YETI Lowers FY22 Forecast Despite Q2 Revenue Growth

YETI’s stock price was down almost 20% in early trading Thursday (Aug. 4) after the company reduced its fiscal 2022 forecast, despite seeing revenue growth in the 15% to 17% range in the three months ending July 2.

The company’s sales were up 17% year over year to $420 million for the period, according to the company press release. Direct-to-consumer (D2C) sales grew 14% to almost $225 million.

“We believe this performance continues to demonstrate the incredible resiliency and vitality of the brand as well as the durability of demand for YETI,” said YETI President and CEO Matt Reintjes in the release.

YETI’s sales “were slightly below our expectations,” he said in the release, pointing to weaker digital traffic and lower customer acquisition trends than in recent years.

“As we continue to navigate this dynamic environment, we are increasingly focused on several factors that are foundational to drive near-term execution as well as to support durable, long-term growth,” said Reintjes in the release. “This includes an unwavering focus on brand expansion across our diverse multi-channel distribution points, prioritizing and sustaining investments in marketing, people and innovation, and maintaining high customer value.”

In May, YETI said during its Q1 earnings report that it will continue to focus on expanding digital and in-person branding opportunities and its redesigned eCommerce platform.

Read more: YETI Sees Increased Demand After eCommerce Pivot

YETI’s Q1 sales for the three months ending April 2 increased 19% year over year to $293.6 million. That was highlighted by a 24% hike in drinkware sales to $184 million — led by new colors, sizes and a push for customization — and a 23% growth in D2C sales to $156 million.

Wholesale channel sales rose 14% to $137.7 million, driven by coolers, equipment and drinkware sales. Coolers and equipment sales increased 10% to $103 million, with bags, outdoor living products, hard coolers and cargo leading the growth.

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