What happened 

Shares of Yeti Holdings (NYSE:YETI) jumped as much as 18.4% in trading Thursday after the company announced third-quarter 2020 earnings. At 3:40 p.m. EST shares were still up 17.2% for the day. 

So what

Quarterly revenue jumped 29% to $294.6 million on the back of a 62% increase in direct to consumer sales to $150.4 million. Net income was up 142% to $51.4 million, or $0.58 per share, while adjusted earnings per share increased from $0.27 a year ago to $0.61 in the third quarter. 

Yeti products in a store in Dallas.

Image source: Yeti.

Analysts were only expecting $260.2 million in revenue and earnings of $0.37 per share on an adjusted basis, so results easily crushed expectations. And short term, that's what typically drives a stock on a day like today. 

Now what

Yeti's strategy is clearly working, and it's impressive how quickly this consumer discretionary stock is growing in the direct market. That's ultimately going to be the way to build a relationship with customers and keep them coming back for more products as the business grows. If Yeti can continue to reach customers with or without more retail partners, this is a stock that has a great future for long-term investors. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.