yeti-20240629

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________

FORM 10-Q

____________________________________________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 29, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-38713

_____________________________________________________

YETI Holdings, Inc.

(Exact name of registrant as specified in its charter)

______________________________________________________


Delaware						45-5297111
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

7601 Southwest Parkway

Austin, Texas 78735

(Address of principal executive offices) (Zip Code)

(Registrant’s telephone number, including area code) (512) 394-9384

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01

YETI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 84,651,997 shares of Common Stock ($0.01 par value) outstanding as of August 2, 2024.


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Statements of Equity			4
Condensed Consolidated Statements of Cash Flows			6
Notes To Unaudited Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			16
Item 3. Quantitative and Qualitative Disclosures About Market Risk			25
Item 4. Controls and Procedures			25
PART II. OTHER INFORMATION			26
Item 1. Legal Proceedings			26
Item 1A. Risk Factors			26
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			26
Item 5. Other Information			26
Item 6. Exhibits			27
Signatures			28


	June 29, 2024		December 30, 2023
ASSETS
Current assets
Cash	$	212,937	$	438,960
Accounts receivable, net	159,050		95,774
Inventory	378,296		337,208
Prepaid expenses and other current assets	56,966		42,463
Total current assets	807,249		914,405
Property and equipment, net	131,858		130,714
Operating lease right-of-use assets	80,425		77,556
Goodwill	72,894		54,293
Intangible assets, net	136,886		117,629

Other assets	2,993		2,595
Total assets	$	1,232,305	$	1,297,192

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	175,199	$	190,392
Accrued expenses and other current liabilities	112,138		130,026
Taxes payable	23,821		33,489
Accrued payroll and related costs	17,856		23,141
Current operating lease liabilities	16,365		14,726
Current maturities of long-term debt	6,481		6,579
Total current liabilities	351,860		398,353
Long-term debt, net of current portion	75,829		78,645
Operating lease liabilities, non-current	78,217		76,163
Other liabilities	20,539		20,421
Total liabilities	526,445		573,582

Commitments and contingencies (Note 10)

Stockholders’ Equity
Common stock, par value $0.01; 600,000,000 shares authorized; 88,966,716 and 84,648,990 shares issued and outstanding at June 29, 2024, respectively, and 88,592,761 and 86,916,210 shares issued and outstanding at December 30, 2023, respectively	890		886
Treasury stock, at cost; 4,317,726 shares at June 29, 2024 and 1,676,551 shares at December 30, 2023	(200,878)		(100,025)
Preferred stock, par value $0.01; 30,000,000 shares authorized; no shares issued or outstanding	—		—
Additional paid-in capital	402,495		386,377
Retained earnings	504,687		438,436
Accumulated other comprehensive loss	(1,334)		(2,064)
Total stockholders’ equity	705,860		723,610
Total liabilities and stockholders’ equity	$	1,232,305	$	1,297,192


	Three Months Ended				Six Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Net sales	$	463,499	$	402,563	$	804,893	$	705,359
Cost of goods sold	199,193		187,725		345,774		328,651
Gross profit	264,306		214,838		459,119		376,708
Selling, general, and administrative expenses	196,886		164,507		365,882		311,279
Operating income	67,420		50,331		93,237		65,429
Interest (expense) income, net	(548)		(731)		111		(1,325)
Other income (expense), net	391		1,244		(3,710)		1,250
Income before income taxes	67,263		50,844		89,638		65,354
Income tax expense	(16,867)		(12,773)		(23,387)		(16,719)
Net income	$	50,396	$	38,071	$	66,251	$	48,635

Net income per share
Basic	$	0.59	$	0.44	$	0.77	$	0.56
Diluted	$	0.59	$	0.44	$	0.77	$	0.56

Weighted-average common shares outstanding
Basic	84,794		86,677		85,575		86,603
Diluted	85,468		87,196		86,313		87,141


	Three Months Ended June 29, 2024
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, March 30, 2024	88,906	$	889	$	373,697	(3,675)	$	(180,702)	$	454,291	$	(1,276)	$	646,899
Stock-based compensation	—	—		8,828		—	—		—		—		8,828
Common stock issued under employee benefit plans	61	1		(1)		—	—		—		—		—
Common stock withheld related to net share settlement of stock-based compensation	—	—		(29)		—	—		—		—		(29)
Repurchase of common stock	—	—		20,000		(643)	(20,176)		—		—		(176)
Other comprehensive loss	—	—		—		—	—		—		(58)		(58)
Net income	—	—		—		—	—		50,396		—		50,396
Balance, June 29, 2024	88,967	$	890	$	402,495	(4,318)	$	(200,878)	$	504,687	$	(1,334)	$	705,860

	Three Months Ended July 1, 2023
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, April 1, 2023	88,316	$	883	$	363,205	(1,677)	$	(100,025)	$	279,115	$	(617)	$	542,561
Stock-based compensation	—	—		7,338		—	—		—		—		7,338
Common stock issued under employee benefit plans	94	1		893		—	—		—		—		894
Common stock withheld related to net share settlement of stock-based compensation	(3)	—		(88)		—	—		—		—		(88)

Other comprehensive loss	—	—		—					—		(1,570)		(1,570)
Net income	—	—		—		—	—		38,071		—		38,071
Balance, July 1, 2023	88,407	$	884	$	371,348	(1,677)	$	(100,025)	$	317,186	$	(2,187)	$	587,206


	Six Months Ended June 29, 2024
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, December 30, 2023	88,593	$	886	$	386,377	(1,677)	(100,025)		$	438,436	$	(2,064)	$	723,610
Stock-based compensation	—	—		17,325		—	—		—		—		17,325
Common stock issued under employee benefit plans	404	4		(4)		—	—		—		—		—
Common stock withheld related to net share settlement of stock-based compensation	(30)	—		(1,203)		—	—		—		—		(1,203)
Repurchase of common stock, including excise tax	—	—		—		(2,641)	(100,853)		—		—		(100,853)
Other comprehensive income	—	—		—		—	—		—		730		730
Net income	—	—		—		—	—		66,251		—		66,251
Balance, June 29, 2024	88,967	$	890	$	402,495	(4,318)	$	(200,878)	$	504,687	$	(1,334)	$	705,860

	Six Months Ended July 1, 2023
	Common Stock			Additional Paid-In Capital		Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount				Shares	Amount
Balance, December 31, 2022	88,108	$	881	$	357,490	(1,677)	(100,025)		$	268,551	$	(420)	$	526,477
Stock-based compensation	—	—		14,113		—	—		—		—		14,113
Common stock issued under employee benefit plans	346	3		1,570		—	—		—		—		1,573
Common stock withheld related to net share settlement of stock-based compensation	(47)	—		(1,825)		—	—		—		—		(1,825)


Other comprehensive loss	—	—		—		—	—		—		(1,767)		(1,767)
Net income	—	—		—		—	—		48,635		—		48,635
Balance, July 1, 2023	88,407	$	884	$	371,348	(1,677)	$	(100,025)	$	317,186	$	(2,187)	$	587,206




Cash	$	2,051
Accounts receivable, net	3,940
Inventory (1)	17,164
Prepaid expenses and other current assets	3,858
Property and equipment	512
Operating lease right-of-use assets	1,087
Goodwill	18,600
Intangible assets	5,500

Total assets acquired	52,712

Current liabilities	(13,744)
Non-current liabilities	(753)




Total liabilities assumed	(14,497)
Net assets acquired	$	38,215


	June 29, 2024		December 30, 2023
Prepaid expenses	$	29,872	$	21,165
Prepaid taxes	18,651		15,089
Other	8,443		6,209
Total prepaid expenses and other current assets	$	56,966	$	42,463


	June 29, 2024		December 30, 2023
Product recall reserves(1)	$	6,871	$	13,090
Accrued freight and other operating expenses	33,257		45,228
Contract liabilities	9,770		22,437
Customer discounts, allowances, and returns	15,033		11,515
Advertising and marketing	13,991		9,945
Warranty reserve	8,990		9,808
Interest payable	155		159
Accrued capital expenditures	1,211		590
Other	22,860		17,254
Total accrued expenses and other current liabilities	$	112,138	$	130,026


	Stock Options			Performance-Based Restricted Stock Awards and Units			Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units
	Number of Options	Weighted Average Exercise Price		Number of PBRSs and PRSUs	Weighted Average Grant Date Fair Value		Number of RSUs, RSAs, and DSUs	Weighted Average Grant Date Fair Value
Balance, December 30, 2023	578	$	19.62	398	$	48.14	1,312	$	41.99
Granted	—	—		208	41.29		806	39.15
Exercised/released	—	—		(48)	79.66		(356)	43.90
Performance adjustment(1)	—	—		6	79.66		—	—
Forfeited/expired	—	—		(36)	45.62		(161)	41.86
Balance, June 29, 2024	578	$	19.62	528	$	43.06	1,601	$	40.15


	Six Months Ended
	June 29, 2024		July 1, 2023
Cash Flows from Operating Activities:
Net income	$	66,251	$	48,635
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	23,559		23,197
Amortization of deferred financing fees	326		276
Stock-based compensation	17,325		14,113
Deferred income taxes	(1,966)		15,309
Impairment of long-lived assets	2,025		—
Loss on modification and extinguishment of debt	—		330
Product recalls	—		8,538
Other	2,343		(2,792)

Changes in operating assets and liabilities:
Accounts receivable	(60,085)		(51,941)
Inventory	(25,380)		48,830
Other current assets	(9,946)		(11,468)
Accounts payable and accrued expenses	(50,065)		(54,109)
Taxes payable	(13,503)		(9,112)
Other	1,402		(1,025)
Net cash (used in) provided by operating activities	(47,714)		28,781
Cash Flows from Investing Activities:
Purchases of property and equipment	(21,636)		(25,068)
Business acquisition, net of cash acquired	(36,164)		—
Additions of intangibles, net	(14,635)		(6,849)

Net cash used in investing activities	(72,435)		(31,917)
Cash Flows from Financing Activities:
Repayments of long-term debt	(2,109)		(5,625)
Payments of deferred financing fees	—		(2,824)
Taxes paid in connection with employee stock transactions	(1,202)		(1,825)
Proceeds from employee stock transactions	—		1,573
Finance lease principal payment	(2,491)		(1,236)



Repurchase of common stock	(100,000)		—


	Three Months Ended				Six Months Ended
	June 29, 2024		July 1, 2023(1)		June 29, 2024		July 1, 2023(1)
Net Sales by Channel
Wholesale	$	213,129	$	176,175	$	366,697	$	312,004
Direct-to-consumer	250,370		226,388		438,196		393,355
Total net sales	$	463,499	$	402,563	$	804,893	$	705,359

Net Sales by Category
Coolers & Equipment	$	205,942	$	156,610	$	325,848	$	260,964
Drinkware	246,523		233,417		461,103		423,704
Other	11,034		12,536		17,942		20,691
Total net sales	$	463,499	$	402,563	$	804,893	$	705,359

Net Sales by Geographic Region
United States	$	386,886	$	345,888	$	662,682	$	598,874
International	76,613		56,675		142,211		106,485
Total net sales	$	463,499	$	402,563	$	804,893	$	705,359

SEC Form 10-Q filed by YETI Holdings Inc.