YETI Holdings ($YETI@US), which trades on the New York Stock Exchange as YETI, reported third-quarter FY21 sales growth of 23% year-on-year, to $362.64 million, beating the analyst consensus of $356.74 million. Net sales from the direct-to-consumer channel increased 31% year over year, the wholesale channel rose 15%, drinkware sales gained 24%, and coolers and equipment rose 20%. Gross profit increased 19% year-over-year to $207 million, and the margin compressed 200 basis points to 57.1%. The operating margin contracted 480 basis points to 19%, and operating income for the quarter fell 2% to $68.7 million. Selling, general and administrative expenses increased 33% to $138.3 million. Adjusted earnings per share of $0.64 beat the analyst consensus of $0.59. The company held $259.3 million in cash and equivalents as of Oct. 2, 2021. Net cash provided by operating activities for the 9 months amounted to $73.2 million versus $239.09 million last year. "While we are not immune to the confluence of supply chain disruptions and cost pressures that are pervasive in the market, our team's ongoing execution has supported our ability to once again raise both our top and bottom line outlooks for the year," said CEO Matt Reintjes. YETI raised FY21 sales guidance to between 28% to 29% from the prior outlook of 26% to 28%. The company also raised the FY21 adjusted EPS outlook to between $2.51 and $2.53, exceeding the consensus of $2.48. CFO Paul Carbone expressed confidence in the future, saying “the consumer demand is there.” Yeti has a 52-week high of $108.82 and a 52-week low of $53.84.
