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Yeti posted muted fourth-quarter and full-year 2023 earnings, as it continues to recover from a product recall that cost the company more than $170 million over 2022 and 2023.
Its EPS and revenue results for Q4 2023 missed expectations. For the full year, its adjusted net sales were up 3% over 2022. Its drinkware category sales rose 8% for the year, topping $1 billion. But its cooler and equipment sales were down 2%, partly because it stopped selling the recalled products.
Yeti did show some signs of rebounding from the recalls: Its gross margin reached an “all-time high” of more than 60% in Q4, president and CEO Matt Reintjes said, stating the company ended 2023 with its “strongest balance sheet to-date.”
The cup that must not be named: Stanley has dethroned Yeti as the It Cup, and Yeti may still be bitter about it. No one uttered the “S” word during the most recent earnings call, and even an analyst asking a question only made reference to “the competitor.”
But, as Reintjes observed, “Competition brings awareness to a category and creates market opportunity.” This may have been true for Yeti, as its drinkware sales for the quarter were up 12% over Q4 2022. Yeti began offering a “broader range of color options” for its cup this year, CFO Michael McMullen said, and introduced a 42-oz version of its Rambler cup in November, perhaps in an attempt to steal some thunder from . . . you know who.