically. very brand very We've active very globally. team. a We've have We active

announced in that the cracking think of things June down of sellers was I in One Amazon relates it to a partnership on party XXXX respect, of as with this counterfeits. we

and to addition, in unique then -- in websites, joined we a definitely a have and property And a lot we there. say on can a domestic in defend with brand, we intellectual put program but we to as that. scour We continue and it wouldn't sales and that's important our in numbers of it's we believe would I do and why them tease perspective. so good marketplaces had the our global it, And say the out we've it's focus success. the we partnership we both from that from benefit defend

real America manufactured? do follow-up Europe for manufacturing particular, a currently expand just of it? in that think about to then people places have these the a that questions where asking been quick luggage lot base And And is you helpful. Eastern on South can or supply That's the like you

things is the at locations the perspective. we constant to of of evaluation with look strategic from supply a our best One chain a manufacture that

of kind across almost our world the of now chain products. We points have a all global of supply from many

previously scale are and suppliers current very out other those also it supply for we with We're I products that continue and particular, think Southeast we sure very places quality, in relates a our sourcing delivery. active talented to Asia. expand we of active expansion. team. happy as talked to that to very very and a product the a that There's and our we're also are design -- on products, bags, supply China logistics as but in to portfolio base chain, moved about they markets believe can ready primarily and we for both That But of growth. best continues optimization make manufacture into have in scale and

proceed Our next question comes your Suisse. from the Please line of Kaumil with Gajrawala with Credit question.

lot questions. a been There's of

talk thinking lot about it then about in how or other? you momentum, growth a may maybe you'll and around Can manage put questions supply of of just bending quite bit the there's you're been supply. your obviously And how of arc if a one on that? You've be direction the reopening

at clarify, you might talking what be reopening, specifically we're looking saw so? just we or growth next are in looks year economic Just may versus say you for when like really from everywhere quarter your be to the about reopening shifting seeing we this what just the what

the were take Thanks. one were position we or for strong previous say home able outdoor and a product a to we we portfolios, brand things I'd pursuits. Yes, reopening, about evolve I the when as the they said think calls, solo and advantage of more strong were it's position on think at people perfect. our of for pandemic and

pickup reopens world brand. some of normalcy We the not our comes to the think whether on gatherings We're think of are is positioned and well brand product down those level a consumer. portfolio our or back, is sports the type product group weekends, we follow and put or As commutes sideline well or positioned.

cups with you as travel kind people's -- reopening So evolution as of our our our bags in and your or can coolers happens.

we last think that was to we'll we did I as market consumer one how it a position that that's So We'll of that's I think when it where we talk this and point. and the things, adjust happening how -- about the world reopens. continue We at and lot to and the year disrupted is what's highly do that

behind a perhaps could a margin you're that detail then on raw improvement Okay. is maybe in intelligent margin from more how cost, improvement, what of ways piece little the the Got it. product in gross it? Or was reduction the prices of structural that material tooling you And maybe provide gross more improvement?

Sure. to it I'm not. with is start going what

reducing growth XX% share our growth. give product, cost that not the with not. quarter taking would quality leveraging top those enjoy fixed So the mentioned, example, is out That's will this of as use that things it it What of It leverage operational couple that product, line for to of taking you durability is it's of items. the leveraging and out changing what in product efficiencies is is us in what I'll spec a improvement. it cost to is is level manufacturers our scrap it drive efficiency, an

product. it's go all it's taking Again, of it. is and quality what out So that not into different pieces the durability those

Okay, got it.

that it sounds structural, fair? not Is temporary. So

Yes.

of comes Please question. Kimberly from Stanley. question with next Our your the Morgan with proceed Greenberger line

QX saying double quarter, digit I just with to as again then third for have that's fourth last than is you of beginning to make want distorted what QX quarter higher were my it out you're be in Or to that seeing if lap. of those simply was to quarter, like you there And that Paul. question begin I you heard And talked that COVID and any expected wanted year, second -- revenue and is on shifts, growth might that of -- huge revenue. weeks two in each but example, ask quarter into revenue I then the Great, sure It Okay. you about still the growth about second of the revenue. Any three just easing you're first correctly, lapping quarters. in last in growth sounds quarter. acceleration revenue rate?

So if would if you my could make be understanding correct, just that's that that correct. sure

Sure. going question second Kimberly, start your I'm with to first.

would remaining So second the would was And digits. what three still half be said growth quarter quarters, the going second forward, be the highest of so rate. I double then

first So on quarters to comparing last the first I quarter each to then wasn't then and the last comparing the as wasn't your it as versus post XX question other. in timing. quarter. relative on a three, COVID the was first It And about three impact that to all just investors you impact first our look give of the year of pre-COVID really did at anything we and shifting weeks our last

So before were we shutdowns, rolling we were over XX%. plus

lapping I XX% We were this weeks what you wanted first XX all than driven certainly weeks, into last wasn't started three the the to the a plus higher was share when the quarter. those this by with going weeks, last driving three So of but we in shutdowns.

of Our final with John comes question. with Please morning Cowen. line your question Kernan from this proceed

your of the my year, the questions year and specific in year geography look most a I'm QX? to? upside category, really your just guidance standpoint upside the the forward from for have And so been activation increase that of quarter a terms anything from standpoint, there What's QX answered. expectations? is far the quarter, perspective. should a smallest remaining QX Excellent the any of revenue above by nine and for you're driving for months full came guidance we curious, Is upside product in in the marketing looking in that brand

Yes.

we've balance the three the strong continue balance our into year, that in Matt now to outlook, guide if but demand if the expect broad-based. at of quarter you XX%, broad-based the start. second hit first XX% your of quarter, you be demand let And we the the the And as of were So results in is year we to that the brand. in to that And to the link year at with -- out math, above the so that do for piece I'll for brand. from the we that our look we And really I'll I'll The -- see first strength look on seen full question QX XXXX, saw quarter, results question. XX%. XX% the first slightly quarters. it in it's of quarter to

thing So in there we the world, is pandemic a the digital the the that's that summer more highly -- last biggest the for once reopen prepared a going to in a a through which we're and spent evolution bit world year the hopefully way. through engaging biggest fall, digital consumers

and and it's of safe off-line when to start and when consumers One start it's some as forward our resume, there look getting is activities possible reengagement gatherings of to happen. as driving the to things customers year with this to start we out

side, And with back of engaging but their some can out world, the start of track successfully people so in to has team plan partners both which we've and we'll is continue minute the back getting we a marketing events, incredible a got we excited and activating operate, bring that domestically that's as and it. activation they on we're do kind have dual brand believe, this we pretty globally, to the digital events,

the Matt the to and floor comments. I'll for final you. our that question-and-answer Ladies Thank turn session. concludes Mr. Reintjes gentlemen, back

come you QX everyone, morning. the this as Look together call. back to time we our Thanks, for forward updating for

Thank conference. you. This today's concludes

this time. for Thank disconnect participation. may You at lines your your you