Cooler manufacturer Yeti Holdings’ (NYSE: YETI) third quarter 2019 earnings results exceeded the market’s expectations. The company also lifted its fiscal year 2019 outlook. Yeti’s adjusted earnings per share jumped 24% to $0.30 in the third quarter of 2019 compared with the consensus view of $0.26. Net sales increased 17% year-over-year to $229.1 million versus the analysts’ target of $222.09 million. YETI stock was trading up about 4% in the pre-market hours.
GAAP earnings increased 20% to $0.25 per share compared to $0.21 per share in the prior year quarter.
Channel-wise, sales in the direct-to-consumer (DTC) jumped 31% in the quarter ended September 28, 2019, while wholesale channel registered a 9% growth in the sale. On product basis, drinkware sales increased 21% in the third quarter, driven by the continued expansion of the company’s product offerings. Coolers & Equipment sales grew 13%, driven by strong performance in soft coolers and outdoor living.
Based on the strong Q3 performance, Yeti upped its earnings and sales outlook for fiscal 2019. Adjusted EPS is now expected to be between $1.12 and $1.14, reflecting 23% to 26% growth versus the previous outlook of $1.07 and $1.09, reflecting 18% to 21% growth.
Yeti now expects FY19 GAAP EPS to be between $0.90 and $0.92 compared to the prior outlook of $0.88 to $0.90. Sales are now estimated to increase between 14.5% and 15.0% compared to 2018 versus the prior growth rate of 13.5% to 14.0%.
“Third quarter results were powered by a strong new product lineup and expanding gross margins – both powerful indicators of brand health and momentum. Supported by our four strategic growth drivers, we are increasing our full year outlook and are set up for a strong finish to 2019,” said CEO Matt Reintjes.
Yeti’s shares, which ended up 3.21% at $34.71 yesterday, rallied 134% so far this year and 127% from this time last year.