YETI's Q4 2024 Earnings: A Recipe for Success

As the calendar turned to 2025, YETI Holdings, Inc. (NYSE: YETI) delivered a strong performance in the fourth quarter of 2024, capping off an impressive year marked by growth, innovation, and strategic expansion. The company's earnings call on February 13, 2025, highlighted the key drivers behind YETI's success and provided insights into its future prospects.



YETI's Q4 2024 financial performance was robust, with net sales increasing 5% to $546.5 million and adjusted net sales up 7%. The company's adjusted EPS grew 11% to $1.00, reflecting its strong operational execution and brand strength. Notably, YETI's international sales surged 27% in the quarter, contributing significantly to its overall growth.

The company's success can be attributed to several strategic priorities:

1. Brand Strength: YETI's consumer and owner studies consistently show strong passion for the brand, supporting its product expansion strategy. In 2024, the company participated in over 200 consumer events around the world, ended the year with roughly 200 global ambassadors, and secured meaningful partnerships. These efforts have grown the brand's addressable market across key consumer groups and unlocked tremendous white space in international markets.
2. Product Innovation: YETI delivered impactful additions in drinkware, food, coolers, and bags, plus expanded its color options in 2024. The company's innovation and product diversification drove demand across YETI in Q4, with particular strength in the Coolers & Equipment category, specifically in hard coolers and bags. YETI's acquisition of Mystery Ranch and Butter Pat enabled the accelerated launch of YETI cast iron cookware and the limited release of the Bozeman backpack in 2024. Additionally, the company acquired capabilities, technology, and IP for a unique powered cooler system, further enhancing its product portfolio.
3. Global Expansion: YETI's global brand resonance has unlocked significant white space in international markets, contributing to the company's growth. In Q4 2024, international net sales surged 27% to $108.9 million, with full-year international sales up 31%. The company's expansion strategy appears well-balanced, maintaining U.S. market penetration while aggressively pursuing international opportunities.

YETI's capital allocation strategy has also played a crucial role in driving long-term growth and value creation for shareholders. In 2024, the company announced a $200 million share buyback program, representing roughly 6% of outstanding shares. This move demonstrates YETI's commitment to returning capital to shareholders and enhancing shareholder value. Additionally, YETI's strategic acquisitions, such as Mystery Ranch and Butter Pat, have accelerated innovation and expanded the company's product portfolio, further driving long-term growth.

In conclusion, YETI's strong performance in Q4 2024 and throughout the year is a testament to the company's strategic focus on brand, product innovation, and global expansion. By effectively executing these priorities, YETI has achieved robust top and bottom-line growth, delivered excellent adjusted gross margin and adjusted operating margin expansion, and maintained a robust cash position. As the company continues to navigate a challenging market environment, its targeted capital allocation strategy, centered around investment in the business, accelerating innovation, and building upon its share repurchase cadence, positions YETI for continued success in the future.