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.
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.
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.
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.