YETI Holdings Inc. (NYSE: YETI) topped analysts’ estimates on revenue and earnings for the first quarter of 2019. Shares soared 9% in premarket hours on Thursday.
Net sales rose 15% year-over-year to $155.4 million. The sales results included a benefit of approx. 400 basis points from shipments late in the quarter that were expected to ship in the second quarter.
The company reported a net income of $2.2 million, or $0.03 per share, compared to a net loss of $3.3 million, or $0.04 per share, in the prior-year quarter. Adjusted net income was $6.6 million, or $0.08 per share.
Related: Yeti Holdings Q1 2019 Earnings Conference Call
Net sales in the Direct-to-consumer (DTC) channel jumped 28% to $61.7 million, driven by strong performance in the Drinkware category. In the Wholesale channel, net sales increased 8% to $93.6 million, primarily driven by Coolers & Equipment.
Drinkware net sales climbed 20% to $91 million, helped by the expansion of product offerings. Net sales in Coolers & Equipment grew 11% to $59.7 million, mainly driven by color updates across the hard and soft cooler lines, and the introduction of the CaminoTM Carryall bag to the wholesale channel.
Related: YETI Holdings Q4 2018 Earnings Report
Yeti updated its earnings outlook for the full year of 2019. GAAP EPS is now expected to be $0.87 to $0.90, reflecting 25% and 31% growth. Adjusted EPS is now expected to be $1.02 to $1.06, reflecting 13-17% growth.
The sales outlook remains unchanged and net sales for the year are expected to increase 11.5-13% compared to 2018, with growth across both channels and led by the DTC channel.