YETI (YETI) 8 Aug 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the YETI Holdings 2Q '24 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, August 8, 2024. I would now like to turn the conference over to Mr. Tom Shaw.

[Audio Gap] discuss YETI Holdings Second Quarter Fiscal 2024 Results. will CFO. Reintjes, today and and call McMullan, Mike the be President Matt CEO; Leading

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

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

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

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

Thanks, of our strength great of good products go-to-market. YETI our and first Tom, and XXXX, wrapped a brand, morning. half showcasing the our global

return Day our the quarter number for of a products. and the summer, key perfect includes have Mother's we second the including Day, in and As Father's past, highlighted creating brand moments, intersection of a

year expansion These sell-through, our will our particular, our to wholesale second and into be and coolers, our creating across be we seen our portfolio, half and believe efforts in global impactful, drive focus Complementing the in in continue innovation on to going engagement portfolio. performance. proved beyond. social we our sentiment Drinkware are Our of the coolers, momentum what

delivered top & Emphasizing and the X% and International. led top quarter, Coolers expectations this on sales strength line expansion showing last of improvement [indiscernible] gross the significant drove above continued performance brand, by margin Equipment and In excellent we we of year. and growth, the

team the I neutralizing of environment. that the result seeing risks for and these managing thank are gross chain in would pace momentum high We efforts like for dynamic us the ongoing year. end margins anticipate supply puts deliver to we to the our full on record and the

line line. the while and investments top to to our margin upside also growth Our gross continued and bottom execution support delivering long-term strategic

ample to to As categories, reason we half channels product second move and across be the geographies. encouraged the have we year, of

the present While macroeconomic that we being mindful of expect and year. the remain geopolitical complexities through to

focus can of remains face being controlling to uncertainty. respond nimble in on and we effectively what the prepared and Our

means key of we For This products. to logistics product investment across Asia addition team roles Addition and in capabilities footprint to support the the delivering of also our our so YETI, that efficiently offering. our begins global and our and It engagement commitment manage regions approach and expanding investments build-out includes to uncompromising our Europe. scale globally can to customer always to with a our business. leadership

the strategic global continue diversification we drive our Additionally, to supply. of

Today, products to primarily Drinkware tied China, of related total approximately our from portfolio. to goods XX% of sourced cost our is

also soft our supply began in we our have including our optimize that Drinkware to we As with beginning At chain automation and with goods. our we indicated previously discussed, partners. process journey base improvements we supply transformation XXXX, started efforts major time,

began our out XXXX, model production As for outside mentioned proved we in and successfully Drinkware location first of China. our early

location online for XXXX, performance a expect non-China We to are initiative pleased and with second year-end the quality this of Drinkware. bring and by

be we expect that will located global year, China. Drinkware approximately this of XX% As of production our capacity by a result, end outside the of

opportunities believe other and base. this to we reach forward our further, can diversification greater we supply initiatives, program global of As extend we scale, providing and look

the allocate to specific to roughly Additionally, reside China Drinkware XXXX, production of flexibility markets our half end to of support have plan capacity of we capacity growth. By for to our we will that expect the and outside cost end available global optimization.

a Going this anticipate of for continue diversification opportunity forward, and business. the the even meet to YETI. to This further we scale to needs will been has priority be significant

dynamics. a growing is here we while when clear, as to us business, to making of decisions of address the these scenarios to right and focus work we Our global in initiatives range flexibility started landscape. mindful expressed geopolitical the our support global give on we long-term cost maximum tariff To future XXXX, will designed be being

extending to our access is our Moving our these reach consumers. efforts Many rooted a communities brand in to our focus and we the broadening constant global are for support. strategic of priorities,

who have to audiences. true but this range We methodically varied, evolved are while we often connected staying focus across of a

pursuits heritage these of the equestrian Western foundation very where A the deep past the have in built For years. natural instance, few a community, YETI lifestyle. has is thoughtfully we over global built extension

start is establish natural case, identify being was ambassadors. competition have used product how product as In contributes a and with with to address relevance. global built We then established relationships our and and organizations which of partnerships to retention. equestrian storage, our [indiscernible] such this sustainable Many XX and communities when is these thermal hydration, U.S. This use, we to organization we key we aligning through a relevance. how supporting

of a social connected a our recent similar broader This organically We've including highlighted existing products and our our approach These driving approaches high home [indiscernible] professionals PGA to across global hands has abroad. community with earning both relevance press way XX the golf, interest taken and their a stage. mentions golf. customers, organic drive making touring tours, range into and products across and the network new by CADE led the on in building of to and partnership LPGA using at with

continue ambassadors with skiing, look culinary. brand and network our of In and to have with climbing ambassador to focus will extends across to focus the new X we world as over be year-to-date, time. Overall, represent international Europe, global a XX% nearly to we significant the well. our as extend snowboarding, ambassadors regions now Our new total partnered

Speaking the we John were sports in see Summer Olympics of excited of Paris in X to in Alex Florence and compete including and [indiscernible] us at John ambassadors, Simmers surfing Katie climbing.

some incredibly are with to We partner proud what they in the do. of best

the Launching license [indiscernible] to NFL YETI's by into and XXXX establishing continued this Cowboys our key XX as we NFL been and to the signed look all cooler programs. licensing and coolers for also building soon up be drinkware is [indiscernible] partnerships our team. Dallas further this with will to licensed NFL Under fans to teams. through the with We're movement our able to agreement, sports purchase excited has and supported official announce agreement newly licensing we NFL. first us team of drinkware forward season, this beyond. partnership program move the as officially

a deals that new the of to X leagues build These includes global pro range in the foundation now U.S. on partnerships. of largest sports addition a wide in

linear the range leveraged awareness in quarter position market, playoffs our in and our delivered live previously in innovation, we on and extend product on we mentioned with full and to Cup brand and a TV, games strong category our across as sports, this reinforced the crossfit heritage coolers focus soft the audience. as and innovation integrating media streaming campaigns channels a hard of consideration, Looking Stanley leadership and coolers online in including range coolers we of our at placements

delivered around these prioritized education conjunction innovation these have with messages cooler these products to our how products, hard category. we We efforts, the the In category. why bringing and while reinforcing redefined

in and with wheeled personal the side, the First, quarter. the Roadie in XX Roadie XX later

demand with see the our Roadie launch in cooler lineup, price of working are recent point. We opening to and our the strong XX, an are smallest the featuring signals for We excited product most build hard this supply. attractive $XXX the early particularly

the some up we persistent throughout of well and ultimately back also use our within category higher around a in quarter perform which cooler despite half cooler our highly the soft market cooler of the later are spending, as and optimized expectations, products containers. Overall, we our first durable food this introduce organization and believe coolers, stand-alone. year. our filled hard saw will year, the for for our exceed narrative complement ecosystem and set us we To ticket the storage will These

on On the first YETI and the equipment the designs a track integrate quarter post We've starting team. long-term are roughly we year X road continue the side, robust [indiscernible] mystery the to in launch range new products to and talent category with acquisition. a map XXXX, of for established of of

highlighting are of mugs. and This strong number We're new industry products and the consumer stackable continue broader tumblers evident demand. expanded the French new to our in strong which particularly deliver, press, additions Drinkware, including sentiment beverage receptivity with seeing a that excellent social received to also straw In the opportunity space. was accolades, food our and

Our starting the year, cookware line products. of of will the category the continue second of with in half expansion our first introduction

$XXX. be will YETI world, which in We prices will YETI for of the to opening this our the forward. be later we X ranging planned, will the space introduce opportunities door broader and believe $XXX initially cooker sizes [indiscernible] As in in cast going month caster iron culinary from best this direct available with the channels

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the of these our of demonstrate impact cards DTC quarter second the on strength gift channels. balanced business, Excluding results our

full in the card business. As our expected, gift the we e-commerce saw impact comparison of

the we value saw quarter, be and order discerning we their purchases. per by In units average transaction. to consumers with we the positive as in trend to pleased expect continue were

continues emergence continue our our to sales positive strong caution C&E. driving and corporate provide order in included corporate in volume across business, spending. and even to the we business Amazon see though Our in international Growth U.S. Marketplace Drinkware growth of reach, signs of

focused unparalleled of on our quarter. are of on track announce grand end Canadian Within We excited retail store reach year Calgary. We delivering locations of second opening our customer and Kansas first remain during to XXst City by today's XX experience. the an added incredibly our to retail the stores, we the YETI store in outside we're

positioning strong consideration highlighting brand's positive buying healthy our demand In season we've summer channel, balanced wholesale categories, the the saw and channel. for across inventory and levels our across the maintained we

we with in broadening and our partnered existing thoughtfully As experience continue we our our opportunities to have globally new match of accounts range accounts, wholesale product categories. with new build that brand highlighted recent quarters, explore

growth travel. also relevance our and growth for Our to opportunity playbook continues that and showcase YETI. reinforces It the international brand

the this during total bullish XXXX period. to a increased XX% the of strong XX% regions. ramp last to Asia and XX% little across opportunity, revenues as as reach we begin from period our for Europe in approach Europe International growth our more our XX% [indiscernible] gains Providing channels. incredibly color posted a mix and We're business, particularly XXXX. on year continuing existing to in on

We also the during made several foundational quarter. important improvements

U.K. the the service Netherlands are to in our providing year. First, customers. in of we efficient in more following [indiscernible] successfully similar operational transition network work facilities completed our Both the a last

new And driving this our is opportunity. are focus Director excited relatively in to as still a look second, we're we addition and what brand With scale productivity, excited Europe his region. the building with to of on untapped EMEA add as Bergin our Martin we incredibly Managing

both meeting momentum, see outperform we with channels. Our customer, our The market. meaningful is need extend continues for corporate the where in [indiscernible] the and business sales. the we a of here e-commerce Customization leading area to Australian on is Sports with still opportunity. staring debut expectations remain sports premium urban step focused another recent the across an for the opportunity retailer To key Rebel

the reach and continue In expanded Canada, match offerings U.S. to drive we our to of the product omnichannel

to share across impactful North America. Additionally, spend opportunities we brand are finding

Cup we brand amplified our With both was American that showcased with Stanley team playoffs. ran the [indiscernible] product mentioned, highlighting This the and throughout As NHL YETI a and Canadian in the boards a license. Finals. marketing campaign combination the around brand of

Canada performance challenging, encouraged capabilities our at to progress largest our remains scaling the traction accounts. our are growing customization we e-commerce environment wholesale we the our sales. making and While of sell-through business, Australia, corporate also by Similar the in including were

and and first opportunity the I'm the of the proud I look and of year profitable brand ability the deliver for immense and accomplishments their to team of our front our at us. strong in YETI drive half growth.

incredible considerable in ongoing we see the focused challenges balance the market, P&L growth in strength our while investing Given the of the remain sheet, on all and we highly opportunity globally. managing our and

over call the turn to and Mike like to to outlook. results would updated I Now discuss our

to several start, our good and like GAAP a and contained quarter Matt, To overview period of review that the numbers the our outlook. the then our performance Thanks, to morning, the both balance quick an for look second current results. with year We would impacted taking I'll XXXX to ago fiscal forward call. in for items of provide then period everyone. I non-GAAP and close your update questions

start GAAP results. impacted our I'll X that with callouts

First, SG&A period by other sold by expense goods reserve reserve. million initially consumer QX adjustments by GAAP better $X.X cost This of sales our produced last QX to reduced $XX.X $XX.X recall in reflect XXXX year's GAAP second quarter and several of updated established of included This actual reduced year to prior and XXXX million. year year costs then recall prior update activity. prior and million was GAAP

second made recall the were adjustments quarter. to year's no comparison, reserve this in By

Second, that we margins. accounting X on costs earlier year, this of results the transition quarter with acquisitions this impact GAAP our our include made primarily the associated purchase gross

historical per these of our practices, excluded are non-GAAP the As and reporting nonrecurring impact results. from our other items

All non-GAAP performance basis the the better a the to will on results of discuss be I on business. that will today's on of call operational focus

to on of details quarter. the the moving Now

was increased business. was quarter compare rate coolers above our our to quarter wanted and and international Second I to mention. dynamics There in X by specifically This sales our were X% expectations in million. $XXX that performance our growth equipment led this and

redeemed redemptions compared net nearly just last to $XX.X First, this quarter. XXX point million card $X.X year-over-year gift this redeemed QX growth from million quarter's with includes a basis headwind

contributions And from the Ranch. second, includes quarter Mystery this also

We top We are increased approximately sales XXXX. to YETI our X combined growth deliver the and line in the acquisitions, by categories, in growing equipment pleased momentum of Matt with initiatives outlined. supported quarter remain strong and of for million. track a XX% our Reviewing basis on integration to $XXX they points XXX and that coolers had coolers

complete and outperformed Coolers with across year's backpacks in stock line our the costs Soft following market expectations M-Series last fully of the recall.

the the tough the given the market it comparison were season. Our and the experienced But our coolers Roadie back hard XX, a not business further heading with XX in very from the the faced soft into year half benefit Roadie pleased peak we initial cooler of optimism coolers new having summer year. supporting in last of performance for

to and categories, lines bag Within our well product expectations. YETI perform [indiscernible] equipment exceeding the continues business with [indiscernible] our our

Camino our as to bags nicely of continue product In line the awareness tote fantastic addition, grow this builds.

year perform Finally, new assortment which X% with and Drinkware increased as innovation the international indicated, Mystery Ranch Category products supported line overall continue line in success past $XXX million, contribution breadth be of our continues to the the was in by to our business. expectations. of the product launched growth to sales generally over our and from expectations. with strong

and in Our growing QX. barware highlight also lineup tabletop of a was options

several portfolio, Stackable other such as press off for and XX attachment new are we XX fantastic good French mug. Rambler launch, in Cup the new products Rambler our a stackable mentioned, our Matt As is and start seeing since to our

these the last As all of within a XX products months. reminder, launched

out In success, flash were our than later addition, to in products week. less in and releases limited both quarter. a the in We third glass shock plan back a have selling stock

in and the solid and healthy Drinkware. of both sell-through a growth perspective, sales year. Drinkware. From remains with the and to sales to a We saw categories support X% as demand in growth $XXX in million, both channel to also wholesale basis grew increased is million, Direct-to-consumer $XXX by Inventory driven both on [indiscernible] well. C&E for half the back positioned channel XX% well across growth

business. it by of especially our with Amazon growth growth All posted of e-commerce, entire pleased gift in DXC were impact. the also the considering the absorbed quarter, our We led channels card

DXC Excluding approximately the XX%. headwind total from growth was gift cards,

million, Outside in U.S., to the Australia. Europe strong $XX sales grew growth by XX% driven and

to to believe drive be needed the continue that the we We teams for and support and establish we expect infrastructure opportunity is investing what seeing build a with and the pleased to growth. continue to out significant very our results awareness, internationally momentum brand local are

of XX.X% point to this XXX gains from same strategic basis from increase profit points XX coolers from XX basis points during points freight year. basis Gross were million XX% These the a price partially to costs. on in basis lower other impacts. last by product first margins. to certain and from increased hard we drivers sales quarter and inbound includes implemented offset combination decreases Positive on lower compared the $XXX Moving points XX of period XX.X% smaller basis that or of XXX

in year. of driven XX increased driven as compared points of the for Variable our to basis by XX.X% sales, the increased as a XX.X% costs. $XXX sales million points employee last XX expenses expenses percent expenses sales, basis same quarter Amazon of SG&A higher to XX% primarily percent increased period a Non-variable or primarily by channel.

variable get do to we modest forward, this expect on Looking leverage cost the second of some year. half in our

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

the quarter year Turning million cash to ago compared in period. our million sheet. the to with We in $XXX $XXX balance ended

full from our year-over-year $XXX XX% driven Ranch. Mystery as increased primarily Inventory soft our of well to lineup by coolers as acquisition million, return the of of inventory

sales to year-end in growth continue inventory expect be growth. to range of We the

million indicated channel product launches. quarter. second the finance basis of the at excluding as debt, can was fees deferred a financing fluctuate wholesale and last quarter, $XX timing million last unamortized and leases, Total quarter-to-quarter based compared So on shipments on year's we growth to $XX end of

points and includes our but compared points is which sales, increase growth. expect sales headwind fiscal XXXX net fiscal X% to XXXX top our also of include adjusted approximately from contribution QX now to X% and a X% We up line full XXX year between between basis a to our XX% approximately continues turning of XXX from acquisitions, basis prior range This outlook to Now gift outlook. from cards. of

Our growth quarters. and expectations expect the and for of the across we unchanged, year third half balanced the to fourth be back are relatively

what We the planning year. the we prudently conservative a continue our approach take for to demand call second of half in would

higher channel, our geographies. slightly second we elements channels, several expectation and channel updating are for our we versus categories given We wholesale our as DXC continued across strength outlook and year. the expect the from performance in QX look in By sell-through now our of and sell-in half of performance

category, in By innovation performance coolers products. expect to soft and we continue Drinkware, strong Misery hard the to incremental in equipment supported coolers and outpace of recent sales coolers, Ranch by

now from approach QX our target XX% approximately performance, last XX.X% versus target the And growth growth mid-single-digit in increasing XX.X%, year. and range. approximately XX% we we holding our expect are to XXXX Finally, international up gross of strong our prior domestic margin with to

Over significant drop inbound the quarters, X in the in last gross rates. we freight post-pandemic margin benefits realized have from

now half have we comped we from the margin gross period. these continue compared as to to benefit second lower approximately expect costs, the our prior much Given year freight flat of to be

costs. to new mention in want it to inbound freight market I as dynamic Also, the relates a relatively

on and season at contract, prior years capacity While the in under year we most than shipments earlier of higher we our levels. inbound seen are in seeing have freight surcharges projected is peak

in through will transitory the our upside be within QX these year believe is manageable the our gross full which costs us margins to outlook. to P&L, allowing we and flow However,

of traction, to a into With initiatives efforts. a these expansion incremental global we of investing margin our continued portion SG&A support number gains across gross are

XXXX. and above grow adjusted end slightly high We with of end expect XX.X% and rates third now approximately prior a the margin outlook the As of the in fiscal quarters. now expected we range and both result, compared our to in similar of year operating fourth growth XX% of SG&A between expect to XX.X% at our sales full high XX.X%

reflecting And accelerated XX% share diluted XX.X% tax to XX.X% per approximately was fully $X.XX, repurchase approximately line, XX% diluted shares share XXXX. of between adjusted to year expect $XX rate Below the $XXX April. we XXXX full year, that of the in and fiscal in now an expect executed we the $X.XX million, rate million slightly $X.XX effective above for to operating outstanding earnings to increase in compared and the

we and and cash between for free of million. As $XXX expect flow cash, now year million of capital $XX expenditures and million full between $XXX million $XX

we This allocation balancing Going opportunistic quarter capital approach great million the remain forward, was our opportunities and will both another $XXX for YETI. remaining authorization. with M&A repurchase share

which product investing free our outlook execution is back Our year, confidence half flow, strong led remain to top us to year. performance in and the to through our will focus, half Heading delivering front while the our into strong shareholders. tremendous international in which the and for believe create value business our we of in the raising consistent expansion growth line for powerful in our supported omnichannel and driving cash model, our first opportunity generating bottom in growth of earnings we take a what also strong of us further advantage allow will innovation,

we remain incredible the on importantly, brand. growing will and strengthening Most YETI focused

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

Instructions] [Operator from question Brooke Roach. first coming be will Our

back-to-school brand remarks suggesting update recently give from the And momentum then as I'm heard demand on the . spoke lot the of U.S. to forward, sources, throughout comments each holiday seeing you key head of you how coolers and for what XXXX? variety sales the in confidence an current for the season? you the trends into in hoping look You if across a a quarter. a in gives into you're momentum YETI us categories macro of backdrop. you We've prepared about building can your sustain choppier

I'd question. few the things. for Yes, say thanks a Brooke,

and across at and both consumer look performance in QX like the price in in is as nature think falling coolers really think points, we and introduced go the soft saw factor, We market, we giftable we use really only the gave both in we and around important choice coolers not QX the choice thing we in what season. said, them market. as had an we which as of across but the innovation gift-giving products the we and hard about that individual coolers, QX had the our form as importantly, coolers I As gave into

positive saw We wholesale trends.

and think, is the we really inventory, we good that in strong the work. innovation we our world you in around seeing. market that continues see shape U.S. strong and with really Importantly, the And the product uptake like brands, innovation we're that when to support marketing,

we feel is -- items where we in said I higher and positioned, business focus. the good choppier multiple So we about my be recognizing And point market. price remarks, going for that in quarters, it a to as is to think are continue said

quarter. If trying So In seeing seeing opportunity traffic. adoption. drive globally strong of we markets, great international to want. but global the products leads the then want great really strong we're their great I markets in a interest put the for brand that we're traffic same want down, over And more and to we I overall and engagement, want And where drive newer. say continuing seeing play seeing front we established across think portfolio. to that's We're stride. to range of particularly the consumer really and We're international we're they're value, a consideration We're what our in drive hit quarter consumers really interest. slows brand YETI, to that would in to they really purchase where that's innovation

the What track your is that sustainable what margin long-term mindful gross all-time be And And are now on margins Can and the from rate Mike, gross achieve then thoughts the with high in see we YETI second should of puts gross on an the takes for margins . for for to you opportunity you ahead Great. of? rate provide maybe here? company? half XX.X%.

thanks the for Brooke, question.

for with obviously transportation with with So did as there in points the to expanded last the QX saw within we by prior which much XX in margins we -- are prior There say inbound half, benefits versus more get you year, a led I you'll year take the also we QX, to second narrative a into really ability costs XX costs. in points we But wanted as in year. the QX, were few gross things quarter, product XXX would driver in basis consistent line primary for really well. being if the gross margins is but up gross see the the market address. that at from transportation we said that costs. around what happening what basis It's to look to margins we XX.X. our pleased

year. even those, of our line other still increase last basis But we and some points which those able would to given can opportunities we margins be P&L, manage and year be within with XX.X, the think to increase versus items gross for XXX an

margins as look As still guidance we opportunities careful. gross want we we now today, but believe go forward. we have forward, we be to within We're not giving for XXXX here

optimize to did strong think gross there's as there's we we incredibly stepping some in year, year. think this hard have and place And go more think this other There's opportunities were actions have mix. We for pull cooler take I sales I the back, majority forward. -- pricing of levers items. in to line We we margins, the which opportunities

together opportunities drive gross the see sensitivity our we're manage SG&A time, operating time margin of mix to variable over product et which some there margins building, You priority to to be that have could to is forward, mix the forward. out I really to and going to what while and is believe going be we up margins continue thing important other going think sort we are sales going up is cetera. regions But that mix, drive with whether still of channel international, over

be Next from question coming on the Megan line will Alexander.

on question there. first just Brooke's follow-up Maybe a

informs exiting trends On or the a sell-through was between periods some on more your embedded broadly, demand, look Day either how compared to those like how half. quarter? but the you the can we comment Mother's Day, key what maybe that maybe and seeing, Father's whether of on can saw you that obviously, in and sell-through just cooler positive the moments the quarter then perspective as comment to low you're some and you And in expectations positive back around from just

of are we coolers positive did equipment, I in those I'd see feel couple on about the a where Megan, great we positioned, sell-through assortment and have. call. say things in mentioned there. that the products we

was price really getting the and a the lineup of lineup but soft the our Roadie the price our introduction said, our cooler opening setup cooler then -- a plus introduction of for our rest I great Roadie wheeled of cooler contributor QX, XX kind point with As is hard plus cooler year. also our a great XX personal-sized open big to of point

driving on is more the to demand, think be as think, consumer focus we I going I said, As I discerning.

I focus. are to points in think price higher be going

desirability that, And gift-giving in play product our part a so as of performance. continue it to and of our We big saw would QX out be that expect we QX, item. the will a

thing in think just I we of moments the the holidays. product. the question introduce harder low your of how the that's to It's cadence

We're for Roadie XX. we on said supply. saw demand I the building our As strong call,

assortment still and perspective there. into So a capacity from kind inventory full we're our building of from an

also are up outcomes. about delivering our we all We year. the things strong a of think of for in that lot are the back way and XXXX, market set those we're the feel half a of I about outside good control. the of But we So good a feel opportunities. range There's prepared

can, brands, which demand on really to product, consumer strong market. we things the we and So channels focus

kind gift really Got to I big to be That's take International you return underlying you've X of growth. card And quarters picture, accelerating. if seems lap guess, maybe straight helpful. the year, had from last out double-digit the a of it.

give you're them you low what top back you improved line and algo? performance can confidence double-digit get the seeing does to that that So

you globally. and things the in the is with we're out unlock think to opportunity creating which seeing coolers of for for relevance equipment scaling is would things business reach That still the this our opportunity and us. have incredible believe we continues the is there's brand portfolio that Drinkware diversification innovation, our resonance and strong and it do, we laid that which I an said what are business, that doing international

return as gift are said, is, So we the to that's today. cards, take double-digit you of that if the you noise out where growth can

is of of if for and really of outsized we we incredible do adoption plays a and us. product portfolio with a an keep front product -- lot in think think roll what sort is I through portfolio consumer year, growing and there out the demand focus that kind that's still you our how of driving out

question Konik. is Next from coming Randy

you've talked of you is usage I the and as what for the through kind guess, innovation. I about talk portability occasion tenants about the innovation, in want years, way of key kind think about and I over past to -- go think Matt,

the talked of You've on call about success [indiscernible] the the press.

You about in talked the press launching the year. release Cookware later in

how on a thinking maybe around kind more Maybe kind the in and of home, well. you more of outdoors, is thought -- category kind dynamic campfires both going give thinks holistic of more elaborate around the outside going about the as home great YETI Cookware forward? are process the also So then of your innovation forward? everybody opportunity and of us attacking . of but inside you think the And recent

central would of then And a reason and durability what absolutely is products up how design innovation and that's I things, we camp think drops coffee and product. but French a part expansion, of our press, some performance stand product most extreme into It's inside we make that it's from with the outdoor for the they because level demanding been ambassadors to prepared few about Randy. as we to too. use and most ultimately is enough, to the Thanks, around do. a and performance that think can say knocks was the between our we durability, we that audiences DNA the our being site, of spectacular and product and French of our the press the design Funny but transferable one outside. in outdoors, home, product portable

done believe, I and so of things always, perspective the product that And from of is versatility. YETI well a think that one I range idea incredible has

is That at a And connect the you these daily at multiple a put So how be it want could way. be journey. products be your the to cup your so throughout touch products with their could We that continue the day throughout that or day start their more pickup to consumers in we the along end of that may want down moments we life. you more say end be you stays brand. day, It's YETI to and all with I you how it's don't stays and and a day really daily and the wouldn't a be strategy. change way brand of fill -- consumer that it

a that bit a French cooler press consumer. backpack is little to a kind of the a at to around night ecosystem So of

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in will from line Next Brian be coming McNamara.

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who Could of -- about. front I think end missed I the asking repeat you the you that were question?

new Ninja, Ninja [indiscernible]. The coolers,

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any just And the then participate can provide sort commentary in Amazon on you July, just helpful. Day the Incredibly of you maybe versus as year? more in prime through you any to And last follow-up move Prime is, events my year? plan

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wil Thanks Altobello. line very in Joe much. from Next

I appreciate the question.

Matt. guess the first you, I So for question

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you're hopefully I'll Yes for Joe, getting I question. the think, address, at. thanks And what

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think innovation over last really months any change in I brand, forward in lineup going that's have backdrop something is have X about think going demand to in to the the our the we a I feel that is So in where think coming the And and have be about that's categories. to the innovation, we great do and the discerning we drive well. we're years interest and consumer [indiscernible] those we for

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did little corporate Can cautious how the that you corporate bit? on You elaborate [indiscernible]. spend. a And mentioned

Joe, it's Mike.

So Yes.

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final from Duffy. Jim Our question be coming will

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you've Okay. at it great new a Clearly, products. the that. with I'll job . leave done Great.

Jeff. you, Thank

like call the to now closing Mr. for back turn to Reintjes over I'd Matt final comments.

Thanks We call. to forward QX our speaking you joining us. all for look with during

this Ladies you and and for your today. for please you participating ask your concludes gentlemen, conference disconnect thank lines. that call We