YETI Holdings, Inc.
For the period ended Mar 29, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed May 8, 2025
YETI$44.97-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-11-07.
0001670592-24-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-05-08.
0001670592-25-000024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 77 current paragraphs.
36 unchanged; 28 reworded; 12 added; 51 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Our business is exposed to and impacted by macroeconomic factors, including but not limited to uncertainty surrounding inflationary pressures, consumer confidence and purchasing behaviors, foreign currency exchange rate fluctuations, and government actions and policies, including changes in interest rates, tax rates, and tariffs. We experienced the continuation of a challenging macroeconomic environment through the first quarter of 2025. If a number of macroeconomic factors continue or worsen, we expect our business and results of operations to be adversely impacted in 2025. We intend to continue to carefully monitor macroeconomic developments and manage our business accordingly.
Current report
The current levels of tariffs on imports from China significantly raise the cost of certain of our products, particularly in our Drinkware category. As such, we expect current tariff rates to have a material negative impact on our gross margins and results of operations for 2025. We are pursuing strategic options to mitigate such impact. Importantly, we have accelerated our strategy to diversify our Drinkware manufacturing to additional countries beyond China and now expect a large majority of such manufacturing capacity to be outside of China by the end of 2025. However, a significant percentage of our Drinkware manufacturing capacity currently remains in China. The other strategic options to further mitigate tariff impacts include management of operating expenses, working capital and cash, negotiations with suppliers, evaluating pricing strategies, leveraging tariff exemptions where possible, and pursuing other supply chain optimization activities. While we pursue these mitigation strategies, we may not be able to continue sourcing certain products from China and in some cases we may intend to strategically decrease the amount of products that we source from China. As a result, we expect inventory constraints that will likely adversely impact sales in 2025.
Current report
Given the uncertainty regarding the scope and duration of the current or future tariffs, as well as the potential for additional trade actions by the United States or other countries, the ultimate impact on our business and results of operations is uncertain. Nevertheless, we believe that our ongoing mitigation strategies, together with our strong cash position, inventory on hand and availability under our Revolving Credit Facility, will allow us to navigate this uncertain period and provide sufficient liquidity to fund our operations for at least the next twelve months and foreseeable future.
Current report
•Wholesale channel net sales increased $1.3 million, or 1%, to $154.9 million, compared to $153.6 million in the same period last year, primarily due to growth in Coolers & Equipment.
Current report
•Drinkware net sales decreased by $9.0 million, or 4%, to $205.6 million, compared to $214.6 million in the prior year quarter. Drinkware performance was driven by growth in our international regions that was more than offset by a decline in our U.S. region. Drinkware performance was also impacted by a challenging compare of 13% growth in the prior year quarter, as well as the strategic shift to prioritize supply chain diversification over new innovation during the current year quarter.
Current report
Gross profit increased $6.9 million, or 4%, to $201.7 million, compared to $194.8 million in the prior year quarter. Gross margin rate increased 30 basis points to 57.4% from 57.1% in the prior year quarter, primarily due to the following factors:
Current report
•a decrease in the mix of Drinkware net sales, which unfavorably impacted gross margin by 100 basis points; and
Current report
•the unfavorable impact of foreign currency exchange rates, which unfavorably impacted gross margin by 40 basis points.
Current report
•an increase in general and administrative expenses of $6.1 million (increasing SG&A as a percent of sales by 160 basis points) mainly due to higher advisory and legal fees, technology expenses, and occupancy costs, partially offset by the absence of asset impairments;
Current report
•an increase in depreciation and amortization expense of $1.0 million (increasing SG&A as a percent of sales by 20 basis points); and
Current report
•an increase in marketing and advertising expenses of $0.7 million (no impact on SG&A as a percent of sales).
Current report
During the first quarter of 2025, our Board of Directors approved a $350.0 million increase to the Share Repurchase Program authorization, excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. As of March 29, 2025, $450.0 million remained available under the Share Repurchase Program.
Removed paragraphs (51)
Previous report
During the second quarter of 2024, we continued the expansion of our drinkware offerings with the launch of our new Rambler French Press in two sizes, the limited release of our Flask and Shot Glasses, and new seasonal colorways. We also expanded our hard cooler offerings with two new sizes within our Roadie cooler family.
Previous report
During the third quarter of 2024, we expanded our drinkware category with the launch of our new Cast Iron Skillet in three sizes and our new Rambler Pitcher in two sizes as well as the full release of our Flask and Shot Glasses. We also introduced new seasonal colorways.
Previous report
Acquisitions
Previous report
During the first quarter of 2024, we completed the acquisitions of Mystery Ranch, LLC (“Mystery Ranch”), a designer and manufacturer of durable load-bearing backpacks, bags, and pack accessories, and Butter Pat Industries, LLC (“Butter Pat”), a designer and manufacturer of cast iron cookware. We are integrating Mystery Ranch and Butter Pat operations and products into our business to further expand our capabilities in the bags and cookware categories. See Note 2-Acquisitions of the Notes to Consolidated Financial Statements included herein for additional information about these acquisitions.
Previous report
There remains significant uncertainty regarding how macroeconomic conditions, including sustained high levels of inflation and higher interest rates, will impact consumer demand. While some of these conditions have negatively impacted consumer discretionary spending behavior, we continue to see strong overall demand for our products. We have, however, seen instances of consumer sensitivity to higher price points, which has negatively impacted our financial results.
Previous report
The recent disruptions of container shipping traffic through the Red Sea and surrounding waterways have continued to negatively affect transit times and freight costs for goods manufactured in Asia and destined to Europe, and to a smaller extent the Americas. In addition to these ongoing disruptions, freight rates have remained elevated industry-wide since their increase in the second quarter of 2024. Although such effects have not materially impacted our business to date, the continuation or worsening of these conditions may materially impact our operations and financial results through the remainder of 2024.
Previous report
A worsening of any of the macroeconomic trends or uncertainties discussed herein may adversely impact our business, operations, and financial results in the future. We will continue to monitor and, if necessary, strive to mitigate the effects of the macroeconomic environment on our business.
Previous report
Product Recall Reserves
Previous report
In January 2023, we notified the Consumer Products Safety Commission (“CPSC”) of a potential safety concern regarding the magnet-lined closures of our Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case (the “affected products”) and initiated a global stop sale of the affected products. In February 2023, we proposed a voluntary recall of the affected products to the CPSC and other relevant global regulatory authorities. Accordingly, we established reserves for unsalable inventory on-hand, as well as expected future returns, the estimated cost of recall remedies for consumers with affected products, and other recall-related costs as of December 31, 2022.
Previous report
In March 2023, we announced separate, voluntary recalls of the affected products in collaboration with the CPSC. During the second quarter of 2023, we began processing recall returns and claims and based on such experience and trends, we reevaluated our assumptions and adjusted our estimated recall expense reserve. As a result, we updated our recall reserve assumptions, which increased the estimated recall expense reserve by $8.5 million during the second quarter of 2023.
Previous report
For the three months ended September 30, 2023, we recorded an immaterial reduction to net sales primarily related to higher recall-related returns, and recorded a benefit in cost of goods sold of $0.8 million, primarily related to lower estimated recall-related costs. For the nine months ended September 30, 2023, we recorded a $24.5 million reduction to net sales primarily related to higher estimated future recall-related gift card elections; recorded a benefit in cost of goods sold of $7.1 million, primarily related to lower estimated costs of future product replacement remedy elections and logistics costs and lower recall-related costs; and recorded a benefit in SG&A expenses primarily related to lower estimated other recall-related costs of $10.5 million. The total impact to operating income related to the recalls was a favorable impact of $0.8 million and an unfavorable impact of $6.8 million for the three and nine months ended September 30, 2023, respectively.
Previous report
In addition, our 2023 sales were materially adversely impacted by the stop sales of the affected products. In the fourth quarter of 2023, we introduced our redesigned and improved versions of the affected products.
Previous report
During 2024, we have not recorded any adjustments to our recall reserves. As a result, the product recall had no impact to our consolidated financial results for the three and nine months ended September 28, 2024.
Previous report
The ultimate impact from the recalls may differ materially from our estimates, and may harm our business, financial condition and results of operation.
Previous report
•DTC channel net sales increased $21.3 million, or 8%, to $280.8 million, compared to $259.5 million in the prior year quarter, due to growth in both Coolers & Equipment and Drinkware. DTC channel mix was 59% in the third quarter of 2024 compared to 60% in the third quarter of 2023.
Previous report
•Wholesale channel net sales increased $23.6 million, or 14%, to $197.6 million, compared to $174.1 million in the same period last year, due to growth in both Drinkware and Coolers & Equipment.
Previous report
•Drinkware net sales increased by $21.7 million, or 9%, to $275.0 million, compared to $253.3 million in the prior year quarter, driven by the continued expansion and innovation of our Drinkware product offerings and new seasonal colorways.
Previous report
Gross profit increased $26.5 million, or 11%, to $277.7 million, compared to $251.3 million in the prior year quarter. Gross profit for the three months ended September 30, 2023 included a favorable impact of $0.8 million related to lower than anticipated recall-related costs. Gross margin rate was flat at 58.0% compared to the prior year quarter, primarily due to the following factors:
Previous report
•lower inbound freight rates, which favorably impacted gross margin by 160 basis points; and
Previous report
•higher customization costs, which unfavorably impacted gross margin by 40 basis points;
Previous report
•supplier transition costs and higher material costs related to product transitions, which unfavorably impacted gross margin by 40 basis points;
Previous report
•strategic price decreases on certain hard cooler products implemented during the first quarter of 2024, which unfavorably impacted gross margin by 30 basis points;
Previous report
•the absence in the current year quarter of a benefit in the prior year quarter associated with our voluntary product recalls, which drove an unfavorable change in gross margin of 20 basis points compared to the prior year quarter; and
Previous report
•other impacts, which unfavorably impacted gross margin by 90 basis points.
Previous report
•an increase in non-variable expenses of $17.9 million (increasing SG&A as a percent of net sales by 110 basis points) comprised of higher employee costs, mainly due to investments in headcount to support future growth, and investments in marketing expenses, partially offset by asset impairments in the prior year.
Previous report
Nine Months Ended September 28, 2024 Compared to September 30, 2023
Previous report
Net Sales
Previous report
Net sales increased $144.4 million, or 13%, to $1,283.3 million for the nine months ended September 28, 2024, compared to $1,138.9 million for the nine months ended September 30, 2023. Net sales for the nine months ended September 30, 2023 included an unfavorable impact of $24.5 million related to a recall reserve adjustment. Excluding this recall-related reserve impact from the first nine months of 2023, net sales increased $119.9 million, or 10%, due to growth in both our Wholesale and DTC channels. Net sales for the nine months ended September 28, 2024 and September 30, 2023 include $7.1 million and $18.8 million, respectively, of sales related to gift card redemptions in connection with recall remedies.
Previous report
Net sales in our two channels were as follows:
Previous report
•Wholesale channel net sales increased $78.3 million, or 16%, to $564.3 million, compared to $486.1 million in the same period last year, due to growth in both Drinkware and Coolers & Equipment. Wholesale channel net sales included an unfavorable impact of $16.4 million in the first nine months of 2023 related to a recall reserve adjustment.
Previous report
•Drinkware net sales increased by $59.1 million, or 9%, to $736.1 million, compared to $677.0 million in the prior year period, driven by the continued expansion and innovation of our Drinkware product offerings and new seasonal colorways.
Previous report
•Coolers & Equipment net sales increased by $85.9 million, or 20%, to $518.4 million, compared to $432.5 million in the same period last year driven by strong performance in bags and soft coolers. Coolers & Equipment net sales included an unfavorable impact of $24.5 million in the first nine months of 2023 related to a recall reserve adjustment.
Previous report
Net sales in the U.S. increased $88.3 million, or 9%, to $1,052.9 million for the nine months ended September 28, 2024. Net sales in international locations increased $56.1 million or 32%, to $230.5 million for the nine months ended September 28, 2024. For the nine months ended September 30, 2023, net sales in the U.S. and international locations included an unfavorable impact of $23.9 million and $0.6 million, respectively, related to a recall reserve adjustment. Net sales in international locations represented 18% and 15% of total net sales in the first nine months of 2024 and 2023, respectively.
Previous report
Gross Profit
Previous report
Gross profit increased $108.9 million, or 17%, to $736.8 million compared to $628.0 million in the prior year period. Gross profit for the nine months ended September 30, 2023 included an unfavorable impact of $17.4 million related to a recall reserve adjustment. Gross margin rate increased 230 basis points to 57.4% from 55.1% in the same period last year. The increase in gross margin was primarily driven by:
Previous report
•lower inbound freight rates, which favorably impacted gross margin by 280 basis points;
Previous report
•the absence in the current year period of an unfavorable reserve adjustment in the prior year period associated with our voluntary product recalls, which drove a favorable change in gross margin of 40 basis points compared to the prior year period;
Previous report
These were partially offset by:
Previous report
•strategic price decreases on certain hard cooler products implemented during the first quarter of 2024, which unfavorably impacted gross margin by 40 basis points;
Previous report
•higher customization costs, which unfavorably impacted gross margin by 40 basis points; and
Showing the first 40 of 51 passages. Open the source sections for the rest.
Reworded paragraphs (28)
Previous wording
We distribute our products through a balanced omni-channel platform, consisting of our wholesale and direct-to-consumer (“DTC”) channels. In our wholesale channel, we sell our products through select national and regional accounts and an assemblage of independent retail partners throughout the United States, Canada, Australia, New Zealand, Europe, and Japan, among others. We carefully evaluate and select retail partners that have an image and approach that are consistent with our premium brand and pricing. Our domestic national and regional specialty retailers include Dick’s Sporting Goods, REI, Academy Sports + Outdoors, Bass Pro Shops, Ace Hardware, Scheels, and Tractor Supply Company. We sell our products in our DTC channel to customers through our websites and YETI Authorized on the Amazon Marketplace, as well as in our retail stores. Additionally, we offer customized products with licensed trademarks and original artwork through our websites and our corporate sales program. Our corporate sales program offers customized products to corporate customers for a wide-range of events and activities, and in certain instances may also offer products to re-sell. In the first quarter of 2024, we acquired Mystery Ranch, LLC, which is a designer and manufacturer of durable load-bearing backpacks, bags, and pack accessories.
Current wording
We distribute our products through a balanced omni-channel platform, consisting of our wholesale and direct-to-consumer (“DTC”) channels. In our wholesale channel, we sell our products through select national and regional accounts and an assemblage of independent retail partners throughout the United States, Canada, Australia, New Zealand, Europe, and Japan, among others. We carefully evaluate and select retail partners that have an image and approach that are consistent with our premium brand and pricing. Our domestic national and regional specialty retailers include Dick’s Sporting Goods, REI, Academy Sports + Outdoors, Bass Pro Shops, Ace Hardware, Scheels, and Tractor Supply Company. We sell our products in our DTC channel to customers through our websites and YETI Authorized on the Amazon Marketplace, as well as in our retail stores. Additionally, we offer customized products with licensed marks and original artwork primarily through our DTC channel, including our corporate sales channel, on our websites, and at select retail stores. Our corporate sales program offers customized products to corporate customers for a wide-range of events and activities and in certain instances may also offer products to re-sell.
Previous wording
During the first quarter of 2024, we expanded our drinkware offerings with the launch of a new stackable 16 oz. Rambler cup, and introduced new seasonal colorways.
Current wording
During the first quarter of 2025, we expanded our bag offerings with the launch of our new Ranchero pack in two sizes, and introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.
Previous wording
Selling, general, and administrative expenses. Selling, general, and administrative (“SG&A”) expenses consist primarily of marketing costs, employee compensation and benefits costs, costs of our outsourced warehousing and logistics operations, costs of operating on third-party DTC marketplaces, professional fees and services, non-cash stock-based compensation, cost of product shipment to our customers, depreciation and amortization expense, and general corporate infrastructure expenses. Our variable expenses, including outbound freight, online marketplace fees, third-party logistics fees, and credit card processing fees, will vary as they are dependent on our sales volume and our channel mix. Our DTC channel variable SG&A costs are generally higher as a percentage of net sales than our wholesale channel distribution costs.
Current wording
Selling, general, and administrative expenses. Selling, general, and administrative (“SG&A”) expenses consist primarily of marketing costs, employee compensation and benefits costs, including non-cash stock-based compensation, distribution and fulfillment costs, depreciation and amortization expense, and general and administrative expenses. Our distribution and fulfillment costs include costs of our third-party warehousing and logistics operations, outbound freight costs, costs of operating on third-party DTC marketplaces, and credit card processing fees. Certain distribution and fulfillment costs will vary as they are dependent on our sales volume and our channel mix. Our DTC channel variable SG&A costs are generally higher as a percentage of net sales than our wholesale channel distribution costs.
Previous wording
Fiscal Year. We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending December 28, 2024 (“2024”) is a 52-week period. The first quarter of our fiscal year 2024 ended on March 30, 2024, the second quarter ended on June 29, 2024, and the third quarter ended on September 28, 2024. Our fiscal year ended December 30, 2023 (“2023”) was also a 52-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three and nine months ended September 28, 2024 and September 30, 2023.
Current wording
Fiscal Year. We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending January 3, 2026 (“2025”) is a 53-week period. The first quarter of our fiscal year 2025 ended on March 29, 2025, the second quarter ends on June 28, 2025, and the third quarter ends on September 27, 2025. Our fiscal year ended December 28, 2024 (“2024”) was a 52-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three months ended March 29, 2025 and March 30, 2024.
Previous wording
The discussion below should be read in conjunction with the following table and our unaudited condensed consolidated financial statements and related notes contained elsewhere in this Report. The following table sets forth selected statement of operations data, and their corresponding percentage of net sales, for the periods indicated (dollars in thousands):
Current wording
The discussion below should be read in conjunction with the following table and our unaudited condensed consolidated financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q. The following table sets forth selected statement of operations data, and their corresponding percentage of net sales, for the periods indicated (dollars in thousands):
Previous wording
Net sales increased $44.9 million, or 10%, to $478.4 million for the three months ended September 28, 2024, compared to $433.6 million for the three months ended September 30, 2023. Net sales for the third quarter of 2024 and 2023 also include $2.7 million and $6.3 million, respectively, of sales related to gift card redemptions in connection with recall remedies.
Current wording
Net sales increased $9.7 million, or 3%, to $351.1 million for the three months ended March 29, 2025, compared to $341.4 million for the three months ended March 30, 2024. Net sales for the first quarter of 2024 and 2023 also include $0.9 million and $2.0 million, respectively, of sales related to gift card redemptions in connection with recall remedies.
Previous wording
•DTC channel net sales increased $66.2 million, or 10%, to $719.0 million, compared to $652.9 million in the prior year period, due to growth in both Coolers & Equipment and Drinkware. DTC channel net sales included an unfavorable impact of $8.1 million in the first nine months of 2023 related to a recall reserve adjustment. DTC channel mix was 56% in the first nine months of 2024 compared to 57% in the first nine months of 2023.
Current wording
•DTC channel net sales increased $8.4 million, or 4%, to $196.2 million, compared to $187.8 million in the prior year quarter, primarily due to growth in Coolers & Equipment. DTC channel mix was 56% in the first quarter of 2025, compared to 55% in the first quarter of 2024.
Previous wording
•Coolers & Equipment net sales increased by $21.0 million, or 12%, to $192.6 million, compared to $171.5 million in the same period last year, driven by strong performance in bags, hard coolers, and outdoor living products.
Current wording
•Coolers & Equipment net sales increased by $20.3 million, or 17%, to $140.2 million, compared to $119.9 million in the same period last year, due to growth in both our U.S. and international regions, driven by strong performance in bags and hard coolers.
Previous wording
Net sales in the U.S. increased $24.5 million, or 7%, to $390.2 million for the three months ended September 28, 2024. Net sales in international locations increased $20.4 million, or 30%, to $88.3 million for the three months ended September 28, 2024. Net sales in international locations represented 18% and 16% of total net sales in the third quarter of 2024 and 2023, respectively.
Current wording
Net sales in the U.S. decreased $4.5 million, or 2%, to $271.3 million for the three months ended March 29, 2025. Net sales in international locations increased $14.3 million, or 22%, to $79.9 million for the three months ended March 29, 2025. Net sales in international locations represented 23% and 19% of total net sales in the first quarter of 2024 and 2023, respectively.
Previous wording
•lower product costs, which favorably impacted gross margin by 110 basis points; and
Current wording
•lower product costs, which favorably impacted gross margin by 120 basis points; and
Previous wording
•the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which unfavorably impacted gross margin by 20 basis points;
Current wording
•the absence in the current year quarter of the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which favorably impacted gross margin by 50 basis points.
Previous wording
SG&A expenses increased $18.7 million, or 10%, to $208.1 million for the three months ended September 28, 2024, compared to $189.4 million for the three months ended September 30, 2023. As a percentage of net sales, SG&A expenses decreased 20 basis points to 43.5% for the three months ended September 28, 2024 from 43.7% for the three months ended September 30, 2023. The decrease in SG&A expenses was primarily driven by:
Current wording
SG&A expenses increased $11.1 million, or 7%, to $180.1 million for the three months ended March 29, 2025, compared to $169.0 million for the three months ended March 30, 2024. As a percentage of net sales, SG&A expenses increased 180 basis points to 51.3% from 49.5% in the prior year quarter. The increase in SG&A expenses was primarily driven by:
Previous wording
•an increase in non-variable expenses of $48.9 million (increasing SG&A as a percent of net sales by 40 basis points) comprised of higher employee costs, mainly due to investments in headcount to support future growth and non-cash stock-based compensation expense, investments in marketing expenses, higher information technology expenses, and asset impairments, partially offset by lower warehousing costs; and
Current wording
•an increase in employee compensation and benefits expenses of $5.0 million (increasing SG&A as a percent of sales by 100 basis points) mainly due to investments in headcount to support future growth and an increase in non-cash stock-based compensation expense;
Previous wording
•an increase in variable expenses of $0.8 million (decreasing SG&A as a percent of net sales by 130 basis points) primarily associated with higher net sales, and comprised of higher distribution costs including higher third-party logistics fees and online marketplace fees, partially offset by lower outbound freight; and
Current wording
The increases in SG&A expenses were partially offset by lower distribution and fulfillment expenses of $1.7 million (decreasing SG&A as a percent of sales by 100 basis points) mainly due to lower outbound freight, partially offset by higher online marketplace fees associated with higher net sales and third-party logistics fees.
Previous wording
Interest income, net was $0.4 million for the three months ended September 28, 2024. Interest expense, net was $0.3 million for the three months ended September 30, 2023. The change versus the prior year quarter was primarily due to an increase in interest income.
Current wording
Interest income, net was $0.3 million for the three months ended March 29, 2025. Interest income, net was $0.7 million for the three months ended March 30, 2024. The change versus the prior year quarter was primarily due to a decrease in interest income, partially offset by a decrease in interest expense.
Previous wording
Other income was $4.1 million for the three months ended September 28, 2024, compared to other expense of $4.0 million for the three months ended September 30, 2023. The change versus the prior year quarter was primarily due to foreign currency gains on intercompany balances for the three months ended September 28, 2024 versus foreign currency losses on intercompany balances for the three months ended September 30, 2023.
Current wording
Other income was $1.4 million for the three months ended March 29, 2025, compared to other expense of $4.1 million for the three months ended March 30, 2024. The change versus the prior year quarter was primarily due to foreign currency gains on intercompany balances for the three months ended March 29, 2025 versus foreign currency losses on intercompany balances for the three months ended March 30, 2024.
Previous wording
Income tax expense was $17.8 million for the three months ended September 28, 2024, compared to $14.9 million for the three months ended September 30, 2023. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate was 24% for the three months ended September 28, 2024, compared to 26% for the three months ended September 30, 2023. The decrease in the effective tax rate was primarily due to a discrete tax expense related to a change in the estimate for an uncertain tax position in the three months ended September 30, 2023.
Current wording
Income tax expense was $6.7 million for the three months ended March 29, 2025, compared to $6.5 million for the three months ended March 30, 2024. The increase in income tax expense was primarily due to higher income before income taxes. The effective tax rate was 29% for both of the three months ended March 29, 2025 and March 30, 2024.
Previous wording
Our cash requirements have principally been for working capital purposes, long-term debt repayments, and capital expenditures. We fund our working capital and our capital investments from cash flows from operating activities, cash on hand, and borrowings available under our revolving credit facility (the “Revolving Credit Facility”). Pursuant to our Share Repurchase Program described below, we may also use cash to repurchase shares of our common stock. We believe that our current operating performance, existing cash position, and borrowings available under our Revolving Credit Facility, will be sufficient to satisfy our liquidity needs and cash requirements over the next twelve months and foreseeable future.
Current wording
Our cash requirements have principally been for working capital purposes, long-term debt repayments, and capital expenditures. We fund our working capital and our capital investments from cash flows from operating activities, cash on hand, and borrowings available under our revolving credit facility (the “Revolving Credit Facility”). Pursuant to our Share Repurchase Program described below, we may also use cash to repurchase shares of our common stock. We believe that our current operating performance, operating plan, strong cash position, and borrowings available under our Revolving Credit Facility, will be sufficient to satisfy our liquidity needs and cash requirements for at least the next twelve months and foreseeable future.
Previous wording
As of September 28, 2024, we had a cash balance of $280.5 million, working capital (excluding cash) of $237.7 million, and $300.0 million of borrowings available under the Revolving Credit Facility.
Current wording
As of March 29, 2025, we had a cash balance of $259.0 million, working capital (excluding cash) of $210.9 million, and $300.0 million of borrowings available under the Revolving Credit Facility.
Previous wording
Our Credit Facility provides for a $300.0 million Revolving Credit Facility and an $84.4 million term loan (“Term Loan A”).
Current wording
Our Credit Facility provides for a $300.0 million Revolving Credit Facility and an $84.4 million term loan (the “Term Loan A”).
Previous wording
At September 28, 2024, we had $79.1 million principal amount of indebtedness outstanding under the Term Loan A under the Credit Facility and no outstanding borrowings under the Revolving Credit Facility. Borrowings under the Term Loan A and the Revolving Credit Facility bear interest at Term Secured Overnight Financing Rate (“SOFR”) or the Alternate Base Rate (each as defined in the Credit Agreement) plus an applicable rate ranging from 1.75% to 2.50% for Term SOFR-based loans and from 0.75% to 1.50% for Alternate Base Rate-based loans, depending upon our total Net Leverage Ratio (as defined in the Credit Agreement). Additionally, a commitment fee ranging from 0.200% to 0.300%, determined by reference to a pricing grid based on our net leverage ratio, is payable on the average daily unused amounts under the Revolving Credit Facility. The weighted-average interest rate for borrowings under Term Loan A was 7.10% during the three months ended September 28, 2024.
Current wording
At March 29, 2025, we had $77.0 million principal amount of indebtedness outstanding under the Term Loan A under the Credit Facility and no outstanding borrowings under the Revolving Credit Facility. The weighted-average interest rate for borrowings under the Term Loan A was 6.20% during the three months ended March 29, 2025.
Previous wording
On February 1, 2024, our Board of Directors authorized the repurchase of up to $300 million (exclusive of fees and commissions) of YETI’s common stock (the “Share Repurchase Program”). The common stock may be repurchased from time to time at prevailing prices in the open market, through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. Repurchases under the share repurchase program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Exchange Act. The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital allocation needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of our common stock, and such repurchases may be suspended or discontinued at any time. As of September 28, 2024, $200 million remained available under the Share Repurchase Program.
Current wording
On February 1, 2024, our Board of Directors authorized the repurchase of up to $300.0 million of YETI’s common stock (the “Share Repurchase Program”), excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. The common stock may be repurchased from time to time at prevailing prices in the open market, through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. Repurchases under the share repurchase program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital allocation needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of our common stock, and such repurchases may be suspended or discontinued at any time.
Previous wording
As part of the Share Repurchase Program, on February 27, 2024, we entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Goldman Sachs & Co. LLC (“Goldman Sachs”) to repurchase $100 million of YETI’s common stock. Pursuant to the ASR Agreement, we made a payment of $100 million to Goldman Sachs and received an initial share delivery of 1,998,501 shares of our common stock. We received a final delivery of an additional 642,674 shares on April 25, 2024. The ASR resulted in the total repurchase of 2,641,175 shares. See Note 9-Stockholders’ Equity of the Unaudited Condensed Consolidated Financial Statements for additional information about the Share Repurchase Program.
Current wording
As part of the Share Repurchase Program, on February 27, 2024, we entered into an accelerated share repurchase agreement (the “February ASR Agreement”) with Goldman Sachs & Co. LLC (“Goldman Sachs”) to repurchase $100.0 million of YETI’s common stock. Pursuant to the February ASR Agreement, we made a payment of $100.0 million to Goldman Sachs and received an initial delivery of 1,998,501 shares of our common stock. We received a final delivery of an additional 642,674 shares on April 25, 2024. The February ASR Agreement resulted in the total repurchase of 2,641,175 shares.
Previous wording
Other than as disclosed above, there have been no material changes in our material cash requirements for contractual and other obligations, including capital expenditures, as disclosed under “Material Cash Requirements” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 30, 2023 filed with the SEC.
Current wording
Other than as disclosed above, there have been no material changes in our material cash requirements for contractual and other obligations, including capital expenditures, as disclosed under “Material Cash Requirements” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 28, 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”).
Previous wording
Cash flows related to operating activities are dependent on net income, non-cash adjustments to net income, and changes in working capital. The decrease in cash provided by operating activities during the nine months ended September 28, 2024 compared to cash provided by operating activities during the nine months ended September 30, 2023 is primarily due to an increase in cash used for working capital, partially offset by an increase in net income, adjusted for non-cash items for the periods compared. The increase in cash used for working capital was primarily due to an increase in inventory.
Current wording
Cash flows related to operating activities are dependent on net income, non-cash adjustments to net income, and changes in working capital. The decrease in cash used in operating activities during the three months ended March 29, 2025 compared to cash used in operating activities during the three months ended March 30, 2024 is primarily due to a decrease in cash used in working capital driven by higher accounts payable and accrued expenses balances, partially offset by lower taxes payables balances in the current year period.
Previous wording
The increase in cash used in investing activities during the nine months ended September 28, 2024 was primarily related to the acquisition of Mystery Ranch and increased purchases of property and equipment.
Current wording
The decrease in cash used in investing activities during the three months ended March 29, 2025 was primarily due to the acquisition of Mystery Ranch, LLC and Butter Pat Industries, LLC in the prior year period.
Previous wording
The increase in cash used by financing activities during the nine months ended September 28, 2024 was primarily driven by repurchases of common stock in connection with our $100 million ASR Agreement.
Current wording
The decrease in cash used by financing activities during the three months ended March 29, 2025 was primarily due to repurchases of common stock in the prior year period.
Previous wording
Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions, require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 30, 2023 filed with the SEC. Other than as described below, there have been no significant changes to our critical accounting policies.
Current wording
Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates. A discussion of the accounting policies that management considers critical in that they involve significant management judgments and assumptions require estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results is included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 28, 2024 filed with the SEC.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In addition, as part of the Share Repurchase Program, on November 12, 2024, we entered into a second accelerated share repurchase agreement (the “November ASR Agreement”) with Goldman Sachs to repurchase an additional $100.0 million of YETI’s common stock. Pursuant to the November ASR Agreement, we made a payment of $100.0 million to Goldman Sachs and received an initial delivery of 1,933,301 shares of YETI’s common stock. We received a final delivery of an additional 551,955 shares on January 6, 2025. The November ASR resulted in the total repurchase of 2,485,256 shares.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•lower product costs, which favorably impacted gross margin by 80 basis points;
Previous report — wording carried elsewhere
Net sales in our two primary product categories were as follows:
Previous report — wording carried elsewhere
•the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which unfavorably impacted gross margin by 40 basis points;
Previous report — wording carried elsewhere
Other income was $0.4 million for the nine months ended September 28, 2024, compared to other expense of $2.8 million for the nine months ended September 30, 2023. The change versus the prior year period was primarily due to foreign currency gains on intercompany balances for the nine months ended September 28, 2024 versus foreign currency losses on intercompany balances for the nine months ended September 30, 2023.