YETI (YETI) 9 May 242024 Q1 Earnings call transcript

Good day, and welcome to the YETI Holdings First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.

And now I would like to turn the conference over to Tom Shaw, the Vice President of Investor Relations. Please go ahead.

for XXXX to Results. thanks First YETI and Fiscal Quarter morning, joining discuss us Holdings' Good Leading Reintjes, and President call and the today CEO; Mike will McMullen, be Matt CFO.

questions. we'll call prepared open our remarks, for Following your the

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

For please as our of revise result made information, by required no XX-K. refer more statements factors to a except to detailed most We new law. the information, in or obligation Form forward-looking as risk update future any recently events filed today otherwise, undertake or

our to the on morning Reconciliations we this are and measures yeti.com. or posted of presentation operational non-GAAP will otherwise website these non-GAAP this of We non-GAAP Relations represent in financial the as underlying a our press their most in section of Unless business. the included discussed accurately call at true basis. comparable more measures on our release Investor measures be to our use results performance believe GAAP directly they measures stated,

call And the I'd now like to over Matt. to turn

as our categories. growth Coolers strong Drinkware channels and and had fronts, driving our Thanks, and we our We our across YETI in well quarter multiple first and & to products, as demand Equipment brand both wholesale by delivered of good evidenced results. for morning. positive XXXX execution Tom, a great double-digit our broadening DTC as start great and saw range global

e-commerce, was sell-through while sales, the by corporate supported ago across Amazon showed business relative Our period, to continued YETI and and growth performance retail. wholesale our DTC year sell-in

bottles campaign, positioned demand. and for Drinkware, our expanded we the new of with we and category. range In deliver within to awareness Coolers, strength In seasonal upcoming our the believe tumblers innovation continue are well

YETI By on geography, deliver domestic XX% International our the are growth total of exceeded portfolio growth a we even to growing strength full our XX%. year of the XX% sales, to expansion, global nearly track and Behind was on top-line outlook. high of reach the brand, product year-over-year as

combination upon the operations XXX driven and team product freight of outstanding basis by report inbound discipline, to our Given in our price margins. delivering strength, we're recovery, strong by historical a gross chain to point cost build pleased and profitability work supply improvements improvement

basis performance expanded adjusted our operating strength, and period. also gross our by Following the top-line margin margin XXX points for

completion delivered and In the with our allocation Butter priorities, the Ranch starting quarter, we Pat also acquisitions. of capital our on Mystery

businesses and on long-term track Our integration is of as cookware. in accelerate mid- our these opportunities bags and we

late-February, a accelerated announced we Finally, in plan share was $XXX repurchase fully month. which executed last million

From we a demand drivers for remain on optimistic year. full top-line our perspective, the

a price and performance We against result original sell-in are expect of as against compared ongoing performance with sales redemptions. consistent balanced conservative guidance, year's balance channel card and as higher purchasing at demand we gift headwinds last recall-related our points, anticipated

Looking and execution the at reflect our we outlook our our ASR. are bottom to our margin of line, raising strength

opportunities in As capital indicated, continue thoughtful we strategic evaluate will previously and quarters to allocation the ahead.

our Turning beyond. to strategy XXXX and in growth

portfolio, our build and global business. customers to reach brand extend to our remains engagement, leverage reach product omnichannel our priority and powerful drive Our diversification across

XXXX, early months ongoing Shifting strategy. of In QX to we the depth our our YETI's alongside highlighted brand of some and of activated have partnerships. the breadth larger reach. brand global evolution

for became Pro the presenting the of pipeline Oahu. the Surf partner World year the we In YETI of in the the with second event our first partnership League, season,

as natural our On included Mountain, events such activation continued the selection.

Racing is RedBull Finally, YETI partnership in our integrate find support proving Formula creative team. ways to the for to with and One racing,

looking incredibly proud a first We're established ownership with stadium our both elevate the new team's to for the in a professional women's built sports will ways visionary look sport to of specifically support of these In and Current, professional Kansas world's the a the the many profile also athletes. pro world innovative soccer We the partnership We status the disrupt we team. their Current the brands. the quo. to City efforts and club to debuted March, incredible connect forward

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expanded our new driving coffee, awareness, for offerings reach existing customers. Drinkware relevance and Next, global and we on in highlighting focused

may have to week, a this seen can as later French summer. beverage as to that new a the stand-alone you As we portfolio pitcher we double pitcher, this look press added YETI release the

while received Age of and innovative and passion, team Fast Year also brand speak X incredible goal, the creates sustainable what and accolades XXXX PR Company's during team. YETI realness affirmations, what energy, that companies testament talent emotional the a our These we This Agency is are and into quarter the strategies. of puts not is most passion for Ad to creativity that connection brand the our humanity the to brand. do. in and In-House the the

while has showing and It's This towards want into team true engaging in themselves to more all sustainably ways isn't and I communities in is, growing of built is for their belief globally. growing and This spirit a what on YETI people times to been against real consistently and at on backdrop wild. focused pouring brand the customers buzz. about up evolving thank market and staying the the community reconnection of to a YETI entire this that a movement moment. about

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are and YETI key evolution As product, year: focus our into themes we this and expansion broader the product to on brand YETI X brand-building there family, beverage of a shift under growth potential food in and cooler umbrella playbook. the the

activities. Across head and key our the conversion. beginning demand awareness drivers product great innovation, a leveraging warmer capitalize to and the the a in season: position in summer travel on we're range, We're few outdoor we into as weather of

we camp wave designed legacy the our our up innovation a We're dating next cooler to hard to in building tournaments. most excited or our XXXX, about hard and handle smallest in portable XXXX. XX-cooler, Roadie to of cooler through pull Recently, upon cooler tailgate back a wheel was site, to The Roadie debuted our move date. first weekend

we on that good plan hard type summer, for anchor at day a price a cart will well this or which the introduce as entry of side-by-side point at personal-sized cooler on out cooler, in will a YETI this work a the to Later coolers $XXX. job. golf Think hard

This our moments portfolio strategy and great as and response On is XX-plus of a support our to more range day. in of expansion across growth offerings we're of part premium we seeing the deep tumblers. their Drinkware our side, bottles

evolving category consumer what are solutions We opportunities. out this and as address we needs to building see and

and announced evolution are previously year's opportunity. the the a the complement beverage instance, pitcher wine chiller, For and sign french of and press last bucket and

items Additionally, after years customers, a of time limited giftable and Father's requests we barware our will launch for from in highly of Day. supply couple

group To Coolers cookware and the this to our first prospects Coolers Drinkware, round & Equipment Outside what see of offerings our family. cargo the under of and possible offerings, also we out introduce in we're the excited XXXX cast summer. of we YETI iron bags, as later plan by expanding

We deliver waterproof year's around bag addition to year, new range, innovation entire this earlier this. this boxes. There's following expansion flagship of cargo expect come with dustproof last starting dry to our across more

out-of-home, driving the includes on mind range to partnership brand moments those drive our incredible top product awareness during wholesalers in awareness deploying YETI. We're This in new and and front We of an products. across keep brand important be efforts continue print with to for of to of as launch digital, consumer. TV, focused a the we

broad efforts storytelling at people using expanded and a from we continue consumers driving marketing highlighted Additionally, of in innovation the direct these connects range deliver programs to on products, we're marketing, color integrated focused wild. that conversion. inspiration with times Through performance will and towards

opportunities global see brand and focused on them we powerful and impactful customers, tell our in engage more also stories, go-to-market. we're product ways strengthening reach As to

growth balanced channels contributor Our YETI. market and to the first to achieved the and of key diverse the speak quarter, are consistency to in a power strong and

a Turning traffic to We against of benefits saw the count, our some and UPT start performance. DTC recall our more lap last in customer selected the we challenging and as transitions. end-of-life year's of customer value

diverse to Amazon Our loyalty market. further remained strategy customer as supporting we the see to channel, strong that channels our marketplace consistently of

continuous for strong more coolers and our order delivered improvement demand. YETI. volume efforts, value sales cost-effective customer and of printing underscores and delivering the Corporate hard for efficient technology inbound addition The

District. of newest of in in New We outside retail opened locations Houston and the the Flatiron Woodlands City's YETI stores our York

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the thoughtfully outlined, partner with in Supply combined wholesale we are U.S., including partners reach, Canada, expanding and Europe. in new previously the Australia announced already global our Tractor As in

cultivate partnerships assortment. with new addition, align also that our product we diverse continue wholesale In increasingly to

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the Looking at overall international business.

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omnichannel addition solidifying to awareness our on near-term focus brand successful is approach. building and In our regional growing our structure,

brand. see to results as throughout from strong team, fun and Supporting this In to Europe. to momentum, includes our and as the our overall also transition to as YETI this U.K. operational the other we're city has the XPL the improved while up market driving as we streets the Europe, making brand will in and future activate show of month, support which U.K. business. markets in brand the investments growth, efficiency. key countryside This is the Germany speed see been It traction scale outstanding we well processes increasingly

In incredible quarter. had we another Australia,

even in the powerful travels our they BCF. have playbook Australia outdoor We team way show with partnership the continues all nuance independent like to market. balance up making Australia really Our to to contribute with that YETI growth leader, stronger to and retailers the the we a in as

deeper we a focus partnership sporting We as urban retailer begin markets. into also testing will customers with new on reaching a goods

see From growth like despite strong in the we across wholesale and product sell-through customization some have we we're moments. to new America. that much seen traction wholesale, supported we North capabilities Within different demand, that perspective, targeted seen our Canada, buying with the in was new portfolio by In market relationships a of offering caution and us same complement consumers to test have channels beginning allow channel several domestically. to will reach great

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at who handing Before we show what customers, thank up YETI our over forward. call every every friends drives Mike I and review day the market This outlook, us financials every for to launch want to our and and new partners outstanding enter. is in to

turn will the to Mike. Now call over I

results, a on everyone. excluded the start QX then are strategic an and provide on measures. in good certain from actions our non-GAAP impact performance few with of morning, of I'll Thanks, results. overview I'll Matt, across non-GAAP which GAAP our comments our our

details some give outlook before opening for will I our on your fiscal Finally, updated it questions. up XXXX

X gross GAAP of Vancouver out center. for quarter of margins; would impact results the transition of the with with X, I impact items all of you Our associated call the for X, costs accounting purchase XXXX first and this including include recent our acquisitions, our design on our the that costs associated quarter. closure

work consolidate Montana. Vancouver impact While was acquisition with team from we of X items that delivering, is location our in Bozeman, and this were to Mystery the non-GAAP pleased of excluded the provided these our results. The in other Ranch opportunity into an work

practice, adjusted focus our on the performance call this an order in the period. non-GAAP results on normal of during operational will our the on to basis discussed be Per better company

Now moving details quarter. the the on of to

quarter to $XXX increased XX% First sales million.

detailed, and These product channels initial categories, recall. geographies. the remedies redemptions Matt our of million Ranch impacted gift balanced customers by contributions to and $X card performance the Mystery include from related to across offered As was strong results

we generate they YETI to integrate approximately track recent top-line for We progress XXXX. acquisitions, of growth basis to are points with and in made have are XXX pleased the our on

million. increased By XX% category, Drinkware $XXX sales to

XX over we to basis. that continue including was the and of color growth customer performance United strong factors, of continued a number a portfolio and expand, States exceptional demand products Our on outside for a by driven customization global

our driven last functionalities gain space QX launched cup with coffee improved smaller great offer including great the a we offerings our and XX-ounce bucket And and materials few a that offer by holder lid fit as growth customers products stackable customers. specialty our had mug the we saving, that a as and of range drove options The remain sizes, are QX. of wide chiller. our the Here in continued specific added lineup barware by our excited bottles We such shaker. in straw X to tumblers same launched of new that examples our the We tabletop sizes, beverage growth cocktail wine of and our products compatibility. such that hand quarter performance, we traction, and

Both Equipment Coolers posted hard sales increased growth soft XX% $XXX period. coolers and for coolers million. & to the

products colors. to We now seasonal are in excited to have in the our coolers full mentioned. including product the we continue hard innovation in Matt add this that of available with recent And assortment to market, lineup

position are head pressure we in as do strong go to months. summer While this some see through in a higher we we to expect the on continue point peak items we believe year, we as to price coolers win into

the Dry benefited expansion Gear Case saw line and the Ranch, our plan The organic also by we the waterproof Mystery was for coolers, our from lineup, Beyond quarter. of of inclusion category on which YETI our line. from bags led strong Panga performance legacy SideKick

sales, representing of a XX% sales From growth C&E. direct-to-consumer both by perspective, to channel million, driven grew Drinkware XX% $XXX and in total

Additionally, we e-commerce, sales each our Amazon. across channels period, drove growth DSC during solid of and including the corporate

we While the still Retail. pleased a small with were growth YETI of contributor, also relatively

this plans more year, our breadth mentioned, experience opportunities store to assortment. as we modestly expand product full new Matt to of reach are the and our our provide look accelerating consumers As we for

and XX% both Wholesale million, C&E by driven sales to growth Drinkware. $XXX increased in

good product both in categories levels positive inventory channel Importantly, our and sell-through was position. for remain

of million, and The U.S., Australia. significant the remain by our outside outsized States XX% representing growth footprint to our sales, look the capabilities. United awareness, Europe $XX total leverage of opportunity as set brand and Outside in drive driven XX% to we grew sales wholesale expand DXC full

given growth point this XX costs. coolers offset the basis XX% to inbound increased other our we from period certain XX and higher XXX product from continued gains $XXX basis in freight lower drivers basis from during on of compared all year. strategic These partially lower custom price that costs profit sales hard of were include and quarter from XX.X% XXX XXX same Gross of points or to basis million points points XX% Positive customization the basis points last points impacts. XX decreases the basis by from business, implemented increase

SG&A expenses sales, by variable of as costs. a for $XXX the sales. non-variable, marketing at and increased basis offset XX lower basis XX by Non-variable offset XX.X% higher expenses sales. decreasing expenses quarter million percent increased XX% employee expenses were points remained to of as Within flat costs a percent warehousing and points of

income Operating $XX prior the share that we the points year in an to sales, to to over per increase increased Net year $XX the income $X.XX or XX.X% XX% of of diluted basis or $X.XX increased XXX million million XX% period. reported X.X% period. prior compared in

We the decline working ago million million on was our to compared basis and agreement, cash Turning seasonality of the $XXX accelerated by the Ranch cash Butter sheet. quarter in acquisitions in of repurchase Pat normal the our capital. The and cash $XXX in to balance our period. Mystery year share driven a sequential with and ended

to $XXX Inventory increased million. X% year-over-year

We than sales, new but quarters grow year, may be where sales range at it faster expect grows inventory of as the year-end in build product generally rate there we this inventory of to launches. a ahead

first financing was at the and year's compared deferred quarter. unamortized million $XX leases, million $XX excluding finance of end debt, Total last fees to

payment we of term quarter, our $X made loan. principal the a During on million

our outlook. XXXX fiscal turning Now to

basis XXX from full and to X of to adjusted year fiscal points XXXX's between approximately compared of X% sales, acquisitions. to X% expect continue our inclusive increase We net sales contribution

the a indicated, stronger quarter. first we growth expected we rate in As previously

including upcoming below quarters, against expect start dynamics we the in There plan largest in relatively Looking continue we to the of the QX. The the second this growth redemptions second compare gift rate year, quarter, half our gift card QX year. of card worth a across with to compare slightly ahead, when prior-year of $XX.X this balanced in from prior-year to will redemptions we million saw redemptions, number are will growth be which impact in consider quarter.

cooler given expectations category, our growth expect lineup By DXC. both geographies. are International We Equipment Mystery across return soft and Drinkware, and mid-single-digit channel, between to compared channels, categories expected balanced sales reiterating in we our for the between full and outpace wholesale is & By we Coolers the products. of Domestic range. XX% growth the XX% of And expect and Ranch of incremental to growth growth

As a conservative prudently final the the quarter, last comment plan to we sales, on approach continue a we to with take of remainder how consistent year.

Supported strong the in XX.X% approximately increasing last approximately benefits slight the down our performance Moving we and across to XXXX to within of to largest This conflict. due inbound is XX% from this do continue Sea increase costs P&L. quarter, by versus offsetting Red compared original number year, margin year. drivers to gross our target freight expansion recovery single line are we our target of up a factor. the our XX.X%, due our remains driver but rate pressure of the The margin gross year-over-year one gross of margin ongoing to see some first

to we perspective, quarters. expect significant QX expansion From to in a increases we have ease past seen the X phasing the over margin versus start

gross margins to the and product see over as drivers half benefit have supply the our more lower the the largely to expect will mix, second expand opportunities Thus, through such costs. the to much chain year, cost gross margins sales line into prior second continue still freight we comp we of in in our term, half But efficiencies. year. other move be the we As long savings of inbound with

XX.X% high of With are approximately a growth outlook, outlook. On the in of our expect income the our XX% end roughly and expect increase XXXX. XX.X%, margin sales to prior be our margin growth. XX% quarterly gross also we operating line in income of fiscal operating and between from operating outlook We up basis, we compared now in to with raising adjusted

is upside will drive business. quarter-to-quarter inorganic end investment to high the DXC basis. of These global we Therefore, As to a on SG&A while at continue may discussed timing our we portion to the investments and expansion expected our our use our some variability grow incrementally gross for in full margin previously, invest SG&A opportunities. our range, support sales include in of growth areas have a efforts, year of our rate business,

year the More and importantly, our over our and line top on bottom delivering line focus top driving term. on the is long outlook growth for

Below above line, of the we slightly XXXX. expect XX.X% year, to rate continue the tax the for XX.X% effective approximately rate in an operating

earnings count share $X.XX As diluted range, QX. Due of to share XX% we accelerated we to an shares operating during the into of executed $X.XX compared as That $X.XX now we a lower share expect approximately between to raising agreement this XX, diluted to our and XX.X million full disclosed in and million. we fully end repurchase of high X-K entered income per filing, to contract year outstanding adjusted in and fiscal $XXX expect April XX% thus, XXXX. increase

As to capital million of this million $XX cash for million and continue we cash, of between free expenditures year. $XXX flow and approximately $XXX expect

forward M&A share will between deploy we to opportunistic We buybacks. and remain look further going as cash

remaining our authorization. on reminder, buyback a million $XXX we recent share most have As

our were continue as allocation opportunistic of go support improve shareholders. At ambitions the relative drive delivered and that profitability, our some actions market. our top-line of balanced be and we value full of capital long-term made our uncertainties on quarter size taking will making reflected overall we are with business, delivered But acquisitions strategy. our in execution. on summary, mindful key In the updated pleased we We the growth outlook. Thus, pieces growth investments time, to continues also first to caution some year quarter the progress in recent we our forward, the same of our first ongoing integration and remain and to across the

take call your operator to I questions. back would to like the over to the turn Now

will Raymond Joe James. a At from question we take Instructions] time, Altobello [Operator from this

[ Martin on for Joe. ] is This

saturation update on demand we an driving affordability, of Just just be sort all the wondering competition, can some And any if particularly might on hard coolers? of or that combination it's of whether overall trends, above? explanation get them,

thank Martin, the you Yes. for question.

were of it to all, return first obviously in the So soft products there was related coolers, element of think, coolers, in sell-in an time, in hard In growth But the transition that was to our I during the pleased lineup, was were compare QX, wholesale. in also EOL having QX against we soft hard promo, we that both recall same called and back a to comping coolers. we at but an issue in out.

assortment think mentioned But a we key new look there's a remarks, like We've we of market But forward, entire win period, sell-in seasonality aspect coolers in is to seasonally in in sell-through smallest higher on consider. coolers. a saw prepared a back as enter C&E I in and our we our our that as got is soft QX we got both the the point we've quarter, innovation in coolers in good basis. think we position But in coolers. and coming we're growth to and the really hard

We great go But for the market, some that to price still items we're the point higher the a to market position that there's in do really we believe is exist. win in it. in believe demand sensitivity

position the years. a and standpoint, a We in the believe we've had we've got best I all categories -- along, good we've we're for to competitors win. products think said in all market From got competitive like in we've

any about that be Great. actions combat we will And in certain of And demand? and additional just have should lower just our to any points, price as the products targeted this thought as kind high-end sort for of Roadie at items, on on anticipate innovation, Tundra cuts price pricing softness last well future help affordability?

Yes.

believe hard price -- called being question, price lower think full say about in wouldn't the the us introduced, so what cases -- point wheeled cooler the new we done for second of anything use just we the Matt there. portfolio that's out, the market. to -- new category. number entry point meets that response a as of just we This in X then point I lowest products a to completing products, and a talked happening I out cooler our on touch is is a

done this I being So wouldn't market. in characterize in to the that's response as anything happening

the was last I to reductions. goes the innovation price this new pricing and value consumer's was is what I to and you in mind. coming sure portfolio quarter, we QX did the making that that mean really same -- think sense the sense stack makes that it up response about was our And thing in talked go we price in the made the for as

with So with in results. it portfolio, terms line we we we largely it of and expected. QX, the basis was were of saw what what pleased entire that elasticity wasn't was It a number unit in select SKUs. happened in We the expected, but the on a

quarter. on great a Congratulations Great.

next question from comes Jefferies. from Konik Our Randy

let's ask could more the I assortment. changes innovation. being cetera, it of about and been that think around me, let's say, wanted be to the When say, sizable impact side. from innovation a Matt, in on products, it to the about, cocktail I Drinkware derived form last incremental french et factor question the growth years, a the ways recently, to, there's ceramic from, relates I've couple appears color shaker, I to wrong, press, as coffee a or additional But thought say, let's lot

buy and just a perspective products? form existing changes, there. opportunity versus Because to more maybe in that relates changes YETI from be think just factor you form more incremental new your and it changes give would interesting that it for around of fact, perspective there kind your factor is, kind color? if, provides lot there to get on innovation more is growth want the into I what as coming and customers I -- Can of of lot us to a

for question. thanks Randy, the

I think things. combination it's of a

groups. You're product we within expand have we've into correct. as opportunity domestically scale, as big And continued our brand, new to the seen on and portfolio to draw X audiences we to globally our continue

We know We coolers, same in within our expanded. addition focus hard powerful and within we've soft bags, we coolers, get the the kind the following with drive on a you there. of on productivity of an think has expansion And SKU of expansion way to driven our really launch. the M&A our C&E, Drinkware accelerant from story. innovation leverage of as each we cargo our business, thoughtful

think day. their needs more that in And in and us so time consumer do we gives more the to or address opportunity it points more points

you're going expand that doing factor as to grow and that's And way product to really portfolio. of we think So business. us change, form diversify we I continue that impactful to rhythm think the the a a see

does an but in important just Color customer acquisition, repeat role also purchase. play not

As more see is range. want across They that's the people a YETI and not ownership, Drinkware people actually we out want their that's portfolio, thing, to their just color. add build into that what

business, What we in more really consumer-relevant We factor, work to and out form find don't and not We U.S. we're balance the as to a but items more big big relevant smaller and for things. and in as to items the worked put it's there that's a to it grow there we out seeing world. scale work relates continue formula only formula want consumer chase to opportunity those smaller in do is around to the bespoke. And that's continue a color. want us. And

MYSTERY long-term set, your think then us Yes. cookware. And RANCH around around ambition to your and the vision last question how about Very give acquisition related also and and that, then helpful. then you just product

very thoughts the us long there give would be again your term, on helpful. Just that

global highly X said we and to our cultivate product we a nature, an YETI do way YETI's way and use our Randy. those we the repeat commercial Thanks, base. bags very think those are tell further we large, opportunity is think really way to We brand it's marketing, opportunity further think stories, this very the attractive the fragmented both leverage X there cases. go-to-market cookware. consumer of both ownership purchase We before, things, in categories, we've in of drive

the the end of So cast-iron we at the in and cookware, you're YETI, our on instances, is we I talent taking and of about and talent combine had this kind some in that that bags call, travel. this as we opportunity to and first capabilities bags, think as that out and entry have and into talked going really day those think about of and the acquisition later came Mystery with and top some our In the both see building year. bringing of look we every the and ingredients the with the in along portfolios together real I materials active we'll that at Ranch the what designs

categories both TAM YETI we're brand things, those of on team And of what And And that both with think mean the can the our about excited focus underneath time, well is the those put talk what so YETI underneath really for around really in place all fit umbrella. that we is the we we the that. brand.

we Anna now have And question from from a Glaessgen Riley. B.

new you about brand? customers that talk purchase last brought repeat year, the the how has engaging seeing color be that Any Are customers are fold. would noted these Can of the introductions you of tumbler think great. behavior? I on you into with new lot a

couple of little Randy. I a and prior say, things from is Matt. A would question Anna, to bit this the

we base. the and useful As keep consumer to to engage, the them in ways also portfolio what to call would we've diversify continued our thoughtful I expanding for ways product consumer

the our acquired returning The where to up. give we And as of go from customers customers can our them. continues in useful them more perspective, said value and like that value dynamic that's we we to a prepared newly product remarks,

offer, coming advancing and efforts. the you expansion, And we're the purchasing people we the put repeat diving product that's when of our at product. how portfolio, right think in time what the and how into part look our favorite it's people also our at of some of part analytics is of seeing marketing deeper marketing right their consumer. efforts, product I It's the of part back our front right opportunity we're

innovation YETI. that kind in we've But that X factor, YETI. the with bringing had years in of keep that's long-standing we keep really excitement and to think then keep customers bringing to last that engagement acquired with to we like the customers we've the emotional X And over complement opportunity form color the

talk investment? are little and reinvesting the a the about that key what's a through you Great. You could with of in noted Can margin kind bit not you're that And expansion. priorities gross brand flowing expand full more bit? you the

Yes.

a outside couple say States. what it's grow it's I'd #X, we're to YETI areas. of United around really So doing the

results including our business. seeing you're of that, international over and XX%, we -- of the So grew this quarter, where it's XX% and now

the that building et chain need, the awareness, #X. So International, brand brand, supply technology the we building the tools it's infrastructure building cetera, teams I we out need, we it's within think growing need,

talked out be look to opportunities there's to steps and support there. build the last to build year first do were we #X, need able that, a as terms and team we opportunities, obviously kind to of making our inorganic about that that in out we of inorganic a internally

I an new third, on focused expand element awareness that even brand communities, really think we areas driving and areas, to look product new then in as categories. of in And portfolio domestically, those into new there's the new are those

continue just So that hopefully you'll some as to forward. invest go in those areas us the results the are see we see of and

question next Benedict from our from Baird. And Peter comes

kind of on earlier First, follow-up of one a questions. the

That's good XXXX Just your you've of going initial for curious a the Ranch? an than XXXX innovation, first is that is there. Matt, I'm acceleration to that? just curious eye it innovation. to think mentioned some too in you timing accelerant around Or longer you being to around some your bags Or see mean, Is what could leveraging innovation? with it my Ranch. gotten take Mystery bags soon time question. as I an Mystery to

with the bring Ranch, I before to with say, we how that. together even would frankly businesses. of on we of the sort closed we work almost ingredients Peter, best both Mystery thanks teams for started

and And that well they're so down path. active

go we is the they're the the on the where have group with of move it's think combined from of benefit. not that's years we into And really will results YETI, this. who and I quickly talent people, work at as great This bring towards. I seeing coming XXXX, that have together, the can to out we're we have think those result of of talent, partnering with the a teams X racing products what something we'd some additional out look that

to together. products and excited kind of out going we're put first get So our

the international of business. or Asia I then And management the to the for see the Great. region. kind addition to want Nice over pivot to

you Just internationally, remind build us kind of structure support and how how you're org the plan growth? out that to the now viewing

there business that improve to as And international angle? should to there to else the U.S. be margin from continues penetration? we with its DTC about mix or the about business Is relative then any thinking is think that any to difference wholesale anything

then Thanks. perspective, in and I'll take the can the a step front end margin. of from structural Mike that on

structure, to As about go-to-market opportunity of commercial of organizations things structure our our we've one each on the focused we regions. the think internationally, the shifted have major

the Pacific. So Asia the Americas, East Europe then Middle and and

And their the their needs. stages reason all growth and being their different X development of and are and their maturation

advantage advantage opportunity -- taking so in and And focused in that burgeoning a to we in advantage is of Middle and team the have of we taking opportunity opportunity have the the East. the Europe of on taking the those have opportunities, Americas

in in North incredible we then the the called business Asia. we Australia, call, Asia have in strength but on an the and as building And off Greater out of opportunity

where of over underneath that's region that to what we're think really the stoking get kind surface. start I think to leader Naoji excited we so And in opportunity a is

Mike. Peter, it's

things And on your a couple of question. so

-- international, said said cases, but differs sales DXC corporate is several that it a in outside that we region, but model have don't we is our have level, kind what that given mix I First, sales we would by underpenetrated. at and haven't of specifics, it really say U.S. we've the full

We haven't had customization at scale.

piece just not drive are But that we increase. would DXC mix mix model. DXC full of continue wholesales position to certainly forward, of the a believe that slightly that maybe that because the the in going you'll internationally so having imply and a And a we're to bigger internationally see mix,

From margins part, for the a the they're by said for versus margin once gross differences they're channel perspective, same normalize you There's relatively the pretty internationally, the some that region. in But as similar. the -- U.S., by U.S. pretty most what we are --

margin line. is the the operating difference see on you Where

the Australia, we So regions some -- been YETI see that the investing. we're newer of regions in that market really margins we've to still still accretive are more like longer, emerging are Canada where operating and and Europe, strong for

up we in got so margins room operating some still And -- those to countries. you drive sort of

few be offset where going be out through we've a really that that going regions building going about first to as Europe Europe we're where But been region. new that we'll enter the grow, years like by to continues just we see may benefit. in dynamic are and similar That the Asia, through investing

Got it.

as So the but just than nothing new structural, below investments we there's that internationally, in margins other keeps it scale markets. growing

perfect. -- So

question from a Cowen. have John We TD Kernan from

of some business a the [ accelerated Just marketplace. into drivers new quarters entrants questions some couple of talk over the ] this XX% XX% There's quarter. Drinkware that. here. to been to X The last of Maybe the close growth

You've obviously expansion. some category had

versus Coolers & think Just how for year? we Drinkware should about curious, of Equipment the end the

and market the competitive would say, a of we've can and take Mike our that. said help kind I end as for the products. earlier Thanks, John. out the then back take I'll piece lived comment, dynamic Yes. in always an Mike of in

consistently not it's done thoughtful has is also about innovation, relevant out put YETI only form front the why relevant, tell in our what innovation, be consumer of factor think I color. consumers products drive and but

returning product the think responding is we're both I seeing that and new the offering. customers to success YETI

and And with of about engage part is that part a products to that diversification, giving the a think when think key SKUs throughout key portfolio it's YETI the you I out I XX-plus Drinkware, more the consumers reasons is success product that think reason our our and of I the strategy, call we've day, think we had. in

that the talked John innovation, year. based think do year, States just deliver we -- a only United to year forward outpace And Matt Drinkware to said that kind we QX. grow Yes. I'd outside then on have. what expect we is, off we and C&E we we but the have about to And we for to good that we thing start a that add, expect expect look rate growth of growth, And there's we're Drinkware -- opportunity the saw this the similar to last as

it. the on and and side. partners, just X on DICK's wholesale Amazon being on the follow-up obviously, Got Maybe a DICK's then DTC side Amazon,

channels the gross for when point, takes. you of sales at up dollars I think the it the account X wholesale a almost this quarter company

can Talk channel, what curious about, particularly space learning with the on outpace also wholesale them? there, do to much I'm Amazon you're continues guess, and more just how sales Amazon, you I there and average. then the company growth at DICK's

the So in out to let about expand me the -- maybe for of question I'll overall take Mike And wholesale broadly. YETI. dynamics talk then DICK's DTC the will kind

As feel intersecting. about we you we've we have, and before, wholesale wholesale, reach great consumers about about the the we how our and we're have footprint this said we think great feel with

performance invest been As we in because the in which we've we a our doors thoughtful to how rapidly that's expand how know, productivity YETI. at of partners, invest in in and and our we at you we the stores very operate, many and been the and continue hallmark the productivity for

that same. before our -- is the commented remained shelf We've space

our launch find on new wholesale merchandise and the space our we the shelf partners ways innovate, to products to continue products. for as as find mix Our us, we

change much biggest in recent how is to within space our the stores of the total we've committed So seen categories. is

to attention as the we consumer in and product we interest, offering particularly of the you've only which that's dynamic And from seen have I to the around YETI, continue results the around a particularly hydration, there. think benefit strong think that Drinkware category, the

coming. our have We great be have the from about and a we to YETI's I'd the very footprint across have. our we very support say, they we continue So the of we to we U.S., about important receptivity look things feel partners, as the innovation performance. landscape we in our wholesale feel that And good piece the wholesale really good feel about

XX-K, a strong It our with an driver, but we our disclosures the was we imply not perspective. would a year. a it had obviously, SG&A the mean, as last growth standpoint. from through also out I from in John. called Amazon, year On it went growth Amazon year only really We

strong good that that's we subchannels, is said Amazon this our quarter year of saw last we DXC And having included. on top growth What a across really year. all of

on a can channel Amazon a I year. subchannels given than us. with other on us. important for think, It perspective, to give from really other So But our a say outlook or Amazon color it's continue important for it's think DXC be, really didn't or balanced guidance we color we going channel be to haven't specific specific to this

Now let's Sandler. from Piper take from Peter a question Keith

questions. of maybe Sticking is could internationally. acceleration hoping here. you I was coming gotten highlight with just couple quarters, seen on But results the last acceleration from? Nice a I've the where in you've some X of that

acceleration, with also Mike the International? for XX% guide full why the then be And still would to And on year XX% finally, International.

be I that think there you've thought penetration talked as about Is forward? go any term. sales we XX% higher long that, might target a

bit, in take Thanks, bit a that of a Michael weigh then and I'll too. Peter.

out look we perform kind When on where well. the to from, called coming extremely Australia at continues we acceleration call, is of that

We getting consumers have there. wholesale front footprint is down in a Australia. throughout incredible They the of an great have brand team that out

building capabilities. e-commerce nice corporate strong They're out personalization a the have called in and really We opportunity growing or a customization sales We the business. business. identified

fit in that's And great but It's earlier New for a New us. market for perfect a we're little YETI. a a then Zealand, market Zealand is

be on to of back to able that is that's lot a success So going I place momentum the top that, XXXX. think things of at a market we've the build and business where got in to

think business is in mode. the I kind So of strength-on-strength that build

broadly In the grow. product brand called Germany, U.K. seeing out been awareness in seeing we're Europe, We're and Europe, placement. we the

marketing, our to dividends. running so classic our Our YETI ambassadors, the event pay activations, really playbook partnerships, starting our is

-- late-XXXX, the that And we before before business launched right in right pandemic.

little it the start So bit had that disruption during of slower with wholesale a a period.

are brand turf on into additional get brand of partners e-commerce wholesale sales the to We've where kind up mode a opportunities to thoughtful getting right a grow. are strong ways really corporate in of the got that and really interesting -- we're now business hands. We're We're driving think of a right I that really kind to brand, starting business. exciting doors. product that's consumer's and starting some first-hand shake

those really feel good growth we platforms. So about

diversify In the sales, Canada, to great wholesale channels continues market, as corporate international has market, their grow to our to longest-standing drive customization, partnerships. continues to the continues

accelerant I mode we're to So question some putting think putting is previous overall, it. where kind behind something the of the we're into energy that and at dollars smart

opportunity about that of of as sales, of far when can I talking brands put came. were put have the be the X where illustrative that international never where -- proving far YETI. grown out haven't there you cap contribution we we tapped, target. as look U.S.-based a a a as to we that first But and XX% examples was can when we're the think is internationally, and go, we target yet as the we necessarily we haven't at as It think international were that's opportunity it kind what on then

the Peter, quarter, adjust only X it's just our this is the The lot go. terms I in we why to down thing it's Mike. smallest I'd year to comes it think quarter. a left add guidance, of is didn't of Still -- and have

and XX% to If out of kind growth of we've the XX% still you year for about back results, the guide that talked you're full in range QX year. that the take

focused sort opportunity like only but guidance of we're going to company we X% and of not International to big for we for going piece the our But just on a overall, But that. hold We're delivering obviously, year for for year. as this feel long a lot here term. we there's is X% be the the to think here, there's of now, think us, momentum

And now from a question Roach Goldman Brooke from have we Sachs.

like Where long-term do as your prior might increasingly rates that brand and the you you diversify achieved into path margin you to business think in look a sustainable the categories relative new geographies XXXX? for

the the your could question? of front end question, line, on at but repeat I you least so apologize, our out, I Brooke, think cut

now? Yes. Sure. me you hear Can

Yes.

the into you peak? XXXX us diversify relative might to profit prior the categories as new and Great. just like understand margin hoping long-term the sustainable you geographies I path was you could think for where help brand operating your business look

you the Mike. Thank question. it's for Brooke,

the So lot -- that peak frame. about, we've of as that time we saw freight inbound we in believe XXXX as recaptured XXXX we've we a cost that the talked and

operating now a over that, time. point margin we to captured we build kind at that back start believe can are of We we've

in X And drive begin you're just efficiencies, to quarter-to-quarter would gross going SG&A. start over variability. to deliver. we of see through we will continue product to X, get leverage I absolutely There's be be here believe sort and that up on chain mix, cost can believe our But what absolutely sales that ways. we we will -- you our supply where think see that to goal -- going time, X is we may is long over Obviously, efficiencies. to quarters may term, the not not there margins that that

a got of piece they've international piece infrastructure an where see. the a from we because opportunity about they good the bit is talked earlier. investing We of accretive the now to -- operating where lot to absolutely at a just company. They're regions our standpoint of are, our the X need. of margin are we're a that point doing Europe

start That of they margin. help to up took And but new to recently member we time, team over our into going their region. get a business, may offset as we we'll that new entrance a -- obviously, scale we drive step with our operating big is So benefit lead as launch be that regions. just as

are are been to Coolers launched product and in the the Drinkware, them, done we've X in we just think within where all They've But categories. product broadened margins see beyond have those kind core even new we've expanded From years, as products, we've with last line I we'll our X, over of standpoint, go. what portfolio a that new at as we those done past. relatively as

portfolio, So product have margins -- we the the don't we a go down. as of we have history expand

we our can continue here, through as upside our SG&A. well leverage margins both we as believe expand on to So gross from operating margin

to turn closing to And conclude would back question-and-answer I will like the Matt conference remarks. now any session. for Reintjes over our this And

you, forward operator, We joining call for during and all the with QX this you thanks look Thank our to call. speaking morning.

very for today's conference. our Thank concludes you much this attending And presentation.

disconnect, may have a You now great and day.