Executive Summary

Q4 2024 was mixed on GAAP but solid on an adjusted basis: sales rose 5% to $546.5M (adjusted +7% to $555.4M), while GAAP EPS fell 30% to $0.63 due to a $9.9M unfavorable recall reserve adjustment and FX losses; adjusted EPS rose 11% to $1.00 .
Margin picture: GAAP gross margin was 59.7% (down 90 bps YoY), but adjusted gross margin held flat at 60.2%; GAAP operating margin contracted 380 bps to 15.1%, while adjusted operating margin ticked up 10 bps to 19.9% .
FY25 outlook calls for adjusted sales growth of 5–7%, adjusted EPS of $2.90–$2.95 (up 6–8%), adjusted operating income growth of 5.5–7.5%, and FCF ~ $200M, with FX a headwind (~100 bps to growth and ~$0.10 to EPS) .
Stock-relevant catalysts: strong Coolers & Equipment momentum (hard coolers, bags), accelerating international growth (+27% in Q4), a $350M increase to the repurchase authorization (now $450M remaining), and development of a powered cooler platform; watch near-term U.S. Drinkware competition/promotions and tariff/FX headwinds .

What Went Well and What Went Wrong

What Went Well

Broad-based adjusted growth: Adjusted sales +7%, with DTC +10% and wholesale +3% on an adjusted basis; category strength in Coolers & Equipment (+17% adjusted) and international +27% .
Adjusted profitability resilient: Adjusted gross margin 60.2% (flat YoY) and adjusted operating margin 19.9% (+10 bps YoY), supporting adjusted EPS +11% to $1.00 .
Strategic execution and capital returns: Raised repurchase authorization by $350M (total $450M remaining) and acquired IP to develop a powered cooler platform, highlighting a balanced capital allocation and innovation pipeline .
Management quote: “Innovation and product diversification continued to drive demand…with particular strength in hard coolers and bags and with strong growth internationally.” – CEO Matt Reintjes .

What Went Wrong

GAAP EPS and margins pressured: GAAP EPS down 30% YoY to $0.63 and operating margin down 380 bps to 15.1%, driven by a $9.9M unfavorable recall reserve adjustment and FX losses (other expense: $(13.5)M vs +$4.2M prior year) .
Promotional intensity and U.S. Drinkware competition: Management cited more discerning consumers and heightened promotional activity in the U.S. market weighing on Drinkware .
SG&A deleverage on GAAP: SG&A rose 12% and increased 280 bps as a percentage of sales (44.6%), with higher employee and marketing costs; adjusted SG&A as % of adjusted sales held flat at 40.3% .

Financial Results

Core Metrics (GAAP and Adjusted)

Metric	Q4 2023	Q3 2024	Q4 2024
Net Sales ($M)	$519.8	$478.4	$546.5
Adjusted Net Sales ($M)	$517.0	$478.4	$555.4
GAAP EPS	$0.90	$0.66	$0.63
Adjusted EPS	$0.90	$0.71	$1.00
Gross Margin (%)	60.6%	58.0%	59.7%
Adjusted Gross Margin (%)	60.2%	58.2%	60.2%
Operating Margin (%)	18.9%	14.6%	15.1%
Adjusted Operating Margin (%)	19.8%	16.6%	19.9%
Versus Estimates	N/A – SPGI consensus unavailable (see Estimates Context)	N/A – SPGI consensus unavailable	N/A – SPGI consensus unavailable

Notes: Company stated Q4 adjusted sales were “above our expectations” .

Segment/Channel/Geography Mix

Metric	Q4 2023	Q3 2024	Q4 2024
DTC Sales ($M)	$344.9	$280.8	$368.6
Wholesale Sales ($M)	$174.9	$197.6	$178.0
Drinkware Sales ($M)	$346.0	$275.0	$358.1
Coolers & Equipment Sales ($M)	$165.0	$192.6	$180.2
Other ($M)	$8.8	$10.9	$8.3
U.S. Net Sales ($M)	$434.4	$390.2	$437.6
International Net Sales ($M)	$85.4	$88.3	$108.9

KPIs and Additional Items

KPI	Q4 2023	Q3 2024	Q4 2024
Gift Card Redemptions (Recall Remedies) ($M)	$6.5	$2.7	$1.7
Cash ($M)	$439.0 (FY end)	$280.5	$358.8 (FY end)
Total Debt ($M)	$82.3 (FY end)	$79.1	$78.0 (FY end)
Free Cash Flow (FY) ($M)	$235.3 (FY23)	—	$219.6 (FY24)

Non-GAAP/adjustments of note: Q4 included a $9.9M unfavorable recall reserve adjustment impacting reported net sales (−$8.8M), SG&A (+$1.8M), and pretax income (−$9.9M), which are excluded from adjusted results .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Sales Growth	FY 2025 (53 weeks)	N/A	+5% to +7% (≈100 bps FX headwind)	New
Adjusted Operating Income Growth	FY 2025	N/A	+5.5% to +7.5% (≈350 bps FX headwind)	New
Adjusted EPS	FY 2025	N/A	$2.90–$2.95 (FX headwind ≈ $0.10)	New
Effective Tax Rate	FY 2025	N/A	~24.5%	New
Diluted Shares	FY 2025	N/A	~84.3M	New
Capex	FY 2025	N/A	$60–$70M	New
Free Cash Flow	FY 2025	N/A	≈$200M	New
Share Repurchase Authorization	As of Q4’24	$100M remaining (prior)	+$350M increase; $450M available remaining	Raised

Management noted a 53rd week in FY25 with minimal impact (<1 pt of growth, slightly dilutive to OI), based on historical pattern .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prev-2)	Q3 2024 (Prev-1)	Q4 2024 (Current)	Trend
Supply chain diversification	Building foundation; progress toward broadening global supply footprint	Targeting 20% drinkware capacity ex-China by YE24; 50% by YE25	Ahead of plan; expect 80% of U.S. drinkware capacity outside China by YE25	Improving execution
Tariffs / macro	—	Discussed options/unknowns; can ship China-made goods directly to non-U.S. markets; manage with pricing if needed	10% China tariff would be <~$10M cost if in place full year; not in outlook; cost optimization and potential pricing offsets; Mexico exposure smaller	Manageable headwind
Product performance	C&E +31% (soft coolers, bags); drinkware +6%	C&E double-digit growth, hard coolers and bags strong; drinkware +9%	C&E +17% adj; hard coolers and bags strong; drinkware +3% (U.S. more competitive)	C&E outpacing drinkware
Regional trends	International +35%	International +30%, 18% of mix	International +27% in Q4; mid-teens growth outlook despite ~500 bps FX headwind; Japan commercial launch in 2025	Sustained strength
Promotions/competition	—	U.S. market more discerning; targeted promotions	Heightened U.S. competition/promotions, YETI using targeted promotions; U.S. drinkware flat in 1H25 then reaccelerate 2H	Persistent intensity
M&A/Innovation	Noted brand momentum; outlook raised	Mystery Ranch integration; purchase accounting costs	Acquired powered cooler tech/IP; development underway; no 2025 revenue assumed	Pipeline expanding

Management Commentary

Strategic posture: “YETI’s full year 2024 was capped off by a strong fourth quarter… in a market… with more discerning consumer buying behavior, more promotional activity, and heightened competition, particularly in the U.S. market.” – CEO Matt Reintjes .
Category/geo strength: “Particular strength in hard coolers and bags and with strong growth internationally.” – CEO Matt Reintjes .
Outlook framing: “We expect adjusted operating margin expansion in 2025… and another strong free cash flow year in 2025.” – CEO Matt Reintjes .
Execution vs plan: “Sales increased 7% to $555M, which was above our expectations,” with C&E +17%, DTC +10%, International +27% .

Q&A Highlights

Tariffs: A 10% China tariff would be “less than a $10M” annual cost if in place for the full year; not included in guidance; management will pursue cost optimization and consider pricing actions; Mexico exposure smaller .
Powered cooler platform: Acquisition is a development program; no FY25 contribution assumed; fits hard cooler portfolio under YETI brand .
U.S. Drinkware trajectory: Expected roughly flat in 1H25 (down in Q1; back to growth in Q2) and approaching double-digit growth in 2H25, with heavier 2H innovation pacing and supply-chain diversification impact .
53rd week: Minimal impact (<1 point of annual growth; slightly dilutive to operating income) .
Promotional environment: Targeted promotions continue; competitive intensity expected to persist; strategy is product diversification and innovation to sustain relevance .
Wholesale growth mechanics: More assortment and shelf space with existing partners; limited new door expansion planned near term .

Estimates Context

S&P Global/Capital IQ consensus estimates: Not available due to data access limits at the time of this analysis (Daily Request Limit exceeded). We attempted to retrieve Q4 2024 quarterly revenue and EPS consensus and were unable to access the data. Values would be retrieved from S&P Global when available.
Company context: Management indicated Q4 adjusted sales were “above our expectations,” suggesting a positive internal variance even as GAAP results were weighed by recall and FX .

Key Takeaways for Investors

Mix shift working: Coolers & Equipment continues to outgrow Drinkware, supported by hard coolers and bags; this diversifies growth away from more competitive U.S. Drinkware and supports adjusted margin stability .
FY25 guide is constructive despite FX/tariffs: Mid-single to high-single adjusted top line growth, adjusted EPS +6–8%, margin expansion, and robust ~$200M FCF signal ongoing operating discipline; FX and potential tariffs are monitored and appear manageable .
International is a durable growth engine: +27% in Q4 with continued double-digit outlook in 2025 even after FX drag; Japan launch in 2025 provides additional optionality .
Capital returns and balance sheet strength: $450M remaining repurchase authorization and net cash position (cash $358.8M vs. debt $78.0M) provide downside support and optionality to invest in innovation and M&A .
Near-term watch items: U.S. Drinkware promotions/competition, Q1 gross margin mix headwind (~50 bps expected decline YoY), and SG&A phasing (Q1 deleverage, improvement through year) could influence quarterly trading cadence .
Medium-term thesis: Brand strength, innovation cadence (including powered cooler platform), international scale-up, and supply chain diversification underpin sustainable revenue growth and expanding adjusted operating margins over time .

All figures, quotes, and guidance are sourced from YETI’s Q4/FY24 8-K and press release and the Q4 2024 earnings call transcript, with citations provided.

YETI Holdings, Inc. (YETI)·Q4 2024 Earnings Summary