YETI Holdings Inc. has made a significant upward revision to its full-year earnings and sales growth outlook following robust second-quarter results that exceeded expectations. The outdoor products manufacturer reported that its adjusted net income per share for 2024 is now projected to range between $2.61 and $2.65.
This is a notable increase from the previous guidance of $2.49 to $2.62. Additionally, the company is anticipating an adjusted sales increase of 8% to 10%, surpassing its earlier estimate of 7% to 9%. In a statement, Chief Executive Officer Matt Reintjes expressed optimism regarding the company's outlook: "Supported by our execution in the front half of the year, we are increasing both our top line and bottom line outlooks.
This reflects our strong second-quarter results and continued confidence in our ability to deliver the second half of the year despite an uncertain macro environment." Investors responded positively to the news, driving shares of YETI, known for its high-quality coolers and thermoses, up by 13% during trading on Thursday. The outlook for adjusted operating income as a percentage of adjusted sales stands at approximately 16.5% for 2024, an improvement from the previously estimated range of 16% to 16.5%.
The company has adjusted its capital expenditure projections to between $50 million and $60 million, a decrease from the previous estimate of $60 million. For the three months ending on June 29, YETI reported a revenue increase to $463.5 million, compared to $402.6 million for the same period last year.
This figure also exceeded the average analyst estimate of $452.4 million, as compiled by Capital IQ. The direct-to-consumer channel experienced an 11% growth, generating $250.4 million in sales, significantly boosted by innovations in both the drinkware and cooler categories. Furthermore, wholesale revenue witnessed a remarkable 21% increase, reaching $213.1 million. Reintjes pointed out, "Supported by a strong lineup of new innovation, we were well positioned to capitalize on cooler demand, which we saw steadily build throughout the quarter." The adjusted earnings per share climbed to $0.70, up from $0.57 last year, thereby surpassing market expectations that had forecasted $0.63.
YETI's gross margin expanded by 360 basis points to reach 57%, largely attributed to reduced inbound freight and product costs. In terms of future growth strategies, Reintjes mentioned, "From an execution standpoint, we are building the foundation needed to support our future growth on a global basis, including making progress towards broadening our global supply footprint." As a consequence of these impressive results and heightened expectations, YETI's share price stood at $41.40, reflecting a change of +4.37 and a percentage change of +11.79.
This growth trajectory highlights YETI's resilience and strategic positioning in the marketplace as it continues to navigate an unpredictable economic landscape..