Shares of outdoor products company Yeti Holdings (YETI 1.60%) fell on Thursday after the company reported financial results for the fourth quarter of 2023 that were below Wall Street's expectations. Moreover, management wasn't as upbeat about 2024 as investors would have hoped. As a result, Yeti stock was down 15% as of 11:15 a.m. ET.

A slow 2023 for Yeti

Yeti makes premium coolers, drinkware, and other products. As consumers' budgets become more stretched due to inflation, premium brands such as Yeti are experiencing headwinds for sales. Adjusting for a recall last year, the company's full-year net sales were only up 3% year over year in 2023.

These sales for Yeti were below expectations. Profits were below expectations as well. Diluted earnings per share (EPS) for the year were up 88% compared to 2022. But again, 2022 was negatively impacted by a recall. Adjusting for this and other items, non-GAAP EPS was down 5% year over year in 2023.

At yesterday's closing price, Yeti stock traded at a price-to-earnings (P/E) valuation of about 25, which is expensive for a consumer discretionary stock with little growth. This partly explains why investors might have sold their Yeti positions today.

A slow 2024 ahead?

Yeti kicked off 2024 with a pair of acquisitions for $48.5 million, expanding its product lineup into backpacks and cast iron cookware. Look for these new products to contribute to the company's top line. But in 2024, management only expects 7% to 9% adjusted sales growth, which is less than what investors have come to expect from Yeti.

That said, Yeti is in a great financial position with $439 million in cash and only $82 million in debt. It's also profitable. This gives it financial flexibility to explore expansion via acquisitions and allows it to give back to shareholders -- with its 2023 results, management announced a $300 million share repurchase program.

I see good reason for Yeti shareholders to keep holding for the long term. But I can also appreciate if investors want to wait for macroeconomic improvement before buying shares today.