Fourth quarter sales at high end cooler maker Yeti (NYSE:YETI) took a big step forward with across-the-board increases in all product lines and distribution channels, easily beating Wall Street estimates, but its stock fell anyway as fears about the spread of the coronavirus took down the broad market indexes.
Yeti also has some big ideas about the coming year as it offered an upbeat outlook, forecasting consumers will continue to respond to its offers with 13% to 15% sales growth and earnings more than doubling over the current year. On an adjusted basis they're expected to gain a robust 26% to 30%.
Growing in a big way
Yeti said both direct-to-consumer and wholesale channel sales grew by double-digit rates. The DTC funnel, which includes its online store as well as a growing number of physical retail outlets, saw sales jump 35% to $149 million while wholesale net sales, which includes those made at retail partners like Dick's Sporting Goods and Lowe's, were up 14% year over year to almost $149 million, putting them on even footing for the first time.
Drinkware and accessories continue to grow at an accelerated rate, rising 34% to $192 million, while sales of its coolers where it made its claim to fame rose 12% to $102 million. It was primarily its soft-sided coolers, rather than its rigid ones, that helped drive sales higher as they're able to be used in more locations and occasions.
Having moved most soft-sided cooler production out of China, it appears to have avoided not only the extra costs associated with tariffs from the trade war, but the impact of the coronavirus outbreak that has shut down numerous industries there.