In its first report since becoming a publicly traded company in October, Yeti Holdings Inc. (YETI, Financial) recorded better-than-expected third-quarter earnings before the opening bell on Thursday, causing shares to spike before reversing lower.
The Austin, Texas-based manufacturer of coolers, insulated drink tumblers and other outdoor products posted adjusted earnings of 24 cents per share, topping Zacks Investment Research’s estimates of 21 cents. Revenue grew 7% from the prior-year quarter to $196.1 million, beating expectations of $196 million by a hair.
While wholesale channel net sales were flat from the year-ago period at $125 million, Yeti’s direct-to-consumer channel saw net sales climb 23% to $71.2 million, driven by an increase in purchases on its website and through its authorized listing on Amazon (AMZN, Financial) Marketplace.
Net sales of drinkware grew 37% to $104 million due to growth in the wholesale and DTC channels. It also benefited from introducing new and expanded product lines as well as customization options. In contrast, net sales in the coolers and equipment segment decreased 16% to $86.7 million as a result of discarding excess inventory in the prior-year quarter.
In a statement, President and CEO Matt Reintjes commented on Yeti’s future growth plans.
“Looking ahead, we remain committed to executing against our growth strategies through expanding our customer base as we drive brand awareness, introducing new and innovative products, accelerating DTC sales and expanding our international presence,” he said. “YETI is an exceptional brand with enormous opportunity."
For the full fiscal year, Yeti guided for revenue growth of 19% to 20% and adjusted earnings per share between 79 cents and 82 cents.
After hitting its highest price since its initial public offering of $21.45, Yeti shares tumbled 7.5% to $17.76 on Thursday morning. GuruFocus estimates the stock has risen 4% since its debut.
Disclosure: No positions.
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