YETI Holdings Inc. (YETI) reported better-than-expected revenue and earnings for the fourth quarter of 2018, sending the stock soaring over 10% in premarket hours on Thursday.
Net sales grew 19% year-over-year to $241.2 million. GAAP net income rose 533% to $25.2 million, or $0.30 per share, compared to last year. Adjusted net income improved 379% to $32 million, or $0.38 per share.
During the quarter, net sales in the direct-to-consumer (DTC) channel rose 45% to $110.5 million, helped by strong performance in both product categories, particularly Drinkware. Wholesale channel net sales rose 4% to $130.7 million, primarily driven by Coolers & Equipment.
Drinkware net sales increased 24% to $143.5 million, mainly due to the expansion in product offerings, new accessories and the introduction of new Drinkware colorways. In Coolers & Equipment, net sales grew 10% to $91.2 million, mainly due to the expansion of the hard cooler and soft cooler products, as well as the introduction of new products.
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At the end of the year, inventory stood at $145.4 million, down 17% from last year, driven by better demand forecasting and inventory control across all product categories, and sales above plan.
For fiscal year 2019, YETI expects net sales to increase 11.5% to 13% versus 2018 with growth across both channels led by the DTC channel. GAAP EPS is expected to grow 22-29% to $0.84 to $0.89 while adjusted EPS is expected to grow 10-15% to $0.99 to $1.04.